Bill > SB308

This bill modifies Oklahoma's income tax rates for individual taxpayers from tax year 2024 through 2029, progressively reducing tax rates and tax brackets. For tax year 2024, the bill establishes new tax rates ranging from 0.25% to 4.75% for single and married/joint filers, with different income bracket thresholds. In subsequent years, the bill further reduces rates and increases tax-free income thresholds: for 2025, rates range from 0.00% to 3.75%; for 2026, rates range from 0.00% to 2.75%; for 2027, rates range from 0.00% to 1.75%; and for 2028, rates are limited to 0.00% and 0.75%. Notably, for tax year 2029 and beyond, the bill eliminates individual income tax entirely. The bill also makes technical updates to references in the tax code, such as explicitly mentioning "Internal Revenue Code of 1986, as amended" and adjusting statutory language. Additionally, the bill maintains the 4% corporate tax rate established in previous legislation and includes provisions for taxation of nonresident aliens and foreign corporations. The effective date of the bill is set for November 1, 2025, which means the tax rate changes will be implemented for the specified tax years beginning in 2024.

Budget and Finance

http://www.oklegislature.gov/BillInfo.aspx?Bill=sb308&Session=2500