Paper return processing won't begin until the end of March
Electronically-filed tax year 2025 Oregon personal income tax returns are being processed in the order they are received. However, paper return processing won't begin until the end of March.
The first refunds for e-filed returns are expected to be issued February 17. For paper filed returns, refunds will not start being issued until early April.
The delay in paper return processing will mean that the department won't be able to tell taxpayers who file paper returns that their return has been received until paper return processing starts at the end of March and their specific return enters processing. That also means information on paper-filed returns won't be available in the “Where's My Refund?" tool until that time.
What caused the delay
In the closing months of 2025, the IRS was late providing necessary tax forms and information to the Oregon Department of Revenue. As a result, the state's processing of paper-filed Oregon personal income tax returns can't begin until the end of March.
Using scanners, the department's front-end system captures the data reported on paper tax returns and checks. It then records the data in a digital format in DOR's core accounting system.
Part of preparing for tax season is programing the department's computer system on what data to capture and where to find it on each page of the return. Until the federal returns were finalized, the department wasn't able to finalize Oregon's returns and, ultimately, configure the system.
File electronically to avoid the delay
On average, taxpayers who e-file their returns and request their refund via direct deposit receive their refund within two weeks, starting in mid-February. The first refunds for paper filed returns won't be issued this year until April.
Taxpayers eager to receive their tax refund this year due to the kicker, should file electronically. Oregon's unique kicker is a refundable tax credit that either reduces the amount of tax owed or increases the amount of a taxpayer's refund.
Only taxpayers who filed a tax year 2024 return and also file a tax year 2025 return can receive a kicker. The credit is a percentage of Oregon personal income tax liability for the 2024 tax year.
Direct File Oregon
Oregon residents who normally mail their paper tax return to the department should consider using Direct File Oregon, a free filing option available through Revenue Online, or other online tax preparation software, to e-file and receive their refund—and their kicker—sooner.
In addition to Direct File Oregon, other free filing options are also available.
Free guided tax preparation is available from several companies for taxpayers that meet income requirements. Using links from the department's website ensures that both taxpayers' federal and state return will be filed for free.
All electronic filing software options approved for filing Oregon personal income tax returns can be found on the Electronic filing page of the agency's website.
Free and low-cost tax help
Free tax preparation services are available for low- to moderate-income taxpayers through AARP Tax Aide, VITA, and CASH Oregon. United Way also offers free tax help through their MyFreeTaxes program. Visit the Department of Revenue website to take advantage of the software and free offers and get more information about free tax preparation services.
Changes at the U.S. Postal Service could affect mailed returns
Taxpayers who choose to file a paper return, should mail it early. Due to changes at the U.S. Postal Service, returns mailed in after April 9 may not receive a postmark on time. Taxpayers who still want to mail their paper returns can take them to a local USPS office and request a postmark no later than April 15, 2026.
Paper returns can also be physically deposited in drop boxes available on both the east and west sides of the Department of Revenue Building in Salem, or outside the DOR offices in Portland, Eugene, Medford, and Bend. A drop box at DOR's Gresham office is available during business hours.