Old	New	Differences
1	1
2	2	1
3	3	2
4	4	3
5	5	4
6	6	5
7	7	6
8	8	7
9	9	8
10	10	9
11	11	10
12	12	11
13	13	12
14	14	13
15	15	14
16	16	15
17	17	16
18	18	17
19	19	18
20	20	19
21	21	20
22	22	21
23	23	22
24	24	23
25	25	24
26	26
27	27	STATE OF OKLAHOMA
28	28
29	29	1st Session of the 60th Legislature (2025)
30	30
31	31	HOUSE BILL 1209 By: Maynard
32	32
33	33
34	34
35	35
36	36
37	37	AS INTRODUCED
38	38
39	39	An Act relating to revenue and taxation; amending 68
40	40	O.S. 2021, Section 2355, as last amended by Section
41	41	1, Chapter 27, 1st Extraordinar y Session, O.S.L. 2023
42	42	(68 O.S. Supp. 2024, Section 2355), which relates to
43	43	income tax imposed and classes of taxpayer; modifying
44	44	personal income tax rate for certain years; and
45	45	providing an effective date.
46	46
47	47
48	48
49	49
50	50
51	51
52	52
53	53	BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
54	54	SECTION 1. AMENDATORY 68 O.S. 202 1, Section 2355, as
55	55	last amended by Section 1, Chapter 27, 1st Extraordinary Session,
56	56	O.S.L. 2023 (68 O.S. Supp. 2024, Section 2355), is amended to read
57	57	as follows:
58	58	Section 2355. A. Individuals. For all taxable years beginning
59	59	after December 31, 1998, and before January 1, 2006, a tax is hereby
60	60	imposed upon the Oklahoma taxable income of every resident or
61	61	nonresident individual, which tax shall be computed at the option of
62	62	the taxpayer under one of the two following methods:
63	63	1. METHOD 1.
64	64	1
65	65	2
66	66	3
67	67	4
68	68	5
69	69	6
70	70	7
71	71	8
72	72	9
73	73	10
74	74	11
75	75	12
76	76	13
77	77	14
78	78	15
79	79	16
80	80	17
81	81	18
82	82	19
83	83	20
84	84	21
85	85	22
86	86	23
87	87	24
88	88
89	89	a. Single individuals and married individuals filing
90	90	separately not deducting federal income tax:
91	91	(1) 1/2% tax on first $1,000.00 or part thereof,
92	92	(2) 1% tax on next $1,500.00 or part thereof,
93	93	(3) 2% tax on next $1,250.00 or part thereof,
94	94	(4) 3% tax on next $1,150.00 or part thereof,
95	95	(5) 4% tax on next $1,300.00 or part thereof,
96	96	(6) 5% tax on next $1,500.00 or part thereof,
97	97	(7) 6% tax on next $2,300.00 or part thereof, and
98	98	(8) (a) for taxable years beginning after December
99	99	31, 1998, and before January 1, 2002, 6.75%
100	100	tax on the remainder,
101	101	(b) for taxable years beginning on or after
102	102	January 1, 2002, and before January 1, 2004,
103	103	7% tax on the remainder, and
104	104	(c) for taxable years beginning on or after
105	105	January 1, 2004, 6.65% tax on the remainder.
106	106	b. Married individuals filing jointly and surviving
107	107	spouse to the extent and in the manner that a
108	108	surviving spouse is permitted to file a joint return
109	109	under the provisions of the Internal Revenue Code and
110	110	heads of households as defined in the Internal Revenue
111	111	Code not deducting federal i ncome tax:
112	112	(1) 1/2% tax on first $2,000.00 or part thereof,
113	113	1
114	114	2
115	115	3
116	116	4
117	117	5
118	118	6
119	119	7
120	120	8
121	121	9
122	122	10
123	123	11
124	124	12
125	125	13
126	126	14
127	127	15
128	128	16
129	129	17
130	130	18
131	131	19
132	132	20
133	133	21
134	134	22
135	135	23
136	136	24
137	137
138	138	(2) 1% tax on next $3,000.00 or part thereof,
139	139	(3) 2% tax on next $2,500.00 or part thereof,
140	140	(4) 3% tax on next $2,300. 00 or part thereof,
141	141	(5) 4% tax on next $2,400.00 or part thereof,
142	142	(6) 5% tax on next $2,800.00 or part thereof,
143	143	(7) 6% tax on next $6,000.00 or part thereof, and
144	144	(8) (a) for taxable years beginning after December
145	145	31, 1998, and before January 1, 2002, 6.75%
146	146	tax on the remainder,
147	147	(b) for taxable years beginning on or after
148	148	January 1, 2002, and before January 1, 2004,
149	149	7% tax on the remainder, and
150	150	(c) for taxable years beginning on or after
151	151	January 1, 2004, 6.65% tax on the remainder.
152	152	2. METHOD 2.
153	153	a. Single individuals and married individuals filing
154	154	separately deducting federal income tax:
155	155	(1) 1/2% tax on first $1,000.00 or part thereof,
156	156	(2) 1% tax on next $1,500.00 or part thereof,
157	157	(3) 2% tax on next $1,250.00 or part thereof,
158	158	(4) 3% tax on next $1,150.00 or p art thereof,
159	159	(5) 4% tax on next $1,200.00 or part thereof,
160	160	(6) 5% tax on next $1,400.00 or part thereof,
161	161	(7) 6% tax on next $1,500.00 or part thereof,
162	162	1
163	163	2
164	164	3
165	165	4
166	166	5
167	167	6
168	168	7
169	169	8
170	170	9
171	171	10
172	172	11
173	173	12
174	174	13
175	175	14
176	176	15
177	177	16
178	178	17
179	179	18
180	180	19
181	181	20
182	182	21
183	183	22
184	184	23
185	185	24
186	186
187	187	(8) 7% tax on next $1,500.00 or part thereof,
188	188	(9) 8% tax on next $2,000.00 or part thereof,
189	189	(10) 9% tax on next $3,500.00 or part thereof, and
190	190	(11) 10% tax on the remainder.
191	191	b. Married individuals filing jointly and surviving
192	192	spouse to the extent and in the manner that a
193	193	surviving spouse is permitted to file a joint return
194	194	under the provisions of the Internal Revenue Code and
195	195	heads of households as defined in the Internal Revenue
196	196	Code deducting federal income tax:
197	197	(1) 1/2% tax on the first $2,000.00 or part thereof,
198	198	(2) 1% tax on the next $3,000.00 or part thereof,
199	199	(3) 2% tax on the next $2,500.00 or part ther eof,
200	200	(4) 3% tax on the next $1,400.00 or part thereof,
201	201	(5) 4% tax on the next $1,500.00 or part thereof,
202	202	(6) 5% tax on the next $1,600.00 or part thereof,
203	203	(7) 6% tax on the next $1,250.00 or part thereof,
204	204	(8) 7% tax on the next $1,750.00 or part thereof,
205	205	(9) 8% tax on the next $3,000.00 or part thereof,
206	206	(10) 9% tax on the next $6,00 0.00 or part thereof, and
207	207	(11) 10% tax on the remainder.
208	208	B. Individuals. For all taxable years beginning on or after
209	209	January 1, 2008, and ending any tax year which begins after December
210	210	31, 2015, for which the determination required pursuant to Sections
211	211	1
212	212	2
213	213	3
214	214	4
215	215	5
216	216	6
217	217	7
218	218	8
219	219	9
220	220	10
221	221	11
222	222	12
223	223	13
224	224	14
225	225	15
226	226	16
227	227	17
228	228	18
229	229	19
230	230	20
231	231	21
232	232	22
233	233	23
234	234	24
235	235
236	236	4 and 5 of this act is made by the State Board of Equalization, a
237	237	tax is hereby imposed upon the Oklahoma taxable income of every
238	238	resident or nonresident individual, which tax sh all be computed as
239	239	follows:
240	240	1. Single individuals and married individuals fil ing
241	241	separately:
242	242	(a) 1/2% tax on first $1,000.00 or part thereof,
243	243	(b) 1% tax on next $1,500.00 or part thereof,
244	244	(c) 2% tax on next $1,250.00 or part thereof,
245	245	(d) 3% tax on next $1,150.00 or part thereof,
246	246	(e) 4% tax on next $2,300.00 or part thereof,
247	247	(f) 5% tax on next $1,500.00 or part thereof,
248	248	(g) 5.50% tax on the remainder for the 2008 tax year and
249	249	any subsequent tax year unless the rate prescribed by
250	250	subparagraph (h) of this par agraph is in effect, and
251	251	(h) 5.25% tax on the remainder for the 2009 and subse quent
252	252	tax years. The decrease in the top marginal
253	253	individual income tax rate otherwise authorized by
254	254	this subparagraph shall be contingent upon the
255	255	determination required to be made by the State Board
256	256	of Equalization pursuant to Section 2355.1A of this
257	257	title.
258	258	2. Married individuals filing jointly and surviving spouse to
259	259	the extent and in the manner that a surviving spouse is permitted to
260	260	1
261	261	2
262	262	3
263	263	4
264	264	5
265	265	6
266	266	7
267	267	8
268	268	9
269	269	10
270	270	11
271	271	12
272	272	13
273	273	14
274	274	15
275	275	16
276	276	17
277	277	18
278	278	19
279	279	20
280	280	21
281	281	22
282	282	23
283	283	24
284	284
285	285	file a joint return under the provisions of the Internal Revenue
286	286	Code and heads of households as defined in the Interna l Revenue
287	287	Code:
288	288	(a) 1/2% tax on first $2,000.00 or part thereof,
289	289	(b) 1% tax on next $3,000.00 or part thereof,
290	290	(c) 2% tax on next $2,500.00 or part thereof,
291	291	(d) 3% tax on next $2,300.00 or part thereof,
292	292	(e) 4% tax on next $2,400.00 or part thereof,
293	293	(f) 5% tax on next $2,800.00 or part thereof,
294	294	(g) 5.50% tax on the remainder for the 2008 tax year and
295	295	any subsequent tax year unless the rate prescribed by
296	296	subparagraph (h) of this par agraph is in effect, and
297	297	(h) 5.25% tax on the remainder for the 2009 and subse quent
298	298	tax years. The decrease in the top marginal
299	299	individual income tax rate otherwise authorized by
300	300	this subparagraph shall be contingent upon the
301	301	determination required to be made by the State Board
302	302	of Equalization pursuant to Section 2355.1A of this
303	303	title.
304	304	C. Individuals. For all taxable years beginning on or after
305	305	January 1, 2024, and ending any tax year which begins after December
306	306	31, 2025, a tax is hereby imposed upon the Oklahoma taxable income
307	307	of every resident or nonresident individual, which ta x shall be
308	308	computed as follows:
309	309	1
310	310	2
311	311	3
312	312	4
313	313	5
314	314	6
315	315	7
316	316	8
317	317	9
318	318	10
319	319	11
320	320	12
321	321	13
322	322	14
323	323	15
324	324	16
325	325	17
326	326	18
327	327	19
328	328	20
329	329	21
330	330	22
331	331	23
332	332	24
333	333
334	334	1. Single individuals and married individuals filing
335	335	separately:
336	336	(a) 0.25% tax on first $1,000.00 or part thereof,
337	337	(b) 0.75% tax on next $1,500.0 0 or part thereof,
338	338	(c) 1.75% tax on next $1,250.00 or part thereof,
339	339	(d) 2.75% tax on next $1,150.00 or part thereof,
340	340	(e) 3.75% tax on next $2,300.00 or part thereof,
341	341	(f) 4.75% tax on the remainder.
342	342	2. Married individuals filing jointly and surviving spous e to
343	343	the extent and in the manner that a surviving spouse is permitted to
344	344	file a joint return under the provisions of the Internal Revenue
345	345	Code and heads of households as defined in the Internal Revenue
346	346	Code:
347	347	(a) 0.25% tax on first $2,000.00 or part thereo f,
348	348	(b) 0.75% tax on next $3,000.00 or part thereof,
349	349	(c) 1.75% tax on next $2,500.00 or part thereof,
350	350	(d) 2.75% tax on next $2,300.00 or part thereof,
351	351	(e) 3.75% tax on next $4,600.00 or part thereof,
352	352	(f) 4.75% tax on the remainder.
353	353	No deduction for federal income taxes paid shall be allowed to
354	354	any taxpayer to arrive at taxable income .
355	355	D. Individuals. For all taxable years beginning on or after
356	356	January 1, 2026, a tax is hereby imposed upon the Oklahoma taxable
357	357	1
358	358	2
359	359	3
360	360	4
361	361	5
362	362	6
363	363	7
364	364	8
365	365	9
366	366	10
367	367	11
368	368	12
369	369	13
370	370	14
371	371	15
372	372	16
373	373	17
374	374	18
375	375	19
376	376	20
377	377	21
378	378	22
379	379	23
380	380	24
381	381
382	382	income of every resident or nonresident individ ual, which tax shall
383	383	be computed as follows:
384	384	1. Single individuals and married individuals filing
385	385	separately:
386	386	(a) 0.0% tax on first $1,000.00 or part thereof,
387	387	(b) 0.0% tax on next $1,500.00 or part thereof,
388	388	(c) 0.0% tax on next $1,250.00 or part thereof,
389	389	(d) 0.0% tax on next $1,150.00 or part thereof,
390	390	(e) 3.75% tax on next $2,300.0 0 or part thereof,
391	391	(f) 4.75% tax on the remainder.
392	392	2. Married individuals filing jointly and surviving spouse to
393	393	the extent and in the manner that a surviving spouse is permitte d to
394	394	file a joint return under the provisions of the Internal Revenue
395	395	Code and heads of households as defined in the Internal Revenue
396	396	Code:
397	397	(a) 0.0% tax on first $2,000.00 or part thereof,
398	398	(b) 0.0% tax on next $3,000.00 or part thereof,
399	399	(c) 0.0% tax on next $2,500.00 or part thereof,
400	400	(d) 0.0% tax on next $2,300.00 or part thereof,
401	401	(e) 3.75% tax on next $4,600.00 or part thereof,
402	402	(f) 4.75% tax on the remainder.
403	403	No deduction for federal income taxes paid shall be allowed to
404	404	any taxpayer to arrive at taxable i ncome.
405	405	1
406	406	2
407	407	3
408	408	4
409	409	5
410	410	6
411	411	7
412	412	8
413	413	9
414	414	10
415	415	11
416	416	12
417	417	13
418	418	14
419	419	15
420	420	16
421	421	17
422	422	18
423	423	19
424	424	20
425	425	21
426	426	22
427	427	23
428	428	24
429	429
430	430	D. E. Nonresident aliens. In lieu of the rates set forth in
431	431	subsection A above, there shall be imposed on nonresident aliens, as
432	432	defined in the Internal Revenue Code, a tax of eight percent (8%)
433	433	instead of thirty percent (30%) as used in the Inter nal Revenue
434	434	Code, with respect to the Oklahoma taxable income of such
435	435	nonresident aliens as determined under the provision of the Oklahoma
436	436	Income Tax Act.
437	437	Every payer of amounts covered by this subsection shall deduct
438	438	and withhold from such amounts paid ea ch payee an amount equal to
439	439	eight percent (8%) thereof. Every payer required to deduct and
440	440	withhold taxes under this subsection shall for each quarterly period
441	441	on or before the last day of the month following the close of each
442	442	such quarterly period, pay o ver the amount so withheld as taxes to
443	443	the Tax Commission, and shall file a re turn with each such payment.
444	444	Such return shall be in such form as the Tax Commission shall
445	445	prescribe. Every payer required under this subsection to deduct and
446	446	withhold a tax from a payee shall, as to the total amounts paid to
447	447	each payee during the calendar year, furnish to such payee, on or
448	448	before January 31, of the succeeding year, a written statement
449	449	showing the name of the payer, the name of the payee and the payee 's
450	450	Social Security account number, if any, the total amount paid
451	451	subject to taxation, and the total amount deducted and withheld as
452	452	tax and such other information as the Tax Commission may require.
453	453	Any payer who fails to withhold or pay to the Tax Commission any
454	454	1
455	455	2
456	456	3
457	457	4
458	458	5
459	459	6
460	460	7
461	461	8
462	462	9
463	463	10
464	464	11
465	465	12
466	466	13
467	467	14
468	468	15
469	469	16
470	470	17
471	471	18
472	472	19
473	473	20
474	474	21
475	475	22
476	476	23
477	477	24
478	478
479	479	sums herein required to be withheld or paid shall be personally and
480	480	individually liable therefor to the State of Oklahoma.
481	481	E. F. Corporations. For all taxable years beginning after
482	482	December 31, 2021, a tax is hereby imposed upon the Oklahoma taxable
483	483	income of every corporation doing business within this state or
484	484	deriving income from sources within this state in an amount equal to
485	485	four percent (4%) thereof.
486	486	There shall be no additional Oklahoma income tax imposed on
487	487	accumulated taxable income or on undistribu ted personal holding
488	488	company income as those terms are defined in the Internal Revenue
489	489	Code.
490	490	F. G. Certain foreign corporations. In lieu of the tax imposed
491	491	in the first paragraph of subsection D E of this section, for all
492	492	taxable years beginning after De cember 31, 2021, there shall be
493	493	imposed on foreign corporations, as defined in the Internal Revenue
494	494	Code, a tax of four percent (4%) instead of thirty percent (30%) as
495	495	used in the Internal Revenue Code, where such income is received
496	496	from sources within Okl ahoma, in accordance with the provisions of
497	497	the Internal Revenue Code and the Oklahoma Income Tax Act.
498	498	Every payer of amounts covered by this subsection shall deduct
499	499	and withhold from such amounts paid each payee an amount equal to
500	500	four percent (4%) thereo f. Every payer required to deduct and
501	501	withhold taxes under this subsection sh all for each quarterly period
502	502	on or before the last day of the month following the close of each
503	503	1
504	504	2
505	505	3
506	506	4
507	507	5
508	508	6
509	509	7
510	510	8
511	511	9
512	512	10
513	513	11
514	514	12
515	515	13
516	516	14
517	517	15
518	518	16
519	519	17
520	520	18
521	521	19
522	522	20
523	523	21
524	524	22
525	525	23
526	526	24
527	527
528	528	such quarterly period, pay over the amount so withheld as taxes to
529	529	the Tax Commission, and shall file a return with each such payment.
530	530	Such return shall be in such form as the Tax Commission shall
531	531	prescribe. Every payer required under this subsection to deduct and
532	532	withhold a tax from a payee shall, as to the total amounts paid to
533	533	each payee during the calendar year, furnish to such payee, on or
534	534	before January 31, of the succeeding year, a written statement
535	535	showing the name of the payer, the name of the payee and the payee 's
536	536	Social Security account number, if any, the total amounts pai d
537	537	subject to taxation, the total amount deducted and withheld as tax
538	538	and such other information as the Tax Commission may require. Any
539	539	payer who fails to withhold or pay to the Tax Commission any sums
540	540	herein required to be withheld or paid shall be person ally and
541	541	individually liable therefor to the State of Oklahoma.
542	542	G. H. Fiduciaries. A tax is hereby imposed upon the Oklahoma
543	543	taxable income of every trust and estate at the same rates as are
544	544	provided in subsection subsections B or, C, or D of this section for
545	545	single individuals. Fiduciaries are not allowed a deduction for any
546	546	federal income tax paid.
547	547	H. I. Tax rate tables. For all taxable years beginning after
548	548	December 31, 1991, in lieu of the tax imposed by subsection A, B or
549	549	C of this section, as app licable there is hereby imposed for each
550	550	taxable year on the taxable income of every individual, whose
551	551	taxable income for such taxable year does not exceed the ceiling
552	552	1
553	553	2
554	554	3
555	555	4
556	556	5
557	557	6
558	558	7
559	559	8
560	560	9
561	561	10
562	562	11
563	563	12
564	564	13
565	565	14
566	566	15
567	567	16
568	568	17
569	569	18
570	570	19
571	571	20
572	572	21
573	573	22
574	574	23
575	575	24
576	576
577	577	amount, a tax determined under tables, applicable to such taxable
578	578	year which shall be pr escribed by the Tax Commission and which shall
579	579	be in such form as it determines appropriate. In the table so
580	580	prescribed, the amounts of the tax shall be computed on the basis of
581	581	the rates prescribed by subsection A, B or C of this section. For
582	582	purposes of this subsection, the term "ceiling amount" means, with
583	583	respect to any taxpay er, the amount determined by the Tax Commission
584	584	for the tax rate category in which such taxpayer falls.
585	585	SECTION 2. This act shall become effective November 1, 20 25.
586	586
587	587	60-1-10181 AO 01/11/25

Oklahoma 2025 Regular Session

Oklahoma House Bill HB1209 Compare Versions