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28	28	STATE OF OKLAHOMA
29	29
30	30	1st Session of the 60th Legislature (2025)
31	31
32	32	HOUSE BILL 1206 By: Maynard
33	33
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35	35
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37	37
38	38	AS INTRODUCED
39	39
40	40	An Act relating to revenue and taxation; amending 68
41	41	O.S. 2021, Section 2355, as last amended by Section
42	42	1, Chapter 27, 1st Extraordinar y Session, O.S.L. 2023
43	43	(68 O.S. Supp. 2024, Section 2355), which relates to
44	44	income tax imposed and classes of taxpayers;
45	45	modifying personal income tax rate for certain years;
46	46	and providing an effective date .
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54	54	BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
55	55	SECTION 1. AMENDATORY 68 O.S. 20 21, Section 2355, as
56	56	last amended by Section 1, Chapter 27, 1st Extraordinary Session,
57	57	O.S.L. 2023 (68 O.S. Supp. 2024, Section 2355), is amended to read
58	58	as follows:
59	59	Section 2355. A. Individuals. For all taxable years beginning
60	60	after December 31, 1998, and before January 1, 2006, a tax is hereby
61	61	imposed upon the Oklahoma taxable income of every resident or
62	62	nonresident individual, which tax shall be computed at the option of
63	63	the taxpayer under one of the two following methods:
64	64	1. METHOD 1.
65	65
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91	91	a. Single individuals and married individuals filing
92	92	separately not deducting federal income tax:
93	93	(1) 1/2% tax on first $1,000.00 or part thereof,
94	94	(2) 1% tax on next $1,500.00 or part thereof,
95	95	(3) 2% tax on next $1,250.00 or part thereof,
96	96	(4) 3% tax on next $1,150.00 or part thereof,
97	97	(5) 4% tax on next $1,300.00 or part thereof,
98	98	(6) 5% tax on next $1,500.00 or part thereof,
99	99	(7) 6% tax on next $2,300.00 or part thereof, and
100	100	(8) (a) for taxable years beginning after December
101	101	31, 1998, and before January 1, 2002, 6.75%
102	102	tax on the remainder,
103	103	(b) for taxable years beginning on or after
104	104	January 1, 2002, and before January 1, 2004,
105	105	7% tax on the remainder, and
106	106	(c) for taxable years beginning on or afte r
107	107	January 1, 2004, 6.65% tax on the remainder.
108	108	b. Married individuals filing jointly and surviving
109	109	spouse to the extent and in the manner that a
110	110	surviving spouse is permitted to file a joint return
111	111	under the provisions of the Internal Revenue Code and
112	112	heads of households as defined in the Internal Revenue
113	113	Code not deducting federal income tax:
114	114	(1) 1/2% tax on first $2,000.00 or part thereof,
115	115
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141	141	(2) 1% tax on next $3,000.00 or part thereof,
142	142	(3) 2% tax on next $2,500.00 or part thereof,
143	143	(4) 3% tax on next $2,300 .00 or part thereof,
144	144	(5) 4% tax on next $2,400.00 or part thereof,
145	145	(6) 5% tax on next $2,800.00 or part thereof,
146	146	(7) 6% tax on next $6,000.00 or part thereof, and
147	147	(8) (a) for taxable years beginning after December
148	148	31, 1998, and before January 1, 2002, 6.75 %
149	149	tax on the remainder,
150	150	(b) for taxable years beginning on or after
151	151	January 1, 2002, and before January 1, 2004,
152	152	7% tax on the remainder, and
153	153	(c) for taxable years beginning on or after
154	154	January 1, 2004, 6.65% tax on the remainder.
155	155	2. METHOD 2.
156	156	a. Single individuals and married individuals filing
157	157	separately deducting federal income tax:
158	158	(1) 1/2% tax on first $1,000.00 or part thereof,
159	159	(2) 1% tax on next $1,500.00 or part thereof,
160	160	(3) 2% tax on next $1,250.00 or part thereof,
161	161	(4) 3% tax on next $1,150.00 or part thereof,
162	162	(5) 4% tax on next $1,200.00 or part thereof,
163	163	(6) 5% tax on next $1,400.00 or part thereof,
164	164	(7) 6% tax on next $1,500.00 or part thereof,
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191	191	(8) 7% tax on next $1,500.00 or part thereof,
192	192	(9) 8% tax on next $2,000.00 or part thereof,
193	193	(10) 9% tax on next $3,500.00 or part thereof, and
194	194	(11) 10% tax on the remainder.
195	195	b. Married individuals filing jointly and surviving
196	196	spouse to the extent and in the manner that a
197	197	surviving spouse is permitted to file a joint return
198	198	under the provisions of the Interna l Revenue Code and
199	199	heads of households as defined in the Internal Revenue
200	200	Code deducting federal income tax:
201	201	(1) 1/2% tax on the first $2,000.00 or part thereof,
202	202	(2) 1% tax on the next $3,000.00 or part thereof,
203	203	(3) 2% tax on the next $2,500.00 or part the reof,
204	204	(4) 3% tax on the next $1,400.00 or part thereof,
205	205	(5) 4% tax on the next $1,500.00 or part thereof,
206	206	(6) 5% tax on the next $1,600.00 or part thereof,
207	207	(7) 6% tax on the next $1,250.00 or part thereof,
208	208	(8) 7% tax on the next $1,750.00 or part thereof,
209	209	(9) 8% tax on the next $3,000.00 or part thereof,
210	210	(10) 9% tax on the next $6,0 00.00 or part thereof, and
211	211	(11) 10% tax on the remainder.
212	212	B. Individuals. For all taxable years beginning on or after
213	213	January 1, 2008, and ending any tax year which begins afte r December
214	214	31, 2015, for which the determination required pursuant to Sections
215	215
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241	241	4 and 5 of this act is made by the State Board of Equalization, a
242	242	tax is hereby imposed upon the Oklahoma taxable income of every
243	243	resident or nonresident individual, which tax s hall be computed as
244	244	follows:
245	245	1. Single individuals and married individuals fi ling
246	246	separately:
247	247	(a) 1/2% tax on first $1,000.00 or part thereof,
248	248	(b) 1% tax on next $1,500.00 or part thereof,
249	249	(c) 2% tax on next $1,250.00 or part thereof,
250	250	(d) 3% tax on next $1,150.00 or part thereof,
251	251	(e) 4% tax on next $2,300.00 or part thereof,
252	252	(f) 5% tax on next $1,500.00 or part thereof,
253	253	(g) 5.50% tax on the remainder for the 2008 tax year and
254	254	any subsequent tax year unless the rate prescribed by
255	255	subparagraph (h) of this pa ragraph is in effect, and
256	256	(h) 5.25% tax on the remainder for the 2009 and subs equent
257	257	tax years. The decrease in the top marginal
258	258	individual income tax rate otherwise authorized by
259	259	this subparagraph shall be contingent upon the
260	260	determination required to be made by the State Board
261	261	of Equalization pursuant to Section 2355.1A of this
262	262	title.
263	263	2. Married individuals filing jointly and surviving spouse to
264	264	the extent and in the manner that a surviving spouse is permitted to
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291	291	file a joint return under the provisions of the Internal Revenue
292	292	Code and heads of households as defined in the Intern al Revenue
293	293	Code:
294	294	(a) 1/2% tax on first $2,000.00 or part thereof,
295	295	(b) 1% tax on next $3,000.00 or part thereof,
296	296	(c) 2% tax on next $2,500.00 or part thereof,
297	297	(d) 3% tax on next $2,300.00 or part thereof,
298	298	(e) 4% tax on next $2,400.00 or part thereof,
299	299	(f) 5% tax on next $2,800.00 or part thereof,
300	300	(g) 5.50% tax on the remainder for the 2008 tax year and
301	301	any subsequent tax year unless the rate prescribed by
302	302	subparagraph (h) of this pa ragraph is in effect, and
303	303	(h) 5.25% tax on the remainder for the 2009 and subs equent
304	304	tax years. The decrease in the top marginal
305	305	individual income tax rate otherwise authorized by
306	306	this subparagraph shall be contingent upon the
307	307	determination required to be made by the State Board
308	308	of Equalization pursuant to Section 2355.1A of this
309	309	title.
310	310	C. Individuals. For all taxable years beginning on or after
311	311	January 1, 2024, and ending any tax year which begins after December
312	312	31, 2025, a tax is hereby imposed upon th e Oklahoma taxable income
313	313	of every resident or nonresident individual, which t ax shall be
314	314	computed as follows:
315	315
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341	341	1. Single individuals and married individuals filing
342	342	separately:
343	343	(a) 0.25% tax on first $1,000.00 or part thereof,
344	344	(b) 0.75% tax on next $1,500. 00 or part thereof,
345	345	(c) 1.75% tax on next $1,250.00 or part thereof,
346	346	(d) 2.75% tax on next $1,150.00 or part thereof,
347	347	(e) 3.75% tax on next $2,300.00 or part thereof,
348	348	(f) 4.75% tax on the remainder.
349	349	2. Married individuals filing jointly and surviving spou se to
350	350	the extent and in the manner that a surviving spouse is permitted to
351	351	file a joint return under the provisions of the Internal Revenue
352	352	Code and heads of households as defined in the Internal Revenue
353	353	Code:
354	354	(a) 0.25% tax on first $2,000.00 or part there of,
355	355	(b) 0.75% tax on next $3,000.00 or part thereof,
356	356	(c) 1.75% tax on next $2,500.00 or part thereof,
357	357	(d) 2.75% tax on next $2,300.00 or part thereof,
358	358	(e) 3.75% tax on next $4,600.00 or part thereof,
359	359	(f) 4.75% tax on the remainder.
360	360	No deduction for federal income taxes paid shall be allowed to
361	361	any taxpayer to arrive at taxable incom e.
362	362	D. Individuals. For all taxable years beginning on or after
363	363	January 1, 2026, a tax is hereby imposed upon the Oklahoma taxable
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390	390	income of every resident or nonresident indivi dual, which tax shall
391	391	be computed as follows:
392	392	1. Single individuals and married individuals filing
393	393	separately:
394	394	(a) 0.0% tax on first $1,000.00 or part thereof,
395	395	(b) 0.75% tax on next $1,500.00 or part thereof,
396	396	(c) 1.75% tax on next $1,250.00 or part thereo f,
397	397	(d) 2.75% tax on next $1,150.00 or part thereof,
398	398	(e) 3.75% tax on next $2,3 00.00 or part thereof,
399	399	(f) 4.75% tax on the remainder.
400	400	2. Married individuals filing jointly and surviving spouse to
401	401	the extent and in the manner that a surviving spouse is perm itted to
402	402	file a joint return under the provisions of the Internal Revenue
403	403	Code and heads of households as defined in the Internal Revenue
404	404	Code:
405	405	(a) 0.0% tax on first $2,000.00 or part thereof,
406	406	(b) 0.75% tax on next $3,000.00 or part thereof,
407	407	(c) 1.75% tax on next $2,500.00 or part thereof,
408	408	(d) 2.75% tax on next $2,300.00 or part the reof,
409	409	(e) 3.75% tax on next $4,600.00 or part thereof,
410	410	(f) 4.75% tax on the remainder.
411	411	No deduction for federal income taxes paid shall be allowed to
412	412	any taxpayer to arrive at ta xable income.
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439	439	E. Nonresident aliens. In lieu of the rates set forth in
440	440	subsection A above, there shall be imposed on nonresident aliens, as
441	441	defined in the Internal Revenue Code, a tax of eight percent (8%)
442	442	instead of thirty percent (30%) as used in the I nternal Revenue
443	443	Code, with respect to the Oklahoma taxable income of such
444	444	nonresident aliens as determined under the provision of the Oklahoma
445	445	Income Tax Act.
446	446	Every payer of amounts covered by this subsection shall deduct
447	447	and withhold from such amounts pai d each payee an amount equal to
448	448	eight percent (8%) thereof. Every payer required to deduct and
449	449	withhold taxes under this subsection shall for each quarterly period
450	450	on or before the last day of the month following the close of each
451	451	such quarterly period, p ay over the amount so withheld as taxes to
452	452	the Tax Commission, and shall file a return with each such payment.
453	453	Such return shall be in such form as the Tax Commission shall
454	454	prescribe. Every payer required under this subsection to deduct and
455	455	withhold a tax from a payee shall, as to the total amounts paid to
456	456	each payee during the calendar year, furnish to such payee, on or
457	457	before January 31, of the succeeding year, a written statement
458	458	showing the name of the payer, the name of the payee and the payee 's
459	459	Social Security account number, if any, the total amount paid
460	460	subject to taxation, and the total amount deducted and withheld as
461	461	tax and such other information as the Tax Commission may require.
462	462	Any payer who fails to withhold or pay to the Tax Commission any
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489	489	sums herein required to be withheld or paid shall be personally and
490	490	individually liable therefor to the State of Oklahoma.
491	491	E. F. Corporations. For all taxable years beginning after
492	492	December 31, 2021, a tax is hereby imposed upon the Oklahoma taxable
493	493	income of every corporation doing business within this state or
494	494	deriving income from sources within this state in an amount equal to
495	495	four percent (4%) thereof.
496	496	There shall be no additional Oklahoma income tax imposed on
497	497	accumulated taxable income or on undist ributed personal holding
498	498	company income as those terms are defined in the Internal Revenue
499	499	Code.
500	500	F. G. Certain foreign corporations. In lieu of the tax imposed
501	501	in the first paragraph of subsection D E of this section, for all
502	502	taxable years beginning afte r December 31, 2021, there shall be
503	503	imposed on foreign corporations, as define d in the Internal Revenue
504	504	Code, a tax of four percent (4%) instead of thirty percent (30%) as
505	505	used in the Internal Revenue Code, where such income is received
506	506	from sources within Oklahoma, in accordance with the provisions of
507	507	the Internal Revenue Code and the Oklahoma Income Tax Act.
508	508	Every payer of amounts covered by this subsection shall deduct
509	509	and withhold from such amounts paid each payee an amount equal to
510	510	four percent (4%) th ereof. Every payer required to deduct and
511	511	withhold taxes under this subsectio n shall for each quarterly period
512	512	on or before the last day of the month following the close of each
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539	539	such quarterly period, pay over the amount so withheld as taxes to
540	540	the Tax Commission, and shall file a return with each such payment.
541	541	Such return shall be in such form as the Tax Commission shall
542	542	prescribe. Every payer required under this subsection to deduct and
543	543	withhold a tax from a payee shall, as to the total amounts paid to
544	544	each payee during the calendar year, furnish to such payee, on or
545	545	before January 31, of the succeeding year, a written statement
546	546	showing the name of the payer, the name of the payee and the payee 's
547	547	Social Security account number, if any, the total amounts paid
548	548	subject to taxation, the total amount deducted and withheld as tax
549	549	and such other information as the Tax Commission may require. Any
550	550	payer who fails to withhold or pay to the Tax Commission any sums
551	551	herein required to be withheld or paid shall be pe rsonally and
552	552	individually liable therefor to the State of Oklahoma.
553	553	G. H. Fiduciaries. A tax is hereby imposed upon the Oklahoma
554	554	taxable income of every trust and estate at the same rates as are
555	555	provided in subsection B , or C, or D of this section for si ngle
556	556	individuals. Fiduciaries are not allowed a deduction for any
557	557	federal income tax paid.
558	558	H. I. Tax rate tables. For all taxable years beginning after
559	559	December 31, 1991, in lieu of the tax imposed by subsection A, B or
560	560	C of this section, as applicable there is hereby imposed for each
561	561	taxable year on the taxable income of every i ndividual, whose
562	562	taxable income for such taxable year does not exceed the ceiling
563	563
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589	589	amount, a tax determined under tables, applicable to such taxable
590	590	year which shall be prescribed by the Tax Commission and which shall
591	591	be in such form as it determines appropriate. In the table so
592	592	prescribed, the amounts of the tax shall be computed on the basis of
593	593	the rates prescribed by subsection A, B or C of this section. For
594	594	purposes of this subsection, the term "ceiling amount" means, with
595	595	respect to any taxpayer, the amount determined by the Tax Commission
596	596	for the tax rate category in which such taxpayer falls.
597	597	SECTION 2. This act shall become effective November 1, 2025.
598	598
599	599	60-1-10178 AO 01/07/25

Oklahoma 2025 Regular Session

Oklahoma House Bill HB1206 Compare Versions