This bill amends Section 2355 of the Oklahoma income tax code, modifying tax rates and withholding requirements for individuals and corporations. Key changes include the introduction of 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 income above specified thresholds. Additionally, the bill 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 from 30% to 8% for nonresident aliens and maintaining a 4% tax rate for corporations. Furthermore, it updates statutory references and language throughout the section. The effective date for these changes is set for November 1, 2025.

Statutes affected:
Introduced: 68-2355