Bill > SB304

This bill modifies Oklahoma's income tax rates and standard deduction for tax years 2024 and 2025. Specifically, for tax year 2024, the bill reduces income tax rates for both single and married taxpayers, with rates ranging from 0.25% to 4.75% depending on income level. For tax year 2025, the bill establishes a flat income tax rate of 4.75% for all taxpayers. The bill also increases the standard deduction for various filing statuses, with significant increases for single, married filing jointly, and head of household filers. For example, the standard deduction for married filing jointly would increase from $12,700 to $27,100. No deduction for federal income taxes paid will be allowed. The bill reflects ongoing efforts to modify Oklahoma's tax structure, potentially providing tax relief to residents by lowering rates and increasing standard deductions. The changes will take effect on November 1, 2025, which means they will apply to tax returns filed in 2026 for the 2025 tax year.