Bill > HB2740

This bill modifies Oklahoma's income tax structure, primarily focusing on income tax rates for individuals and corporations starting in 2026. The key provisions include changing the state's income tax rates by simplifying the existing multi-tier tax rate system to a flat 4.75% tax rate for all individual taxpayers, regardless of their filing status (single, married filing jointly, or head of household). The bill eliminates the previous graduated tax brackets with varying rates from 0.25% to 3.75%, replacing them with a uniform 4.75% rate on all Oklahoma taxable income. Additionally, the legislation removes the previous deduction for federal income taxes paid. The bill is scheduled to take effect on January 1, 2026, which will give taxpayers and state financial systems time to prepare for the new tax structure. This change represents a significant simplification of Oklahoma's income tax code, potentially making the state's tax system more straightforward and predictable for taxpayers.

Budget and Finance

http://www.oklegislature.gov/BillInfo.aspx?Bill=hb2740&Session=2600