Oregon is set to potentially refund taxpayers a record-breaking $1.7 billion in “kicker” refunds when they file their tax returns in 2026, according to state economist Michael Kennedy. This comes after the state collected more personal income taxes than projected, triggering the unique “kicker” law that returns unanticipated funds to taxpayers if collections exceed projections by at least 2%.
In 2024, Oregonians received a record $5.6 billion in kicker refunds, and the $1.7 billion estimated for 2026 is slightly lower than previous projections but still significant. Kennedy’s announcement came during a briefing for state lawmakers on the latest forecast for the state budget, which predicts revenues to increase by $350 million for the next budget cycle.
The March revenue forecast will guide lawmakers in shaping the budget for the next biennium, with more discussions and negotiations expected in the coming months. The final budget will be developed based on the next budget forecast to be delivered in May.
Overall, the state seems to be in good financial standing, with increasing revenues and the potential for substantial refunds for taxpayers. This news is likely to be welcomed by Oregon residents as they prepare to file their taxes in the coming years.
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