OR-PTE-NR: Schedule OR-PTE-NR, Qualified Business Income Reduced Tax Rate for Oregon Nonresidents (2025)
Oregon · Oregon DOR · Used for tax years 2025
Oregon Schedule OR-PTE-NR is used by nonresidents to determine qualification for the reduced tax rate on qualifying business income. It reports qualifying business information and calculates tax on qualifying and nonqualifying income, comparing the result with tax calculated with
Who files this form
Schedule OR-PTE-NR is for Oregon nonresidents seeking the qualified business income reduced tax rate for 2025.
To qualify for the reduced rate, you must complete both sections and submit the schedule with Oregon Form OR-40-N. Section A lists qualifying sole proprietorships, S corporations, and partnerships. Only list businesses that qualify.
If Section A, line 7, is zero or less, you cannot use the reduced tax rate. The form refers to instructions for more information about qualifying businesses, but those instructions are not included here.
When it's due
For tax year 2025, the form lists these deadlines for amending a return to make or revoke the reduced-rate election:
- April 15, 2026: The original return due date.
- October 15, 2026: The deadline if filing an extension.
You cannot amend to make or revoke the election after the applicable deadline. If you amend after the return due date, including extensions, you must use the tax on Section B, line 12a, even if line 13a is lower.
What you'll need
Have Oregon Form OR-40-N and the following information available:
- Your name and Social Security number, plus your spouse’s name and Social Security number if filing jointly.
- For each qualifying business: name, FEIN, business code or NAICS code, entity type, and number of qualifying employees.
- Each qualifying business’s nonpassive income or loss and Oregon PTE-E tax deducted.
- Section 179 expenses attributable to qualifying S corporations and partnerships.
- Oregon taxable income from Form OR-40-N, line 45, and any depreciation additions or subtractions attributable to qualifying businesses from lines 30S and 33S.
Section B also refers to the instructions for tax calculations, including Tax rate chart B. Those instructions are not included in the supplied text.
How to file
Submit the original Schedule OR-PTE-NR with Oregon Form OR-40-N. Do not submit a photocopy.
Complete Section A to determine whether you qualify, then complete each applicable line in Section B to determine your tax. If Section A, line 7, is zero or less, return to Form OR-40-N, line 46, and complete the rest of that form.
The supplied form does not give a mailing address or e-filing instructions.
Common mistakes
- Submitting a photocopy: The form requires the original schedule.
- Leaving out the schedule or a required section: To qualify, complete both sections and include the schedule with Form OR-40-N.
- Listing businesses that do not qualify: Section A says to list only qualifying businesses.
- Using the reduced rate when Section A, line 7, is zero or less: The form says you cannot use the reduced rate in that case.
- Entering negative amounts where prohibited: Section B, lines 3a, 5a, and 9b, cannot be less than zero.
- Missing box 46c: If Section B, line 12a, is less than line 13a, enter line 14a on Form OR-40-N, line 46, and check box 46c.
- Changing the election too late: You cannot amend to make or revoke the election after the applicable due date, including extensions.
Questions people ask
Which business types can I list?
Section A allows qualifying sole proprietorships (SP), S corporations (SC), and partnerships (P). Only list businesses that qualify.
What if my total qualifying income is zero or negative?
If Section A, line 7, is zero or less, you cannot use the reduced tax rate. Return to Form OR-40-N, line 46, and complete the rest of the form.
Does the reduced rate always result in lower tax?
No. Section B compares total tax with the reduced rate on line 12a against the tax on line 13a. Line 14a uses the lesser amount. If line 13a is lower, the form says the reduced rate is not more beneficial.
When do I check box 46c on Form OR-40-N?
Check box 46c when Section B, line 12a, is less than line 13a. Enter the amount from line 14a on Form OR-40-N, line 46.
Can I amend my return to change the election?
For tax year 2025, you can amend to make or revoke the election on or before April 15, 2026, or October 15, 2026, if filing an extension. If you amend after the applicable due date, you must use the tax on Section B, line 12a, even if line 13a is lower.