Bill > SB322

This bill modifies Oklahoma's income tax rates for individuals and corporations, with key provisions focusing on changes to tax calculations and rates. For individual taxpayers, starting in tax year 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 maintains a 4% income tax rate for tax years 2022 through 2024, and then eliminates corporate income tax entirely beginning in tax year 2025. The bill also updates references to the Internal Revenue Code of 1986 and makes technical changes to language related to tax withholding for nonresident aliens and foreign corporations. Additionally, the bill modifies the banking privilege tax provisions, maintaining the 4% tax rate for banks and credit unions through 2024, with corresponding adjustments to how taxable income is calculated. The changes aim to provide tax relief for individuals and potentially attract business investment by reducing corporate tax burdens. The bill is set to become effective on November 1, 2025, giving taxpayers and businesses time to prepare for the new tax structure.

Budget and Finance

http://www.oklegislature.gov/BillInfo.aspx?Bill=sb322&Session=2600