Bill > SB312

This bill modifies Oklahoma's income tax provisions, focusing on personal exemptions and standard deductions for certain tax years. Starting in 2026, the bill introduces several significant changes: women who have given birth to or legally adopted at least four children and claimed them as dependents until they turn 18 will be exempt from state income tax, as will income earned by married couples where one spouse meets this criterion. Additionally, individuals under 25 years old will be exempt from state income tax. The bill also updates the standard deduction for certain groups, including a special provision for women between 25 and 30 years old who claim dependents, allowing them to claim a standard deduction equal to the state's estimated median income. For married couples who wed in the current or preceding calendar year, the bill provides a standard deduction equal to 50% of the state's estimated median income. These changes aim to provide tax relief for specific demographic groups, potentially incentivizing family formation and supporting younger workers. The bill will become effective on November 1, 2025, giving taxpayers and state tax authorities time to prepare for the new provisions.

Budget and Finance

http://www.oklegislature.gov/BillInfo.aspx?Bill=sb312&Session=2600