Bill > SB323

This bill modifies the income tax rates for both individuals and corporations in Oklahoma, with a phased approach to reducing the tax burden. For individual taxpayers, starting in 2024, the bill introduces a new tax rate structure with lower percentages across different income brackets, ranging from 0.25% to 4.75%, depending on filing status and income level. For corporations, the bill establishes a gradual reduction of the income tax rate: 4% for tax years 2022-2024, decreasing to 3% in 2025, 2% in 2026, 1% in 2027, and eliminating the corporate income tax entirely from 2028 onwards. The bill also updates similar tax rate reductions for state banking associations, national banking associations, and credit unions, mirroring the corporate tax rate reductions. Additionally, the bill makes some technical updates, such as referencing the Internal Revenue Code of 1986 and making minor language clarifications. The changes are designed to make Oklahoma's tax environment more competitive and potentially attract businesses to the state. The bill is set to become effective on November 1, 2025, providing a clear timeline for these tax rate changes.

Budget and Finance

http://www.oklegislature.gov/BillInfo.aspx?Bill=sb323&Session=2600