This bill amends Section 2355 of the Oklahoma income tax law, modifying tax rates and withholding requirements for individuals and corporations. It introduces new tax brackets for individuals starting in tax year 2024, with rates ranging from 0.25% to 4.75% based on income levels. For tax year 2025 and beyond, the bill establishes a new tax structure for individuals, with a 0.00% tax on the first $25,000 for single filers and $50,000 for married couples filing jointly, gradually increasing to 4.75% on higher income levels. Additionally, it specifies that no deductions for federal income taxes paid will be allowed when calculating taxable income.

The bill also revises the tax rates for nonresident aliens and corporations, reducing the tax rate for nonresident aliens from 30% to 8% and maintaining a 4% tax rate for corporations. It updates statutory references and language throughout the section, ensuring compliance with 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