Personal income tax penalties
Oregon doesn't allow an extension of time to pay, even if the IRS allows an extension.
You will owe a 5 percent late-payment penalty on any Oregon tax not paid by the original due date of the return, even if you have filed an extension.
If you file more than three months after the due date (including extensions), a 20 percent late-filing penalty will be added. So, you will owe a total penalty of 25 percent of any tax not paid. A 100 percent penalty is also charged if you do not file a return for three consecutive years by the due date of the third year, including extensions. In some situations, additional penalties may be added. Below is a list of penalties or you can read more in Publication OR-17.
* "Frivolous" includes, but is not limited to:
An argument, without any factual basis, that your constitutional rights were violated.
Reliance on a "gold standard" or "war tax" deduction.
An argument that wages or salary aren't taxable income.
An argument that the 16th Amendment to the U.S. Constitution wasn't properly adopted.
An argument that "unenfranchised, sovereign, freemen, or natural persons" aren't subject to tax laws.
Frequently asked questions
What interest rate does DOR charge on taxes owed?
The annual interest rate is 5 percent for interest periods beginning on or after January 1, 2018, 6 percent for interest periods beginning on or after January 1, 2019, 4 percent for interest periods beginning on or after January 1, 2021, 6 percent for interest periods beginning on or after January 1, 2023, and 8 percent for interest periods beginning on or after January 1, 2024. The interest rate may change once a calendar year. Interest rates are the same for taxes owed and refunds. Interest is charged and paid on tax only, penalties are not included.