The bill amends Section 2355 of the Oklahoma income tax law, introducing new tax brackets and rates for individual taxpayers starting in tax year 2024, with a gradual reduction in rates leading to no income tax for individuals by 2030. Single individuals will be taxed at 0.25% on the first $1,000 of taxable income, increasing to 4.75% on the remainder, while married individuals filing jointly will have similar adjusted rates. The bill also specifies that no deductions for federal income taxes paid will be allowed when calculating taxable income. Additionally, it reduces the tax rate for nonresident aliens from 30% to 8% on Oklahoma taxable income and imposes a flat 4% tax on corporations doing business in the state.

Furthermore, the bill extends the same tax rates applicable to single individuals to trusts and estates, prohibiting fiduciaries from deducting federal income tax paid. It introduces a new tax rate table for taxable years beginning after December 31, 1991, to be determined by the Tax Commission. A provision defining the "ceiling amount" for taxpayers will also be established by the Tax Commission for each tax rate category. These changes are set to take effect on November 1, 2025.

Statutes affected:
Introduced: 68-2355