Bill > SB293

This bill modifies Oklahoma's individual income tax rates for tax years 2024 through 2032, progressively reducing the tax rates over time. For tax year 2024, the bill establishes new income tax brackets with rates ranging from 0.25% to 4.75% for single and married filers, eliminating the previous deduction for federal income taxes. In subsequent years, the tax rates continue to decrease, with 2025 seeing rates between 0.00% and 4.15%, 2026 rates between 0.00% and 3.55%, and so on. By tax year 2032, the bill eliminates all individual income tax for Oklahoma residents. The bill also maintains a flat 4% corporate income tax rate for corporations doing business in Oklahoma and sets a reduced withholding rate of 8% for nonresident aliens (instead of the previous 30%). The legislation updates statutory language and references to the Internal Revenue Code of 1986, as amended, and will become effective on November 1, 2025. This represents a significant long-term tax reduction strategy for Oklahoma, gradually phasing out individual income tax over a nine-year period.

Budget and Finance

http://www.oklegislature.gov/BillInfo.aspx?Bill=sb293&Session=2600