Bill > HB1788

This bill modifies Oklahoma's individual income tax rates and standard deduction amounts for tax years 2024-2025, and establishes a flat tax rate for tax years beginning in 2026. Specifically, for tax years 2024-2025, the bill reduces income tax rates for both single and married filers across different income brackets, with the top marginal rate decreasing from 5.25% to 4.75%. For single filers and those married filing separately, the new rate structure ranges from 0.25% to 4.75%, while for married joint filers and heads of household, the rates range from 0.25% to 4.75%. Starting January 1, 2026, the bill establishes a flat 4.75% income tax rate for all individual taxpayers, regardless of filing status. The bill also adjusts standard deduction amounts, increasing them for different filing statuses. For example, the standard deduction for single or married filing separately will increase from $6,350 to $10,350, and for married filing jointly from $12,700 to $20,700. These changes aim to provide tax relief for Oklahoma taxpayers by lowering income tax rates and increasing standard deductions.

Budget and Finance

http://www.oklegislature.gov/BillInfo.aspx?Bill=hb1788&Session=2600