The Tax section is used for Oregon tax items that aren't automatically calculated from the information entered elsewhere in the return. Most taxpayers won't need to enter anything on this screen. Complete these fields only if they apply to your Oregon return.
Interest Paid on Installment Sales for Deferred Tax Liability
What is this entry?
Enter the amount of interest on certain installment sales if you were required to pay interest on a deferred tax liability for federal income tax purposes.
Oregon requires taxpayers who owe federal interest on certain installment sale gains to also calculate and pay a corresponding Oregon interest charge. The Oregon interest is reported as an addition to tax on the Oregon return. The calculation is generally performed using the same method used for the federal return. The interest rate for 2025 is 9 percent per year, or 0.75 percent (0.0075) per month. The interest rate for 2026 is 8 percent per year, or 0.67 percent (0.0067) per month.
When should I enter an amount?
Enter an amount only if:
- You sold property using the installment method.
- The sale created a deferred tax liability.
- You were required to calculate and pay interest on that deferred liability for federal tax purposes.
Residency considerations
Nonresidents: Include only installment obligations arising from the disposition of Oregon property.
Part-year residents:
- While a nonresident, include only installment obligations from dispositions of Oregon property.
- While a resident, include all installment obligations.
Where can I find the amount?
Use the interest amount calculated as part of your federal installment sale interest computation. Consult your federal return worksheets or the tax documents used to calculate the deferred tax liability interest.
What else do I need to know?
For additional information on installment sales, please refer to IRS Publication 537 and the Oregon instructions
Pass-Through Entity Income Reduced Tax Rate Schedule
What is this section?
Select Begin if you received income from an eligible pass-through entity (PTE) and need to determine whether the income qualifies for Oregon's pass-through entity tax benefits.
This section relates to Oregon's Pass-Through Entity Elective Tax (PTE-E Tax), established under Oregon Laws 2021, chapter 589. Certain partnerships, S corporations, and LLCs taxed as partnerships or S corporations may elect to pay Oregon income tax at the entity level and pass a tax benefit through to their owners.
Who may be affected?
You may need to complete this section if you:
- Are a partner in a partnership.
- Are a shareholder in an S corporation.
- Receive an Oregon Schedule OR-K-1 showing information related to the PTE-E Tax.
How the Oregon PTE-E Tax works
Eligible pass-through entities may elect to pay Oregon tax at the entity level. The entity pays tax on its Oregon-source distributive proceeds at:
- 9.0% on the first $250,000, and
- 9.9% on amounts exceeding $250,000.
When the entity makes the election:
- Individual owners may qualify for a refundable Oregon tax credit equal to their share of the PTE-E tax paid by the entity.
- Owners must also report an addition to income for their share of the PTE-E tax deducted by the entity on its federal return.
Information you may need
Have your Oregon Schedule OR-K-1 and any supporting information provided by the partnership or S corporation available before completing this schedule. The software will use the information entered to determine any applicable Oregon tax benefits.
Important
The PTE-E election is made by the pass-through entity, not by the individual taxpayer. If you're unsure whether the entity elected into the Oregon PTE-E Tax program, review your Schedule OR-K-1 or contact the entity that issued it.
Frequently Asked Questions
Do I need to complete the Tax section if none of these situations apply to me?
No. Oregon tax is generally calculated automatically based on information entered throughout the return. The Tax section is only for special Oregon tax additions or pass-through entity tax situations.
What happens if I leave the installment sale field blank?
If you weren't required to pay federal interest on a deferred installment sale tax liability, leave the field blank.
Can every business owner use the Pass-Through Entity Income Reduced Tax Rate Schedule?
No. The schedule applies only when the taxpayer has qualifying income from an eligible pass-through entity and receives the necessary information from that entity.