This bill amends Section 2355 of the Oklahoma income tax law, modifying tax rates and withholding requirements for individuals and corporations. Notably, it introduces a new tax structure for individuals starting in tax year 2024, with rates set at 0.25% on the first $1,000, increasing progressively to 4.75% on the remainder. For married individuals filing jointly, the rates are similarly structured, beginning at 0.25% on the first $2,000 and also reaching 4.75% on the remainder. Additionally, the bill states that for tax year 2025 and subsequent years, there will be no tax imposed on the taxable income of any resident or nonresident individual.

The bill also revises the tax rates for nonresident aliens, reducing the tax from 30% to 8%, and establishes a 4% tax rate for corporations doing business in Oklahoma. Furthermore, it updates statutory references and language throughout the section, including the incorporation of the Internal Revenue Code of 1986, as amended. The effective date for these changes is set for November 1, 2025.

Statutes affected:
Introduced: 68-2355