Bill > SB290

This bill modifies Oklahoma's income tax rates and structures for individuals and corporations, primarily focusing on tax years 2024 and 2025. For individual taxpayers in tax year 2024, the bill reduces income tax rates across different filing status categories, lowering the top marginal rate to 4.75% and creating a simplified tax bracket structure with lower percentages compared to previous years. Notably, for tax year 2025 and subsequent years, the bill eliminates income tax entirely for both individual and corporate taxpayers. The legislation also updates references to the Internal Revenue Code and makes technical amendments to how taxes are calculated and reported. Additionally, the bill modifies the banking privilege tax, limiting it to tax years 2022 through 2024, and includes provisions for how banks and credit unions will be taxed during this period. The changes are designed to gradually reduce and ultimately eliminate state income tax, with the full implementation set to take effect on November 1, 2025, which will mark the beginning of the tax-free period for individuals and corporations in Oklahoma.

Budget and Finance

http://www.oklegislature.gov/BillInfo.aspx?Bill=sb290&Session=2600