Bill > SB295

This bill modifies Oklahoma's income tax rates and structure for tax years 2024 and 2025, with a significant change being the complete elimination of individual and corporate income taxes starting in 2025. For tax year 2024, the bill reduces income tax rates for both individual and corporate taxpayers, lowering the top marginal tax rate for individuals to 4.75% and setting a flat corporate tax rate of 4%. The bill amends existing tax law to create a gradual phase-out of income taxes, with single individuals, married couples, and corporations experiencing a stepped reduction in tax rates. For individuals, the new tax rates are structured with lower percentages across different income brackets, ranging from 0.25% to 4.75%, compared to previous higher rates. The bill also makes technical updates to references in the tax code, such as specifying "Internal Revenue Code of 1986, as amended" in various sections. Notably, for tax year 2025 and beyond, the bill completely eliminates income taxes for both individuals and corporations, representing a significant change in Oklahoma's tax policy. The effective date of these changes is set for November 1, 2025, giving taxpayers and state financial planners time to prepare for the upcoming tax structure modifications.

Budget and Finance

http://www.oklegislature.gov/BillInfo.aspx?Bill=sb295&Session=2600