Bill > HB1209

This bill modifies Oklahoma's personal income tax rates for taxable years beginning in 2024 and 2026, progressively reducing tax rates across different income brackets. For taxable years starting January 1, 2024, through December 31, 2025, the bill introduces lower tax rates for both single and married taxpayers, with rates ranging from 0.25% to 4.75% depending on income level. Notably, the bill eliminates the previous option to deduct federal income taxes when calculating state taxable income. For taxable years beginning January 1, 2026, the bill further reduces tax rates, effectively setting 0% tax rates for lower income brackets and maintaining 3.75% and 4.75% rates for higher income levels. The tax structure applies to resident and non-resident individuals, with specific provisions for different filing statuses including single, married filing jointly, heads of households, and surviving spouses. The bill also maintains existing tax rates for corporations at 4% and includes provisions for withholding and reporting requirements. The legislation will become effective on November 1, 2025, signaling a planned gradual reduction in Oklahoma's state income tax rates.

http://www.oklegislature.gov/BillInfo.aspx?Bill=hb1209&Session=2600