Oregon Department of Revenue

Rule Rule 150-314-0323
Estimated Tax: Interest on Underpayment


When an estimated tax payment is underpaid, as defined in OAR 150-314-0315 (Corporation Estimated Tax: Delinquent or Underestimated Payment or Both, Constitutes Underpayment), interest accrues on the underpaid amount at the rate provided in OAR 150-305-0140 (Interest on Deficiencies and Delinquencies) from the due date of the payment to the earlier of the date the tax is paid or the date the tax return is due.


Interest on underpayment of estimated tax (under ORS 314.525 (Underpayment of estimated tax)) will not be imposed if the tax on the prior year’s return was not over $10. A large corporation, as defined in ORS 314.525 (Underpayment of estimated tax)(5), may only use the exception for the first installment required.


Underpayment interest will not be imposed for a quarter in which the annualized taxable income results in a net annualized tax of $10 or less.

Last accessed
Jun. 8, 2021