This bill amends Section 2355 of Title 68 of the Oklahoma Statutes, which pertains to income tax rates for individuals and corporations. The bill introduces new tax rates for individuals starting from January 1, 2024, and ending after December 31, 2025. For single individuals and married individuals filing separately, the tax rates will range from 0.25% to 4.75%, while married individuals filing jointly will have rates from 0.25% to 4.75% as well. Notably, the bill specifies that no deductions for federal income taxes paid will be allowed to arrive at taxable income. Additionally, for taxable years beginning on or after January 1, 2026, the bill sets a tax rate of 0% for the first $1,000 and $2,000 for single and married individuals respectively, with subsequent rates following the same structure as before.

The bill also modifies the tax structure for nonresident aliens and corporations, reducing the tax rate for nonresident aliens from 30% to 8% and for foreign corporations from 30% to 4%. Furthermore, it clarifies that fiduciaries will be taxed at the same rates as single individuals without the allowance for federal income tax deductions. The act is set to become effective on November 1, 2025.

Statutes affected:
Introduced: 68-2355