This bill amends Oklahoma's individual income tax rates and standard deduction amounts, effective January 1, 2024. It introduces a tiered tax rate system with lower rates, starting at 0.25% for single individuals on the first $1,000 and increasing to 4.75% on the remainder, while married individuals filing jointly will have similar rates starting at 0.25% for the first $2,000. The bill also specifies that no federal income tax deductions will be allowed in calculating taxable income. Additionally, it establishes a new tax rate of 4.75% for individuals beginning January 1, 2026, and reduces the tax rate for nonresident aliens from 30% to 8%. The amendments aim to simplify the tax structure and create a more favorable tax environment for both residents and nonresidents.

The bill further modifies the standard deduction for individuals, extending provisions for 2017 through 2025 and introducing new amounts for taxable years beginning on or after January 1, 2026. The new standard deduction amounts will be $10,350 for single or married filing separately, $20,700 for married filing jointly or qualifying widower with dependent child, and $15,300 for head of household. It also includes various tax provisions affecting taxable income for different categories of taxpayers, such as exemptions for death benefits received by emergency medical technicians, deductions for organ donation expenses, and adjustments related to military service and retirement benefits. Overall, the bill aims to provide tax relief and streamline the tax code for Oklahomans.

Statutes affected:
Introduced: 68-2355, 68-2358