Bill > HB1206

This bill modifies Oklahoma's personal income tax rates for individuals, implementing a phased reduction in tax rates over the next few years. For taxable years beginning in 2024 and 2025, the bill introduces lower tax rates across different income brackets, with rates ranging from 0.25% to 4.75% depending on filing status and income level. Starting in 2026, the bill further reduces tax rates, with the first income bracket being taxed at 0.0% for both single and married filers. The bill maintains the existing structure of progressive tax rates with different rates applied to progressively higher income levels, but significantly lowers the overall tax burden. Additionally, the bill specifies that no deduction for federal income taxes paid will be allowed when calculating taxable income. The tax rates apply to resident and non-resident individuals, with separate provisions for non-resident aliens, corporations, and fiduciaries. The act is set to become effective on November 1, 2025, providing taxpayers and state financial planners with advance notice of the upcoming tax rate changes.

http://www.oklegislature.gov/BillInfo.aspx?Bill=hb1206&Session=2600