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Bill > HB1599
OK HB1599
OK HB1599Revenue and taxation; income tax; pensions; taxable income; exemption; effective date.
summary
Introduced
02/03/2025
02/03/2025
In Committee
02/04/2025
02/04/2025
Crossed Over
Passed
Dead
Introduced Session
2025 Regular Session
Bill Summary
An Act relating to revenue and taxation; amending 68 O.S. 2021, Section 2358, as last amended by Section 155, Chapter 452, O.S.L. 2024 (68 O.S. Supp. 2024, Section 2358), which relates to adjustments to arrive at Oklahoma taxable income and Oklahoma adjusted gross income; removing monetary cap placed on certain pension benefits exempted from taxable income; and providing an effective date.
AI Summary
This bill modifies Oklahoma's income tax law by removing the monetary cap on certain pension benefits exempted from taxable income. Specifically, for the 2026 tax year and all subsequent tax years, retirement benefits received by individuals from various state and public retirement systems (including the Oklahoma Public Employees Retirement System, Teachers' Retirement System, Law Enforcement Retirement System, and others) will be completely exempt from taxable income once the individual reaches 65 years of age. Previously, there were monetary limits on how much retirement income could be exempted. The bill eliminates these previous monetary caps, effectively providing a full exemption for retirement benefits for qualifying individuals over 65. The change aims to provide greater tax relief for retirees by allowing them to exclude all of their retirement income from state taxation after reaching the age of 65. The bill will take effect on January 1, 2026, giving taxpayers and state tax authorities time to prepare for the new provisions.
Committee Categories
Budget and Finance
Sponsors (3)
Last Action
Recommendation to the full committee; Do Pass Appropriations and Budget Finance Subcommittee (on 02/24/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | http://www.oklegislature.gov/BillInfo.aspx?Bill=hb1599&Session=2600 |
| State Bill Page | http://www.oklegislature.gov/BillInfo.aspx?Bill=hb1599&Session=2500 |
| Fiscal Note/Analysis - House: Introduced | https://www.oklegislature.gov/cf_pdf/2025-26%20SUPPORT%20DOCUMENTS/BILLSUM/House/HB1599%20INT%20BILLSUM.PDF |
| Fiscal Note/Analysis - House: Introduced | https://www.oklegislature.gov/cf_pdf/2025-26%20SUPPORT%20DOCUMENTS/BILLSUM/House/HB1599%20INT%20BILLSUM.PDF |
| BillText | https://www.oklegislature.gov/cf_pdf/2025-26%20INT/hB/HB1599%20INT.PDF |
| BillText | https://www3.oklegislature.gov/cf_pdf/2025-26%20INT/hB/HB1599%20INT.PDF |
| BillText | http://webserver1.lsb.state.ok.us/cf_pdf/2025-26%20INT/hB/HB1599%20INT.PDF |
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