Bill > HB1806

This bill modifies Oklahoma's individual income tax rates for taxable years beginning on or after January 1, 2026, reducing tax rates across different income brackets for single individuals, married individuals filing jointly, surviving spouses, and heads of households. The changes include lowering percentage rates at each income level, with most rates decreasing by 0.25 to 0.50 percentage points. For example, the first tax bracket for single filers will change from 0.25% to 0.00%, and the highest marginal rate will decrease from 4.75% to 4.50%. The bill also eliminates the previously allowed deduction for federal income taxes paid when calculating Oklahoma taxable income. These tax rate modifications aim to provide some tax relief for Oklahoma residents by reducing the overall tax burden across different filing statuses and income levels. The new tax rates will take effect on January 1, 2026, giving taxpayers and state financial planners time to prepare for the changes.

Budget and Finance

http://www.oklegislature.gov/BillInfo.aspx?Bill=hb1806&Session=2600