This bill amends Section 2355 of the Oklahoma Statutes regarding income tax rates for individuals and corporations. It introduces new tax rates for individuals starting from January 1, 2024, and continuing through December 31, 2025. The new rates include a 0.25% tax on the first $1,000 of taxable income, escalating to a 4.75% tax on the remainder for single individuals and married individuals filing separately. For married individuals filing jointly, the rates start at 0.25% on the first $2,000 and also reach 4.75% on the remainder. Additionally, the bill specifies that no deductions for federal income taxes paid will be allowed to arrive at taxable income.

Furthermore, the bill establishes a new tax structure for individuals beginning January 1, 2026, which includes a 0.0% tax on the first $1,000 and $2,000 for single and married filers, respectively, with subsequent rates increasing to 4.75% on the remainder. The bill also modifies the tax rate for nonresident aliens and corporations, reducing the tax rate from 30% to 8% for nonresident aliens and maintaining a 4% tax for corporations. The act is set to take effect on November 1, 2025.

Statutes affected:
Introduced: 68-2355