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1 STATE OF OKLAHOMA
1
2 1st Session of the 60th Legislature (2025)
2
3 SENATE BILL 308 By: Deevers
3
4
4
5
5
6 AS INTRODUCED
6
7 An Act relating to tax; amending 68 O.S. 2021,
7 Section 2355, as last amended by Section 1, Chapter
8 27, 1st Extraordinary Session, O.S.L. 2023 (68 O.S.
8 Supp. 2024, Section 2355), which relates to income
9 tax; modifying certain income tax rate for certain
9 tax years; updating statutory language; updating
10 statutory references; and providing an effective
10 date.
11
11
12
12
13 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
13
14 SECTION 1. AMENDATORY 68 O.S. 2021, Section 2355, as
14
15 last amended by Section 1, Chapter 27, 1st Extraordinary Session,
15
16 O.S.L. 2023 (68 O.S. Supp. 2024, Section 2355), is amended to read
16
17 as follows:
17
18 Section 2355. A. Individuals. For all taxable years beginning
18
19 after December 31, 1998, and before January 1, 2006, a tax is hereby
19
20 imposed upon the Oklahoma taxable income of every resident or
20
21 nonresident individual, which tax shall be computed at the option of
21
22 the taxpayer under one of the two following methods:
22
23 1. METHOD 1.
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24
24
Req. No. 1410 Page 1
1 a. Single individuals and married individuals filing
1
2 separately not deducting federal income tax:
2
3 (1) 1/2% tax on first $1,000.00 or part thereof,
3
4 (2) 1% tax on next $1,500.00 or part thereof,
4
5 (3) 2% tax on next $1,250.00 or part thereof,
5
6 (4) 3% tax on next $1,150.00 or part thereof,
6
7 (5) 4% tax on next $1,300.00 or part thereof,
7
8 (6) 5% tax on next $1,500.00 or part thereof,
8
9 (7) 6% tax on next $2,300.00 or part thereof, and
9
10 (8) (a) for taxable years beginning after December
10
11 31, 1998, and before January 1, 2002, 6.75%
11
12 tax on the remainder,
12
13 (b) for taxable years beginning on or after
13
14 January 1, 2002, and before January 1, 2004,
14
15 7% tax on the remainder, and
15
16 (c) for taxable years beginning on or after
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17 January 1, 2004, 6.65% tax on the remainder.
17
18 b. Married individuals filing jointly and surviving
18
19 spouse to the extent and in the manner that a
19
20 surviving spouse is permitted to file a joint return
20
21 under the provisions of the Internal Revenue Code of
21
22 1986, as amended, and heads of households as defined
22
23 in the Internal Revenue Code of 1986, as amended, not
23
24 deducting federal income tax:
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Req. No. 1410 Page 2
1 (1) 1/2% tax on first $2,000.00 or part thereof,
1
2 (2) 1% tax on next $3,000.00 or part thereof,
2
3 (3) 2% tax on next $2,500.00 or part thereof,
3
4 (4) 3% tax on next $2,300.00 or part thereof,
4
5 (5) 4% tax on next $2,400.00 or part thereof,
5
6 (6) 5% tax on next $2,800.00 or part thereof,
6
7 (7) 6% tax on next $6,000.00 or part thereof, and
7
8 (8) (a) for taxable years beginning after December
8
9 31, 1998, and before January 1, 2002, 6.75%
9
10 tax on the remainder,
10
11 (b) for taxable years beginning on or after
11
12 January 1, 2002, and before January 1, 2004,
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13 7% tax on the remainder, and
13
14 (c) for taxable years beginning on or after
14
15 January 1, 2004, 6.65% tax on the remainder.
15
16 2. METHOD 2.
16
17 a. Single individuals and married individuals filing
17
18 separately deducting federal income tax:
18
19 (1) 1/2% tax on first $1,000.00 or part thereof,
19
20 (2) 1% tax on next $1,500.00 or part thereof,
20
21 (3) 2% tax on next $1,250.00 or part thereof,
21
22 (4) 3% tax on next $1,150.00 or part thereof,
22
23 (5) 4% tax on next $1,200.00 or part thereof,
23
24 (6) 5% tax on next $1,400.00 or part thereof,
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Req. No. 1410 Page 3
1 (7) 6% tax on next $1,500.00 or part thereof,
1
2 (8) 7% tax on next $1,500.00 or part thereof,
2
3 (9) 8% tax on next $2,000.00 or part thereof,
3
4 (10) 9% tax on next $3,500.00 or part thereof, and
4
5 (11) 10% tax on the remainder.
5
6 b. Married individuals filing jointly and surviving
6
7 spouse to the extent and in the manner that a
7
8 surviving spouse is permitted to file a joint return
8
9 under the provisions of the Internal Revenue Code of
9
10 1986, as amended, and heads of households as defined
10
11 in the Internal Revenue Code of 1986, as amended,
11
12 deducting federal income tax:
12
13 (1) 1/2% tax on the first $2,000.00 or part thereof,
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14 (2) 1% tax on the next $3,000.00 or part thereof,
14
15 (3) 2% tax on the next $2,500.00 or part thereof,
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16 (4) 3% tax on the next $1,400.00 or part thereof,
16
17 (5) 4% tax on the next $1,500.00 or part thereof,
17
18 (6) 5% tax on the next $1,600.00 or part thereof,
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19 (7) 6% tax on the next $1,250.00 or part thereof,
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20 (8) 7% tax on the next $1,750.00 or part thereof,
20
21 (9) 8% tax on the next $3,000.00 or part thereof,
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22 (10) 9% tax on the next $6,000.00 or part thereof, and
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23 (11) 10% tax on the remainder.
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24
24
Req. No. 1410 Page 4
1 B. Individuals. For all taxable years beginning on or after
1
2 January 1, 2008, and ending any tax year which begins after December
2
3 31, 2015, for which the determination required pursuant to Sections
3
4 4 2355.1F and 5 2355.1G of this act title is made by the State Board
4
5 of Equalization, a tax is hereby imposed upon the Oklahoma taxable
5
6 income of every resident or nonresident individual, which tax shall
6
7 be computed as follows:
7
8 1. Single individuals and married individuals filing
8
9 separately:
9
10 (a) 1/2% tax on first $1,000.00 or part thereof,
10
11 (b) 1% tax on next $1,500.00 or part thereof,
11
12 (c) 2% tax on next $1,250.00 or part thereof,
12
13 (d) 3% tax on next $1,150.00 or part thereof,
13
14 (e) 4% tax on next $2,300.00 or part thereof,
14
15 (f) 5% tax on next $1,500.00 or part thereof,
15
16 (g) 5.50% tax on the remainder for the 2008 tax year and
16
17 any subsequent tax year unless the rate prescribed by
17
18 subparagraph (h) of this paragraph is in effect, and
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19 (h) 5.25% tax on the remainder for the 2009 and subsequent
19
20 tax years. The decrease in the top marginal
20
21 individual income tax rate otherwise authorized by
21
22 this subparagraph shall be contingent upon the
22
23 determination required to be made by the State Board
23
24
24
Req. No. 1410 Page 5
1 of Equalization pursuant to Section 2355.1A of this
1
2 title.
2
3 2. Married individuals filing jointly and surviving spouse to
3
4 the extent and in the manner that a surviving spouse is permitted to
4
5 file a joint return under the provisions of the Internal Revenue
5
6 Code of 1986, as amended, and heads of households as defined in the
6
7 Internal Revenue Code of 1986, as amended:
7
8 (a) 1/2% tax on first $2,000.00 or part thereof,
8
9 (b) 1% tax on next $3,000.00 or part thereof,
9
10 (c) 2% tax on next $2,500.00 or part thereof,
10
11 (d) 3% tax on next $2,300.00 or part thereof,
11
12 (e) 4% tax on next $2,400.00 or part thereof,
12
13 (f) 5% tax on next $2,800.00 or part thereof,
13
14 (g) 5.50% tax on the remainder for the 2008 tax year and
14
15 any subsequent tax year unless the rate prescribed by
15
16 subparagraph (h) of this paragraph is in effect, and
16
17 (h) 5.25% tax on the remainder for the 2009 and subsequent
17
18 tax years. The decrease in the top marginal
18
19 individual income tax rate otherwise authorized by
19
20 this subparagraph shall be contingent upon the
20
21 determination required to be made by the State Board
21
22 of Equalization pursuant to Section 2355.1A of this
22
23 title.
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24
24
Req. No. 1410 Page 6
1 C. Individuals. For all taxable years beginning on or after
1
2 January 1, 2024 tax year 2024, a tax is hereby imposed upon the
2
3 Oklahoma taxable income of every resident or nonresident individual,
3
4 which tax shall be computed as follows:
4
5 1. Single individuals and married individuals filing
5
6 separately:
6
7 (a) 0.25% tax on first $1,000.00 or part thereof,
7
8 (b) 0.75% tax on next $1,500.00 or part thereof,
8
9 (c) 1.75% tax on next $1,250.00 or part thereof,
9
10 (d) 2.75% tax on next $1,150.00 or part thereof,
10
11 (e) 3.75% tax on next $2,300.00 or part thereof, and
11
12 (f) 4.75% tax on the remainder.
12
13 2. Married individuals filing jointly and surviving spouse to
13
14 the extent and in the manner that a surviving spouse is permitted to
14
15 file a joint return under the provisions of the Internal Revenue
15
16 Code of 1986, as amended, and heads of households as defined in the
16
17 Internal Revenue Code of 1986, as amended:
17
18 (a) 0.25% tax on first $2,000.00 or part thereof,
18
19 (b) 0.75% tax on next $3,000.00 or part thereof,
19
20 (c) 1.75% tax on next $2,500.00 or part thereof,
20
21 (d) 2.75% tax on next $2,300.00 or part thereof,
21
22 (e) 3.75% tax on next $4,600.00 or part thereof, and
22
23 (f) 4.75% tax on the remainder.
23
24
24
Req. No. 1410 Page 7
1 No deduction for federal income taxes paid shall be allowed to
1
2 any taxpayer to arrive at taxable income.
2
3 D. Individuals. For tax year 2025, a tax is hereby imposed
3
4 upon the Oklahoma taxable income of every resident or nonresident
4
5 individual, which tax shall be computed as follows:
5
6 1. Single individuals and married individuals filing
6
7 separately:
7
8 (a) 0.00% tax on first $2,500.00 or part thereof,
8
9 (b) 0.75% tax on next $1,250.00 or part thereof,
9
10 (c) 1.75% tax on next $1,150.00 or part thereof,
10
11 (d) 2.75% tax on next $2,300.00 or part thereof, and
11
12 (e) 3.75% tax on the remainder.
12
13 2. Married individuals filing jointly and surviving spouse to
13
14 the extent and in the manner that a surviving spouse is permitted to
14
15 file a joint return under the provisions of the Internal Revenue
15
16 Code of 1986, as amended, and heads of households as defined in the
16
17 Internal Revenue Code of 1986, as amended:
17
18 (a) 0.00% tax on first $5,000.00 or part thereof,
18
19 (b) 0.75% tax on next $2,500.00 or part thereof,
19
20 (c) 1.75% tax on next $2,300.00 or part thereof,
20
21 (d) 2.75% tax on next $4,600.00 or part thereof, and
21
22 (e) 3.75% tax on the remainder.
22
23 No deduction for federal income taxes paid shall be allowed to
23
24 any taxpayer to arrive at taxable income.
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Req. No. 1410 Page 8
1 E. Individuals. For tax year 2026, a tax is hereby imposed
1
2 upon the Oklahoma taxable income of every resident or nonresident
2
3 individual, which tax shall be computed as follows:
3
4 1. Single individuals and married individuals filing
4
5 separately:
5
6 (a) 0.00% tax on first $3,750.00 or part thereof,
6
7 (b) 0.75% tax on next $1,150.00 or part thereof,
7
8 (c) 1.75% tax on next $2,300.00 or part thereof, and
8
9 (d) 2.75% tax on the remainder.
9
10 2. Married individuals filing jointly and surviving spouse to
10
11 the extent and in the manner that a surviving spouse is permitted to
11
12 file a joint return under the provisions of the Internal Revenue
12
13 Code of 1986, as amended, and heads of households as defined in the
13
14 Internal Revenue Code of 1986, as amended:
14
15 (a) 0.00% tax on first $7,500.00 or part thereof,
15
16 (b) 0.75% tax on next $2,300.00 or part thereof,
16
17 (c) 1.75% tax on next $4,600.00 or part thereof, and
17
18 (d) 2.75% tax on the remainder.
18
19 No deduction for federal income taxes paid shall be allowed to
19
20 any taxpayer to arrive at taxable income.
20
21 F. Individuals. For tax year 2027, a tax is hereby imposed
21
22 upon the Oklahoma taxable income of every resident or nonresident
22
23 individual, which tax shall be computed as follows:
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24
24
Req. No. 1410 Page 9
1 1. Single individuals and married individuals filing
1
2 separately:
2
3 (a) 0.00% tax on first $4,900.00 or part thereof,
3
4 (b) 0.75% tax on next $2,300.00 or part thereof, and
4
5 (c) 1.75% tax on the remainder.
5
6 2. Married individuals filing jointly and surviving spouse to
6
7 the extent and in the manner that a surviving spouse is permitted to
7
8 file a joint return under the provisions of the Internal Revenue
8
9 Code of 1986, as amended, and heads of households as defined in the
9
10 Internal Revenue Code of 1986, as amended:
10
11 (a) 0.00% tax on first $9,800.00 or part thereof,
11
12 (b) 0.75% tax on next $4,600.00 or part thereof, and
12
13 (c) 1.75% tax on the remainder.
13
14 No deduction for federal income taxes paid shall be allowed to
14
15 any taxpayer to arrive at taxable income.
15
16 G. Individuals. For tax year 2028, a tax is hereby imposed
16
17 upon the Oklahoma taxable income of every resident or nonresident
17
18 individual, which tax shall be computed as follows:
18
19 1. Single individuals and married individuals filing
19
20 separately:
20
21 (a) 0.00% tax on first $7,200.00 or part thereof, and
21
22 (b) 0.75% tax on the remainder.
22
23 2. Married individuals filing jointly and surviving spouse to
23
24 the extent and in the manner that a surviving spouse is permitted to
24
Req. No. 1410 Page 10
1 file a joint return under the provisions of the Internal Revenue
1
2 Code of 1986, as amended, and heads of households as defined in the
2
3 Internal Revenue Code of 1986, as amended:
3
4 (a) 0.00% tax on first $14,400.00 or part thereof, and
4
5 (b) 0.75% tax on the remainder.
5
6 No deduction for federal income taxes paid shall be allowed to
6
7 any taxpayer to arrive at taxable income.
7
8 H. For tax year 2029 and subsequent tax years, there shall be
8
9 no tax imposed upon the Oklahoma taxable income of any resident or
9
10 nonresident individual.
10
11 I. Nonresident aliens. In lieu of the rates set forth in
11
12 subsection A above, there shall be imposed on nonresident aliens, as
12
13 defined in the Internal Revenue Code of 1986, as amended, a tax of
13
14 eight percent (8%) instead of thirty percent (30%) as used in the
14
15 Internal Revenue Code of 1986, as amended, with respect to the
15
16 Oklahoma taxable income of such nonresident aliens as determined
16
17 under the provision of the Oklahoma Income Tax Act.
17
18 Every payer of amounts covered by this subsection shall deduct
18
19 and withhold from such amounts paid each payee an amount equal to
19
20 eight percent (8%) thereof. Every payer required to deduct and
20
21 withhold taxes under this subsection shall for each quarterly period
21
22 on or before the last day of the month following the close of each
22
23 such quarterly period, pay over the amount so withheld as taxes to
23
24 the Oklahoma Tax Commission, and shall file a return with each such
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Req. No. 1410 Page 11
1 payment. Such return shall be in such form as the Tax Commission
1
2 shall prescribe. Every payer required under this subsection to
2
3 deduct and withhold a tax from a payee shall, as to the total
3
4 amounts paid to each payee during the calendar year, furnish to such
4
5 payee, on or before January 31, of the succeeding year, a written
5
6 statement showing the name of the payer, the name of the payee and
6
7 the payee's Social Security account number, if any, the total amount
7
8 paid subject to taxation, and the total amount deducted and withheld
8
9 as tax and such other information as the Tax Commission may require.
9
10 Any payer who fails to withhold or pay to the Tax Commission any
10
11 sums herein required to be withheld or paid shall be personally and
11
12 individually liable therefor to the State of Oklahoma.
12
13 E. J. Corporations. For all taxable years beginning after
13
14 December 31, 2021, a tax is hereby imposed upon the Oklahoma taxable
14
15 income of every corporation doing business within this state or
15
16 deriving income from sources within this state in an amount equal to
16
17 four percent (4%) thereof.
17
18 There shall be no additional Oklahoma income tax imposed on
18
19 accumulated taxable income or on undistributed personal holding
19
20 company income as those terms are defined in the Internal Revenue
20
21 Code of 1986, as amended.
21
22 F. K. Certain foreign corporations. In lieu of the tax imposed
22
23 in the first paragraph of subsection D J of this section, for all
23
24 taxable years beginning after December 31, 2021, there shall be
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Req. No. 1410 Page 12
1 imposed on foreign corporations, as defined in the Internal Revenue
1
2 Code of 1986, as amended, a tax of four percent (4%) instead of
2
3 thirty percent (30%) as used in the Internal Revenue Code of 1986,
3
4 as amended, where such income is received from sources within
4
5 Oklahoma this state, in accordance with the provisions of the
5
6 Internal Revenue Code of 1986, as amended, and the Oklahoma Income
6
7 Tax Act.
7
8 Every payer of amounts covered by this subsection shall deduct
8
9 and withhold from such amounts paid each payee an amount equal to
9
10 four percent (4%) thereof. Every payer required to deduct and
10
11 withhold taxes under this subsection shall for each quarterly period
11
12 on or before the last day of the month following the close of each
12
13 such quarterly period, pay over the amount so withheld as taxes to
13
14 the Tax Commission, and shall file a return with each such payment.
14
15 Such return shall be in such form as the Tax Commission shall
15
16 prescribe. Every payer required under this subsection to deduct and
16
17 withhold a tax from a payee shall, as to the total amounts paid to
17
18 each payee during the calendar year, furnish to such payee, on or
18
19 before January 31, of the succeeding year, a written statement
19
20 showing the name of the payer, the name of the payee and the payee's
20
21 Social Security account number, if any, the total amounts paid
21
22 subject to taxation, the total amount deducted and withheld as tax,
22
23 and such other information as the Tax Commission may require. Any
23
24 payer who fails to withhold or pay to the Tax Commission any sums
24
Req. No. 1410 Page 13
1 herein required to be withheld or paid shall be personally and
1
2 individually liable therefor to the State of Oklahoma.
2
3 G. L. Fiduciaries. A tax is hereby imposed upon the Oklahoma
3
4 taxable income of every trust and estate at the same rates as are
4
5 provided in subsection B or C subsections B through H of this
5
6 section for single individuals. Fiduciaries are not allowed a
6
7 deduction for any federal income tax paid.
7
8 H. M. Tax rate tables. For all taxable years beginning after
8
9 December 31, 1991, in lieu of the tax imposed by subsection A, B or
9
10 C subsections A through G of this section, as applicable there is
10
11 hereby imposed for each taxable year on the taxable income of every
11
12 individual, whose taxable income for such taxable year does not
12
13 exceed the ceiling amount, a tax determined under tables, applicable
13
14 to such taxable year which shall be prescribed by the Tax Commission
14
15 and which shall be in such form as it determines appropriate. In
15
16 the table so prescribed, the amounts of the tax shall be computed on
16
17 the basis of the rates prescribed by subsection A, B or C
17
18 subsections A through G of this section. For purposes of this
18
19 subsection, the term "ceiling amount" means, with respect to any
19
20 taxpayer, the amount determined by the Tax Commission for the tax
20
21 rate category in which such taxpayer falls.
21
22 SECTION 2. This act shall become effective November 1, 2025.
22
23
23
24 60-1-1410 QD 12/30/2024 11:54:14 PM
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Req. No. 1410 Page 14Every fact on this page links to its source, starting with the official bill record.