Bill > SB292

This bill modifies Oklahoma's income tax rates and structure for individuals and corporations, primarily focusing on changes for tax years beginning on or after January 1, 2024. For individual taxpayers, the bill introduces a new progressive tax rate structure with lower marginal rates: for single and married-filing-separately individuals, rates range from 0.25% to 4.75%, and for married couples filing jointly and heads of households, rates range from 0.25% to 4.75%. The bill also eliminates the previous option to deduct federal income taxes when calculating state taxable income. For corporations, the bill establishes a 4% tax rate for tax years 2022 through 2025, which will then drop to 0% for tax year 2026 and subsequent years. Similarly, for foreign corporations and state banking associations, the bill applies a 4% tax rate from 2022 to 2025, with a reduction to 0% starting in 2026. The changes are part of a broader effort to modify Oklahoma's tax code, with the bill specifically amending sections of the state's tax statutes. The bill is set to become effective on November 1, 2025, providing a transition period for taxpayers and businesses to adjust to the new tax rates.

Budget and Finance

http://www.oklegislature.gov/BillInfo.aspx?Bill=sb292&Session=2600