Arts Education Tax Filing and Payment Information

Beginning in tax year 2026, many taxpayers will no longer need to file a return to claim an Arts Education Tax exemption. Permanent filing exemptions for low-income seniors and low-income individuals with permanent disabilities are no longer available. Instead, taxpayers are automatically exempt if their Oregon taxable income is at or below the income threshold for their filing status.

In 2026, those income thresholds are:

• $20,000 for single or married filing separately
• $40,000 for married filing jointly, qualifying surviving spouse, or head of household filers

If your Oregon taxable income is below these thresholds, you do not need file or pay the Arts Education Tax this tax year.

If your Oregon Taxable income is above the threshold, you may be able to reduce your taxable income by claiming applicable deductions or exempt income adjustments when you file your Arts Education tax return.

Examples of non-taxable income include:

• Social Security
• Oregon Public Employees Retirement (PERS) benefits
• Federal Employees Retirement System (FERS)
• VA disability benefits

The Revenue Division may request additional documentation to verify your eligibility.

Learn more about Arts Education Tax exemptions and eligibility requirements.

You may qualify for an additional dependent deduction that lowers the income used to determine whether you owe the Arts Education Tax. To claim this deduction, you must file an Arts Education Tax return.

To determine if you are a resident of the City of Portland, you can easily check your address in Portland Maps. If your address has "Portland" in the Jurisdiction, you reside within the City of Portland.

The Arts Education Tax is not prorated. If you lived in Portland for at least 30 days during the tax year, you are responsible for the full tax amount.

Taxpayers who file their Oregon taxes on extension will automatically be granted an extension on their Arts Education Tax return. Note: an extension allows extra time to file a return but does not give extra time to pay. You must still pay the Arts Education Tax by the filing deadline (typically April 15 each year) to avoid late payment penalties.

Tip: If you filed your Oregon tax return on extension, pay the Arts Education Tax by the deadline and request a refund if it turns out you are below the Arts Education Tax filing thresholds.

Online payments are posted to your account on the next business day.

Payment sent by mail are considered timely if they are postmarked on or before the Arts Education Tax due date. Please do not mail cash.

To correctly identify your account, the City requires your full Social Security number (SSN) and year of birth, similar to the IRS and Oregon Department of Revenue. By providing your SSN and year of birth, it ensures your Arts Education Tax filing and payment are properly applied to your account. We also need the year of birth to ensure we do not assess the tax on someone under 18 years old.

Disclosure of your SSN is required. This requirement is authorized under the Federal Privacy Act of 1974, the Tax Reform Act of 1976, and the Arts Education Tax Administrative Rules. Your SSN will be used by the Revenue Division to assist in the administration of the Arts Education Tax including, but not limited to, compliance with federal Form 1099 filing requirements and comparison of Arts Education Tax filings to federal taxpayer information.

The safeguarding of your SSN is a top priority. The City securely administers many tax programs that require the submission of confidential taxpayer information. According to Portland City Code 6.10.190, it is unlawful for any City employee to divulge financial information submitted or disclosed to the City under the terms of the Arts Education Tax, including Social Security numbers. Our workspace is secure and confidential information in our database is encrypted. The Revenue Division has been approved to receive federal taxpayer information directly from the IRS and is therefore subject to IRS physical and electronic security requirements as well.

We mail a filing reminder each year between February and March to all known Portland households. Even if you have already paid your Arts Education Tax, you may still receive this reminder. We make every effort to notify all Portland households, but it is still the responsibility for eligible taxpayers to meet the tax deadline even if they do not receive a reminder.

The Arts Education Tax is not included on property tax statements or water bills because any bill sent to a specific residential property (like the property tax or the water bill) will not know whether the residents of that property are exempt, or whether they file single or joint Oregon tax returns. For example, the property tax bill for an apartment complex with 50 units will go to the property manager or property owner, not the individuals who rent the units. There could be 50 or more taxfilers at that one complex that owe the tax, yet only one property tax bill is issued. Similarly, the water bill does not include any information about how many adults live at the residential address or how many must pay the tax.

Most Portland residents who owe the Arts Education Tax pay voluntarily and on time. For those who don't, the Revenue Division makes multiple attempts to encourage taxpayers to file and pay their tax before it is referred to a third-party collection agency. This includes a "final demand" letter sent to the taxpayer's last known address making it clear that the account may be referred to a collection agency. 

Third-party collection agencies are commonly used by government and the private sector to collect delinquent debt because they have economies of scale and specialize in this work in ways that general government and the private sector cannot. 

Outsourcing delinquent Arts Education Tax debt allows the City to keep the cost of collections relatively low, so more of the tax dollars go to the schools and programs funded by the Arts Education Tax. If the Revenue Division did not use collection agencies, some people would end up not paying the tax, violating City code, and creating inequity for those who pay. This in turn would lead to lower compliance and reduced revenue. The Revenue Division is committed to fair enforcement of the City Code.

You may be subject to late payment penalties if your tax liability is not paid in full by the due date (generally April 15).

If you have been assessed penalties for the Arts Education Tax, you may request a penalty waiver. For your request to be considered, all outstanding tax must be paid and the request must be in writing either by mailing a request or submitting via email at ArtsTaxHelp@portlandoregon.gov.

If we deny your request, we will send you a written explanation in the mail.

Refunds will be issued only in the event of overpayment, duplicate payments, or a payment made when no tax was due. All refund requests must be made by submitting an Arts Education Tax return. If you made an overpayment, duplicate payment, or made a payment when no tax was due, you must request a refund by the later of:

• Three (3) years from the original due date of the Arts Education Tax return, or
• Two (2) years from the date the Arts Education Tax payment was made.

If a refund request is made after the statute of limitations shown above, the overpayment cannot be refunded.

IRS regulations require the City to file a 1099 GOV for any income tax refund of $10 or more. All 1099's require the full Social Security Number when transmitted to the IRS.