Bill > HB2285

This bill proposes the following key changes to Oklahoma's income tax rates and revenue determination processes: - Reduces the top marginal individual income tax rate from 5.5% to 4.5% beginning in 2024, with the potential for further rate reductions of 0.25 percentage points per year if certain revenue growth targets are met. - Establishes a new process for the State Board of Equalization to annually review revenue conditions and make determinations about reducing the 4.5% income tax rate, with a floor of 2.75%. - Increases the standard deduction amounts for individual taxpayers, with the standard deduction for single filers rising from $6,350 to $10,350 beginning in 2024. - Modifies the income thresholds for other existing individual income tax deductions and exemptions. - Makes no changes to the 4% corporate income tax rate enacted in 2021. The bill aims to gradually reduce Oklahoma's top individual income tax rate while linking future rate reductions to growth in the state's General Revenue Fund collections. The changes to standard deductions and other provisions are intended to provide additional tax relief for individual taxpayers.

Budget and Finance

http://www.oklegislature.gov/BillInfo.aspx?Bill=hb2285&Session=2400