The state assembly has made the following changes to 2025 Oregon tax returns:
What is the new standard deduction?
2025 Oregon standard deduction amounts:
- Married filing jointly: $5,670
- Head of household: $4,560
- Single: $2,835
- Married filing separately: $2,835
What's new for credits?
- Oregon Kids Credit. A new refundable tax credit is available to eligible taxpayers with a qualifying child age 5 or younger. For 2025, the income limit for the full credit is $26,550. The maximum credit amount for 2025 is $1,050 per qualifying dependent child, and phases down to zero for income at or above $31,550.
- Higher education savings and ABLE account credit. The 2025 limits for the credits for contributions made to a higher education savings account (Oregon College Savings Plan or MFS 529 Savings Plan) or an ABLE account are $360 if you're married and filing a joint return or $180 for all other filing status.
What's new for adjustments/deductions?
- First-time home buyer savings account (FTHBSA) subtraction. The limits for this subtraction are now adjusted for inflation. The 2025 maximum limits for the FTHBSA subtraction are $12,245 for joint account holders who file a joint return and $6,125 for all other account holders.
- Federal tax liability subtraction. The 2025 federal tax subtraction limit is $8,500 ($4,250 for married filing separately). It may be limited further based on your adjusted gross income (AGI).
Additional Information
- Federal return. When you file your Oregon return, you must include a copy of your federal Form 1040, 1040-SR, or 1040-NR with Schedules 1 through 3 (if applicable), or Form 1040-X if you're filing an amended return. Items on your Oregon return may be adjusted or denied if your federal return isn't included.
- Oregon Instruction