Oregon tax payment plan options from the Department of Revenue

Arrange a plan online for up to 36 months

Oregon gives you three years to pay, with little paperwork required. For plans of up to 36 months, use the state tax portal, Revenue Online, to set one up. Details are on the DOR plan page. If the portal will not let you finish, the department asks you to call.

The department suggests that you pay what you can until your first bill arrives. Once your plan begins, ACH (an electronic bank transfer) can automatically withdraw your monthly payments from your bank. You can also pay by credit card, although a fee may apply.

Do you need a plan longer than 36 months?

Through Revenue Online, submit a Statement of Financial Condition with all required documents. People facing a short setback, such as a temporary job loss or disability, may ask for temporary uncollectible status. For a longer hardship, one option is suspended collection status, which comes with legal tests of its own. Neither status is available to businesses.

A returned payment results in a penalty

Be sure that each payment goes through. As the plan page states, ORS 305.228 requires Oregon to charge a penalty if one person has two or more dishonored payments during two years. The penalty is $25 or three times the amount of the returned payment, whichever is greater, with a limit of $500.

Penalties and interest for Oregon income tax

Oregon does not grant extra time to pay, even when the IRS does. The main charges appear on the personal income tax penalties page.

• If tax remains unpaid after its original due date, a 5% late payment penalty applies.
• A 20% penalty applies when you file more than three months late.
• For periods beginning on or after January 1, 2026, the annual interest rate is 8%. This rate covers tax only and excludes penalty charges.
• Tax that stays unpaid for more than 60 days following assessment is subject to an extra 4% annual rate.

How Oregon handles collections when you make no payment

The DOR collections page explains what follows if you make no payment, skip a plan or miss payments you agreed to make. Among the listed collection steps are recording a tax lien in county records and taking state and federal refunds. Other steps include suspending professional licenses and garnishing wages or bank accounts. Boats and other property, including RVs, may be seized and sold, but your main home cannot be.

Most of this happens later. The letters arrive in this order: a Notice of Assessment first, the Notice and Demand for Payment next and a distraint warrant last. This legal document is called a distraint warrant. It works much like a court judgment and it is not the same as an arrest warrant. Anyone with more than $50,000 in delinquent tax may be named on the public Delinquent Taxpayers List.

Paying less through a settlement and where the IRS fits in

A settlement offer may be available to some people when a plan cannot work. Filing every return is required. Appeal rights must have expired. Send 5% of the offer with the application. Acceptance of an offer starts a three-year period of filing and paying on time.

The IRS does not take responsibility for your Oregon balance. Deal with each plan on its own and make two payments every month.

Nearby states

• Washington
• Idaho
• Nevada
• California
• All states