Oregon
EARNED INCOME TAX CREDIT (EITC)
Rates (Fully-Refundable):1
- 9% of the federal credit
- 12% for families with dependents under the age of three
Eligibility Requirements: All Oregon taxpayers who qualify for the federal credit are automatically eligible.
Latest Legislative Action:
- On March 17, 2022, the Oregon Legislature passed House Bill 4157, which included a one-time payment of $600 to Oregon households who received the EITC on their 2020 tax filing. Payments were automatically sent to tax filers, and taxpayers who were eligible for the EITC in 2020 but did not file could amend their federal and state returns by April 15, 2023, to receive their funds.
- In July 2019, Governor Kate Brown signed into law a bill to renew the state’s EITC until 2026 and increase the size of the credit from 11 to 12 percent of the federal credit for taxpayers with dependent children under the age of three, and from 8 to 9 percent of the federal credit for all other eligible taxpayers.
- During the 2016 legislative session, Gov. Brown signed into law a bill that increased the EITC rate to 11% of the federal credit for families with children under the age of three.
CHILD TAX CREDIT (CTC)
Rate (Fully-Refundable): $1,000 per eligible dependent
Eligibility Requirements:
- Eligible filers who earn $30,000 or less.
- All qualifying children must be under the age of six.
Latest Legislative Action: On July 31, 2023, Gov. signed HB3235, creating a new, refundable state CTC valued at $1,000 per eligible dependent.
Notes: Known as the Oregon Kids’ Credit.
CHILD AND DEPENDENT CARE TAX CREDIT (CDCTC)
Oregon offers its own version of the CDCTC, but it is structured differently than the federal credit.
Rates (Fully-Refundable):2 Families may claim a percentage of child care expenses eligible for the federal CDCTC according to their proximity to the federal poverty level and the age of their youngest child at the close of the tax year. The credit is not to exceed $12,000 for one qualifying dependent or $24,000 for two or more qualifying dependents. See the following table for a detailed breakdown.
| APPLICABLE PERCENTAGE OF QUALIFYING EXPENSES BY AGE OF YOUNGEST CHILD | ||||
|---|---|---|---|---|
| Greater of Federal or Oregon Adjusted Gross Income, as Percentage of Federal Poverty Level | <3 Years | 3 – 6 Years | 6-13 Years, or 13-18 Years If Disabled | >18 Years If Disabled |
| <10% | 10% | 8% | 5% | 5% |
| 10% – 20% | 20% | 18%: | 15% | 5% |
| 20% – 30% | 30% | 28%: | 25% | 10% |
| 30% – 40% | 40% | 38%: | 35% | 20% |
| 40% – 50% | 50% | 48%: | 45% | 30% |
| 50% – 60% | 55% | 53% | 50% | 35% |
| 60% – 70% | 60% | 58% | 55% | 40% |
| 70% – 80% | 65% | 63% | 60% | 45% |
| 80% – 90% | 70% | 68% | 65% | 50% |
| 90% – 110% | 75% | 73% | 70% | 55% |
| 110% – 120% | 71% | 69% | 66% | 50% |
| 120% – 130% | 66% | 64% | 61% | 45% |
| 130% – 140% | 61% | 59% | 56% | 39% |
| 140% – 150% | 55% | 53% | 50% | 33% |
| 150% – 160% | 50% | 48% | 45% | 28% |
| 160% – 200% | 47% | 45% | 42% | 25% |
| 200% – 210% | 45% | 43% | 40% | 22% |
| 210% – 220% | 40% | 38% | 35% | 20% |
| 220% – 230% | 35% | 33% | 30% | 15% |
| 230% – 240% | 30% | 28% | 25% | 10% |
| 240% – 250% | 20% | 18% | 15% | 5% |
| 250% – 260% | 10% | 8% | 5% | 5% |
| 260% – 280% | 6% | 6% | 4% | 4% |
| 280% – 300% | 4% | 4% | 4% | 4% |
| 300% | Ineligible | |||
Eligibility: All claimants must be eligible for the federal CDCTC and household income may not exceed 300% of the federal poverty line. (See Oregon’s 2022 WFHDC information document for details)
Latest Legislative Action: During the 2015 legislative session, lawmakers passed HB 2171, which combined Oregon’s refundable Working Family Child Care Credit with its non-refundable state-level CDCTC. Along with making the new credit refundable for all claimants, the legislation changes income thresholds and percentages of qualifying expenses, making the credit more generous for families with younger children. These provisions will go into effect for tax years beginning on or after January 1, 2016.
Source:
- Other Oregon Credits, Oregon Department of Revenue
- HB 2171, 2015, Oregon Legislative Assembly