If you are a full-year Oregon resident who has income taxed by Oregon and one or more of these states: Arizona, California, Indiana, or Virginia, you cannot claim the credit on your Oregon return. You must claim the credit on the nonresident return you file with the other state. See instructions on the other states tax form to figure the credit.

This credit is only for state income tax. You cannot claim the credit for city tax, county tax, school tax, sales tax, alternative minimum tax (AMT), property tax, or other taxes not based on income. For example, the Idaho Permanent Building Fund Tax and the Washington Business and Occupation Tax do not qualify.

When can this credit be claimed?
You may claim this credit only after you have paid the tax to the other state. If you pay tax to another state for a prior tax year, you must amend your return for that year to claim the credit.

If Oregon and another state tax you on the same income, but in different tax years, Oregon will allow a credit for the year the tax is paid to Oregon. If you need more information, call the department or visit the Oregon Website for more information on the administrative rule OAR 150-316.082(6).

If you have a gain from the sale of your home, and you pay tax to Oregon and another state or country on that sale, you may claim either the credit for taxes paid to another state or the credit for mutually taxed gain on the sale of residential property. You cannot claim both credits. Visit the Oregon Website for more information on the sale of residential property.

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