Bill > HB1267

This bill modifies Oklahoma's personal income tax rates for individuals over several tax years, progressively reducing tax rates across different income brackets. For tax years beginning in 2024 and ending in 2025, the bill introduces lower marginal tax rates, with rates ranging from 0.25% to 4.75% depending on filing status and income level. Significantly, for tax years beginning on or after January 1, 2026, the bill further reduces tax rates, eliminating taxes on the first several thousand dollars of income for both single and joint filers, while maintaining the 1.75% to 4.75% rates for higher income brackets. The bill removes the option to deduct federal income taxes when calculating taxable income and maintains different tax rate structures for various filing statuses, including single individuals, married couples filing jointly, heads of households, and surviving spouses. Additionally, the bill keeps consistent tax rates for corporations at 4% and provides specific withholding requirements for nonresident aliens and foreign corporations. The changes will become effective on November 1, 2025, providing a gradual approach to tax rate reduction.

Budget and Finance

http://www.oklegislature.gov/BillInfo.aspx?Bill=hb1267&Session=2600