Bill > HB2195

This bill modifies Oklahoma's individual income tax rates for taxable years beginning on or after January 1, 2026, by significantly simplifying the tax rate structure. Specifically, the bill eliminates the current progressive tax brackets with multiple rates ranging from 0.25% to 3.75% and replaces them with a flat 4.75% tax rate for all income levels. The new tax structure applies to both single individuals/married individuals filing separately and married individuals filing jointly or heads of households. The bill removes the previous tiered tax rate system where different percentages were applied to different income ranges, creating a more straightforward tax calculation. Additionally, the bill eliminates the option to deduct federal income taxes when calculating state taxable income. The changes will take effect on November 1, 2025, meaning they will apply to tax years starting January 1, 2026. This simplification of the tax code aims to provide a more uniform and potentially more predictable tax rate for Oklahoma residents.

Budget and Finance

http://www.oklegislature.gov/BillInfo.aspx?Bill=hb2195&Session=2600