Bill > HB1208

This bill modifies Oklahoma's personal income tax rates for tax years beginning in 2024 through 2026, implementing a gradual reduction in tax rates. For tax years 2024 and 2025, the bill introduces a new tax rate structure with lower percentages across different income brackets for single and married taxpayers, eliminating the option to deduct federal income taxes. Notably, for tax years beginning on or after January 1, 2026, the bill further reduces tax rates, setting the first three income brackets at 0% for both single and married filers, while maintaining 2.75%, 3.75%, and 4.75% rates for higher income levels. The bill specifically applies to resident and non-resident individuals' Oklahoma taxable income and maintains existing tax rates for corporations at 4%. The changes are part of a systematic approach to gradually reduce income tax rates, with the new provisions becoming effective on November 1, 2025, allowing taxpayers and tax authorities time to prepare for the implementation of the new tax structure.

http://www.oklegislature.gov/BillInfo.aspx?Bill=hb1208&Session=2500