OR-ESTIMATE: Publication OR-Estimate, Estimated Income Tax Instructions (2025)

Who files this form

For tax year 2025, you generally must make Oregon estimated tax payments if:

• You expect to owe $1,000 or more after withholding and all credits, including refundable credits; and
• Your estimated withholding will be less than 90% of your 2025 tax after credits, 100% of your 2024 tax after credits, or 90% of the tax on your 2025 annualized income.

The publication’s worksheet helps you determine your required payment. You may also make estimated payments voluntarily if your tax after credits will be less than $1,000.

Special situations

• Estates and trusts: Oregon does not require estimated tax payments.
• Farmers and commercial fishermen: You do not have to make estimated payments if farming or fishing, including oyster farming, accounted for at least two-thirds of your gross income for 2024 or will account for at least two-thirds of your estimated gross income for 2025.
• Nonresidents: Estimate tax only on Oregon-source income.
• Part-year residents: Include all income for the time you are an Oregon resident and Oregon-source income for the rest of the year.
• Retirees: You may need estimated payments or Oregon withholding from retirement income.

When it's due

Tax year 2025, calendar-year filers

You may pay all your estimated tax by April 15, 2025, or make four equal installments:

| Installment | Due date |

|---|---|

| First | April 15, 2025 |

| Second | June 16, 2025 |

| Third | September 15, 2025 |

| Fourth | January 15, 2026 |

If the income subject to estimated tax begins later or your income changes significantly during 2025, the publication provides these schedules:

• After April 1 and before June 2: Three installments, due June 16, 2025; September 15, 2025; and January 15, 2026.
• After June 1 and before September 2: Two installments, due September 15, 2025, and January 15, 2026.
• After September 1: One installment, due January 15, 2026.

Tax year 2025, fiscal-year filers: Regular installments are due on the 15th day of the fourth, sixth, and ninth months, and 15 days after the last day of the tax year.

If a due date falls on a Saturday, Sunday, or Oregon legal holiday, payment is due the next business day. Mailed payments must be postmarked by the payment due date.

What you'll need

To figure your estimated payments, have:

• Your 2024 Oregon return and instructions.
• Your 2024 federal return, all schedules, and instructions.
• The Oregon estimated tax worksheet included in this publication.
• The publication’s 2025 Oregon indexed figures and tax rate charts.
• The Annualized Income Worksheet in Form OR-10 Instructions, if you will annualize your income.

For payment by check or money order, use Form OR-40-V or your personalized voucher.

Keep the estimated tax worksheet with your records. If you use the reduced rate for qualified business income, the farm capital gain rate, or farm income averaging, also keep a record showing how you figured the tax.

How to file

Figure your payment

Use the estimated tax worksheet in Publication OR-ESTIMATE. For annual payments or regular installments, the required annual payment is the smaller of 90% of your estimated 2025 tax after credits or 100% of your 2024 tax after credits. Subtract expected 2025 Oregon withholding to figure your annual estimated tax payment. Keep the worksheet with your records.

Pay electronically

You can pay directly from a checking or savings account, or by debit or credit card. A convenience fee may apply to card payments. Visit Revenue Online at www.oregon.gov/dor for more information.

Pay by mail

1. Complete Form OR-40-V using blue or black ink and mark the “Estimated payment” box.
2. Make your check or money order payable to “Oregon Department of Revenue.” Write “2025 OR-40-V” and the last four digits of your SSN or ITIN on it.
3. Put the payment and voucher in one envelope without stapling them together. Mail them separately from your return or other correspondence to:

Oregon Department of Revenue

PO Box 14950

Salem OR 97309-0950

Pay cash in person

Cash payments are accepted only at the main office at 955 Center Street NE in Salem. Field offices cannot accept cash. Bring your personalized voucher, or the department can create one for you.

Common mistakes

• Treating estimated payments as a substitute for withholding. If too little Oregon tax is being withheld, ask your employer or payer to increase withholding using Form OR-W-4.
• Using the wrong voucher or leaving it incomplete. Use Form OR-40-V only for check or money order payments, mark the “Estimated payment” box, and use blue or black ink.
• Mailing cash or postdated checks. Do not send either. Cash is accepted only in person at the main Salem office.
• Stapling the payment to the voucher or mailing it with your return. Enclose the payment and voucher without stapling, and send them separately from your return or other correspondence.
• Overlooking incorrect personal information. Double-check personalized vouchers. Send a separate Change of Address/Name form for changes; address changes can also be reported through Revenue Online.
• Waiting to make up an underpaid installment. Pay the difference as soon as possible rather than waiting for the next installment date to reduce potential interest charges.
• Assuming an entire prior-year refund will become an estimated payment. Refund offsets for tax or other debt reduce the amount applied.

Questions people ask

What if my income is uneven during the year?

You can figure installments by annualizing your income. Use the Annualized Income Worksheet in Form OR-10 Instructions as a guide for your 2025 payments.

Can I use my 2024 tax to calculate my 2025 required payment?

Yes. The safe harbor method uses 100% of your 2024 tax after all credits. You must file your 2024 return before your 2025 return. The 2024 return cannot be a short-year return, but it may be a part-year return.

Can spouses make joint estimated payments?

Yes, if they plan to file a joint return for 2025. Do not make joint payments if either spouse is a non-U.S. citizen without permanent resident status, the spouses are legally separated, or they have different tax years. If you expect to file separate returns, make separate payments.

Can I apply a refund toward estimated tax?

Yes. You can choose to apply some or all of a tax overpayment to a later tax year’s estimated tax. Any refund offset for tax or other debt reduces the amount applied.

What happens if an installment is late or too small?

You may owe underpayment interest when you file your 2025 return. Estimated payments are applied to unpaid installment periods before later periods. Interest on an underpaid installment runs until it is paid or the return due date, whichever comes first. The interest amount is reported on Form OR-10.

Official sources

• https://www.oregon.gov/dor/forms/FormsPubs/publication-or-estimate_101-026_2025.pdf