Bill > SB305

This bill modifies Oklahoma's income tax rates for tax years 2024 and 2025, significantly reducing the state's income tax structure. For tax year 2024, the bill establishes a new progressive tax rate system with lower marginal tax rates for both single and married filers, ranging from 0.25% to 4.75%, and specifically eliminates the previous deduction for federal income taxes paid. Most notably, the bill provides that for tax year 2025 and subsequent years, there will be no income tax imposed on Oklahoma residents or non-residents. The bill updates various statutory references to the Internal Revenue Code, ensuring language consistency, and makes corresponding changes to tax calculations for different filing statuses including single individuals, married couples filing jointly, heads of households, and non-resident aliens. The tax changes will become effective on November 1, 2025, which means the elimination of the state income tax will begin with the 2025 tax year. This represents a significant shift in Oklahoma's tax policy, effectively phasing out the state's individual income tax.

Budget and Finance

http://www.oklegislature.gov/BillInfo.aspx?Bill=sb305&Session=2500