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, which includes lower rates such as 0.25% on the first $1,000 and 4.75% on the remainder for single individuals. For married individuals filing jointly, the rates are similarly adjusted, with a 0.25% tax on the first $2,000 and 4.75% on the remainder. Additionally, the bill stipulates that there will be no income tax imposed on any resident or nonresident individual for tax year 2025 and subsequent years.

The bill also updates statutory references and language, including the incorporation of the Internal Revenue Code of 1986, as amended, into the definitions for various taxpayer categories. It reduces the tax rate for nonresident aliens from 30% to 8% and maintains a 4% tax rate for corporations doing business in Oklahoma. The effective date for these changes is set for November 1, 2025.

Statutes affected:
Introduced: 68-2355