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
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26	26
27	27	STATE OF OKLAHOMA
28	28
29	29	1st Session of the 60th Legislature (2025)
30	30
31	31	HOUSE BILL 1267 By: Eaves
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 Extraordinary 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 tax payers;
44	44	modifying personal income tax rate for certain years;
45	45	and providing an effective date.
46	46
47	47
48	48
49	49
50	50
51	51	BE IT ENACTED BY THE PEOPLE OF THE ST ATE OF OKLAHOMA:
52	52	SECTION 1. AMENDATORY 68 O.S. 2021, Section 2355, as
53	53	last amended by Section 1, Chapter 27, 1st Extraordinary Session,
54	54	O.S.L. 2023 (68 O.S. Supp. 2024, Section 2355), is amended to read
55	55	as follows:
56	56	Section 2355. Tax imposed - Classes of taxpayers.
57	57	A. Individuals. For all taxable years beginning after December
58	58	31, 1998, and before January 1, 2006, a tax is hereby imposed upon
59	59	the Oklahoma taxable income of every resident or nonresident
60	60	individual, which tax shall be computed at the option of the
61	61	taxpayer under one of the two following meth ods:
62	62	1. METHOD 1.
63	63	1
64	64	2
65	65	3
66	66	4
67	67	5
68	68	6
69	69	7
70	70	8
71	71	9
72	72	10
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75	75	13
76	76	14
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81	81	19
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83	83	21
84	84	22
85	85	23
86	86	24
87	87
88	88	a. Single individuals and married individuals filing
89	89	separately not deducting federal income tax:
90	90	(1) 1/2% tax on first $1,000.00 or part thereof,
91	91	(2) 1% tax on next $1,500.00 or part thereof,
92	92	(3) 2% tax on next $1,250.00 or part thereof,
93	93	(4) 3% tax on next $1,150.00 or part thereof,
94	94	(5) 4% tax on next $1,300.00 or part thereof,
95	95	(6) 5% tax on next $1,500.00 or part thereof,
96	96	(7) 6% tax on next $2,300.00 or part t hereof, and
97	97	(8) (a) for taxable years beginning after December
98	98	31, 1998, and before January 1, 2002, 6.75%
99	99	tax on the remainder,
100	100	(b) for taxable years beginning on or after
101	101	January 1, 2002, and before January 1, 2004,
102	102	7% tax on the remainder, and
103	103	(c) for taxable years beginning on or after
104	104	January 1, 2004, 6.65% tax on the remainder.
105	105	b. Married individuals filing jointly and surviving
106	106	spouse to the extent and in the manner that a
107	107	surviving spouse is permitted to file a joint return
108	108	under the provisions of t he Internal Revenue Code and
109	109	heads of households as defined in the Internal Re venue
110	110	Code not deducting federal income tax:
111	111	(1) 1/2% tax on first $2,000.00 or part thereof,
112	112	1
113	113	2
114	114	3
115	115	4
116	116	5
117	117	6
118	118	7
119	119	8
120	120	9
121	121	10
122	122	11
123	123	12
124	124	13
125	125	14
126	126	15
127	127	16
128	128	17
129	129	18
130	130	19
131	131	20
132	132	21
133	133	22
134	134	23
135	135	24
136	136
137	137	(2) 1% tax on next $3,000.00 or part thereof,
138	138	(3) 2% tax on next $2,500.00 or part t hereof,
139	139	(4) 3% tax on next $2,300.00 or part thereof,
140	140	(5) 4% tax on next $2,400.00 or part thereof,
141	141	(6) 5% tax on next $2,800.00 or part thereof,
142	142	(7) 6% tax on next $6,000.00 or part thereof, and
143	143	(8) (a) for taxable years beginning after December
144	144	31, 1998, and before January 1, 2002, 6.75%
145	145	tax on the remainder,
146	146	(b) for taxable years beginning on or after
147	147	January 1, 2002, and before January 1, 2004,
148	148	7% tax on the remainder, and
149	149	(c) for taxable years beginning on or after
150	150	January 1, 2004, 6.65% tax on the rem ainder.
151	151	2. METHOD 2.
152	152	a. Single individuals and married individuals filing
153	153	separately deducting federal income tax:
154	154	(1) 1/2% tax on first $1,000.00 or part thereof,
155	155	(2) 1% tax on next $1,500.00 or part thereof,
156	156	(3) 2% tax on next $1,250.00 or part thereof,
157	157	(4) 3% tax on next $1,150.00 or part thereof,
158	158	(5) 4% tax on next $1,200.00 or part thereof,
159	159	(6) 5% tax on next $1,400.00 or part thereof,
160	160	(7) 6% tax on next $1,500.00 or part thereof,
161	161	1
162	162	2
163	163	3
164	164	4
165	165	5
166	166	6
167	167	7
168	168	8
169	169	9
170	170	10
171	171	11
172	172	12
173	173	13
174	174	14
175	175	15
176	176	16
177	177	17
178	178	18
179	179	19
180	180	20
181	181	21
182	182	22
183	183	23
184	184	24
185	185
186	186	(8) 7% tax on next $1,500.00 or part thereof,
187	187	(9) 8% tax on next $2,000 .00 or part thereof,
188	188	(10) 9% tax on next $3,500.00 or part thereof, and
189	189	(11) 10% tax on the remainder.
190	190	b. Married individuals filing jointly and surviving
191	191	spouse to the extent and in the manner that a
192	192	surviving spouse is permitted to file a joint return
193	193	under the provisions of the Internal Revenue Code and
194	194	heads of households as def ined in the Internal Revenue
195	195	Code deducting federal income tax:
196	196	(1) 1/2% tax on the first $2,000.00 or part thereof,
197	197	(2) 1% tax on the next $3,000.00 or part thereof,
198	198	(3) 2% tax on the next $2,500.00 or part thereof,
199	199	(4) 3% tax on the next $1,400.00 or part thereof,
200	200	(5) 4% tax on the next $1,500.00 or part thereof,
201	201	(6) 5% tax on the next $1,600.00 or part thereof,
202	202	(7) 6% tax on the next $1,250.00 or part thereof,
203	203	(8) 7% tax on the next $1,750.00 or part thereof,
204	204	(9) 8% tax on the next $3,000.00 or part ther eof,
205	205	(10) 9% tax on the next $6,000.00 or part thereof, and
206	206	(11) 10% tax on the remainder.
207	207	B. Individuals. For all taxable years beginning on or after
208	208	January 1, 2008, and endi ng any tax year which begins after December
209	209	31, 2015, for which the determination required pursuant to Sections
210	210	1
211	211	2
212	212	3
213	213	4
214	214	5
215	215	6
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229	229	20
230	230	21
231	231	22
232	232	23
233	233	24
234	234
235	235	4 and 5 of this act is made by the State Board of Equalization, a
236	236	tax is hereby imposed upon the Oklahoma taxable income of every
237	237	resident or nonresident individual, which tax shall be computed as
238	238	follows:
239	239	1. Single individuals and married individuals filing
240	240	separately:
241	241	(a) 1/2% tax on first $1,000.00 or part thereof,
242	242	(b) 1% tax on next $1,500.00 or part thereof,
243	243	(c) 2% tax on next $1,250.00 or p art thereof,
244	244	(d) 3% tax on next $1,150.00 or part thereof,
245	245	(e) 4% tax on next $2,300.00 or part thereof,
246	246	(f) 5% tax on next $1,500.00 or part thereof,
247	247	(g) 5.50% tax on the remainder for the 2008 tax year and
248	248	any subsequent tax year unless the rate prescrib ed by
249	249	subparagraph (h) of this paragraph is in effect, and
250	250	(h) 5.25% tax on the remainder for the 2009 and subsequent
251	251	tax years. The decrease in the top marginal
252	252	individual income tax rate otherwise authorized by
253	253	this subparagraph shall be contingent upon the
254	254	determination required to be made by the State Board
255	255	of Equalization pursuant to Section 2355.1A of this
256	256	title.
257	257	2. Married individuals filing jointly and surviving spouse to
258	258	the extent and in the manner that a surviving spouse is permitted to
259	259	1
260	260	2
261	261	3
262	262	4
263	263	5
264	264	6
265	265	7
266	266	8
267	267	9
268	268	10
269	269	11
270	270	12
271	271	13
272	272	14
273	273	15
274	274	16
275	275	17
276	276	18
277	277	19
278	278	20
279	279	21
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281	281	23
282	282	24
283	283
284	284	file a joint return under the provisions of the Internal Revenue
285	285	Code and heads of ho useholds as defined in the Internal Revenue
286	286	Code:
287	287	(a) 1/2% tax on first $2,000.00 or part thereof,
288	288	(b) 1% tax on next $3,000.00 or part thereof,
289	289	(c) 2% tax on next $2,500.00 or p art thereof,
290	290	(d) 3% tax on next $2,300.00 or part thereof,
291	291	(e) 4% tax on next $2,400.00 or part thereof,
292	292	(f) 5% tax on next $2,800.00 or part thereof,
293	293	(g) 5.50% tax on the remainder for the 2008 tax year and
294	294	any subsequent tax year unless the rate prescrib ed by
295	295	subparagraph (h) of this paragraph is in effect, and
296	296	(h) 5.25% tax on the remainder for the 2009 and subsequent
297	297	tax years. The decrease in the top marginal
298	298	individual income tax rate otherwise authorized by
299	299	this subparagraph shall be contingent upon the
300	300	determination required to be made by the State Board
301	301	of Equalization pursuant to Section 2355.1A of this
302	302	title.
303	303	C. Individuals. For all taxable years beginning on or after
304	304	January 1, 2024, and ending any tax year which begins after December
305	305	31, 2025, a tax is hereby imposed upon the Oklahoma taxable income
306	306	of every resident or nonresident individual, which tax shall be
307	307	computed as follows:
308	308	1
309	309	2
310	310	3
311	311	4
312	312	5
313	313	6
314	314	7
315	315	8
316	316	9
317	317	10
318	318	11
319	319	12
320	320	13
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323	323	16
324	324	17
325	325	18
326	326	19
327	327	20
328	328	21
329	329	22
330	330	23
331	331	24
332	332
333	333	1. Single individuals and married individuals filing
334	334	separately:
335	335	(a) 0.25% tax on first $1,000.00 or part there of,
336	336	(b) 0.75% tax on next $1,500.00 or part thereof,
337	337	(c) 1.75% tax on next $1,250.00 or part thereof,
338	338	(d) 2.75% tax on next $1,150.00 or part thereof,
339	339	(e) 3.75% tax on next $2,300.00 or part thereof,
340	340	(f) 4.75% tax on the remainder.
341	341	2. Married individuals filing jointly and surviving spouse to
342	342	the extent and in the manner that a sur viving spouse is permitted to
343	343	file a joint return under the provisions of the Internal Revenue
344	344	Code and heads of households as defined in the Internal Revenue
345	345	Code:
346	346	(a) 0.25% tax on first $2,000.00 or part thereof,
347	347	(b) 0.75% tax on next $3,000.00 or part thereof,
348	348	(c) 1.75% tax on next $2,500.00 or part thereof,
349	349	(d) 2.75% tax on next $2,300.00 or part thereof,
350	350	(e) 3.75% tax on next $4,600.00 or part thereof,
351	351	(f) 4.75% tax on the remainder.
352	352	No deduction for federal income taxes paid shall be allowed to
353	353	any taxpayer to arrive at taxable income.
354	354	D. Individuals. For all taxable years beginning on or after
355	355	January 1, 2026, a tax is hereby imposed upon the Oklahoma taxable
356	356	1
357	357	2
358	358	3
359	359	4
360	360	5
361	361	6
362	362	7
363	363	8
364	364	9
365	365	10
366	366	11
367	367	12
368	368	13
369	369	14
370	370	15
371	371	16
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373	373	18
374	374	19
375	375	20
376	376	21
377	377	22
378	378	23
379	379	24
380	380
381	381	income of every resident or nonresident individual, which tax shall
382	382	be computed as follows:
383	383	1. Single individuals and married individuals filing
384	384	separately:
385	385	(a) 0.0% tax on first $1,000.00 or part thereof,
386	386	(b) 0.0% tax on next $1,500.00 or part thereof,
387	387	(c) 1.75% tax on next $1,250.00 or part thereof,
388	388	(d) 2.75% tax on next $1,150.00 or part the reof,
389	389	(e) 3.75% tax on next $2,300.00 or part thereof,
390	390	(f) 4.75% tax on the remainder.
391	391	2. Married individuals filing jointly and surviving spouse to
392	392	the extent and in the manner that a surviving spouse is permitted to
393	393	file a joint return under the provisions of the Internal Revenue
394	394	Code and heads of households as defined in the Internal Revenue
395	395	Code:
396	396	(a) 0.0% tax on first $2,000.00 or part thereof,
397	397	(b) 0.0% tax on next $3,000.00 or part thereof,
398	398	(c) 1.75% tax on next $2,500.00 or part thereof,
399	399	(d) 2.75% tax on next $2,300.00 or part thereof,
400	400	(e) 3.75% tax on next $4,600.00 or part thereof,
401	401	(f) 4.75% tax on the remainder.
402	402	No deduction for federal income taxes paid shall be allowed to
403	403	any taxpayer to arrive at taxable income.
404	404	1
405	405	2
406	406	3
407	407	4
408	408	5
409	409	6
410	410	7
411	411	8
412	412	9
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414	414	11
415	415	12
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417	417	14
418	418	15
419	419	16
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421	421	18
422	422	19
423	423	20
424	424	21
425	425	22
426	426	23
427	427	24
428	428
429	429	D. E. Nonresident aliens. In lieu of the rates set forth in
430	430	subsection A above, there shall be imposed on nonresident aliens, as
431	431	defined in the Internal Revenue Code, a tax of eight percent (8%)
432	432	instead of thirty percent (30%) as used in the Internal Revenue
433	433	Code, with respect to the Ok lahoma taxable income of such
434	434	nonresident aliens as determined under the provision of the Oklahoma
435	435	Income Tax Act.
436	436	Every payer of amounts covered by this subsection shall deduct
437	437	and withhold from such amounts paid each payee an amount equal to
438	438	eight percent (8%) thereof. Every payer required to deduct and
439	439	withhold taxes under this subsection shall for each quarterly period
440	440	on or before the last day of the month following the clos e of each
441	441	such quarterly period, pay over the amount so withheld as taxes to
442	442	the Tax Commission, and shall file a return with each such payment.
443	443	Such return shall be in such form as the Tax Commission shall
444	444	prescribe. Every payer required under this subs ection to deduct and
445	445	withhold a tax from a payee shall, as to the total amounts paid to
446	446	each payee during the calendar year, furnish to such payee, on or
447	447	before January 31, of the succeeding year, a written statement
448	448	showing the name of the payer, the name of the payee and the payee 's
449	449	Social Security account number, if any, the tota l amount paid
450	450	subject to taxation, and the total amount deducted and withheld as
451	451	tax and such other information as the Tax Commission may require.
452	452	Any payer who fails to withhol d or pay to the Tax Commission any
453	453	1
454	454	2
455	455	3
456	456	4
457	457	5
458	458	6
459	459	7
460	460	8
461	461	9
462	462	10
463	463	11
464	464	12
465	465	13
466	466	14
467	467	15
468	468	16
469	469	17
470	470	18
471	471	19
472	472	20
473	473	21
474	474	22
475	475	23
476	476	24
477	477
478	478	sums herein required to be withheld or paid shall be personally and
479	479	individually liable therefor to the State of Oklahoma.
480	480	E. F. Corporations. For all taxable years beginning after
481	481	December 31, 2021, a tax is hereby imp osed upon the Oklahoma taxable
482	482	income of every corporation doing business with in this state or
483	483	deriving income from sources within this state in an amount equal to
484	484	four percent (4%) thereof.
485	485	There shall be no additional Oklahoma income tax imposed on
486	486	accumulated taxable income or on undistributed personal holding
487	487	company income as those terms are defined in the Internal Revenue
488	488	Code.
489	489	F. G. Certain foreign corporations. In lieu of the tax imposed
490	490	in the first paragraph of subsection D E of this section, for all
491	491	taxable years beginning after December 31, 2021, there shall be
492	492	imposed on foreign corporations, as defined in the Internal Revenue
493	493	Code, a tax of four percent (4%) instead of thirty percent (30%) as
494	494	used in the Internal Revenue Code, where such inco me is received
495	495	from sources within Oklahoma, in accordance with the provisions of
496	496	the Internal Revenue Code and the Oklahoma Income Tax Act.
497	497	Every payer of amounts covered by this subsection shall deduct
498	498	and withhold from such amounts paid each payee an am ount equal to
499	499	four percent (4%) thereof. Every payer required to deduct and
500	500	withhold taxes under this subsection shall for each quarterly period
501	501	on or before the last day of the month following the close of each
502	502	1
503	503	2
504	504	3
505	505	4
506	506	5
507	507	6
508	508	7
509	509	8
510	510	9
511	511	10
512	512	11
513	513	12
514	514	13
515	515	14
516	516	15
517	517	16
518	518	17
519	519	18
520	520	19
521	521	20
522	522	21
523	523	22
524	524	23
525	525	24
526	526
527	527	such quarterly period, pay over the amount so withheld as taxes to
528	528	the Tax Commission, and shall file a return with each such payment.
529	529	Such return shall be in such form as the Tax Commission shall
530	530	prescribe. Every payer required under this subsection to deduct and
531	531	withhold a tax from a payee shal l, as to the total amounts paid to
532	532	each payee during the calendar year, furnis h to such payee, on or
533	533	before January 31, of the succeeding year, a written statement
534	534	showing the name of the payer, the name of the payee and the payee 's
535	535	Social Security account number, if any, the total amounts paid
536	536	subject to taxation, the total amount deducted and withheld as tax
537	537	and such other information as the Tax Commission may require. Any
538	538	payer who fails to withhold or pay to the Tax Commission any sums
539	539	herein required to be withheld or paid shall be personally and
540	540	individually liable therefor to the State of Oklahoma.
541	541	G. H. Fiduciaries. A tax is hereby imposed upon the Oklahoma
542	542	taxable income of every trust and estate at the same rates as are
543	543	provided in subsection B or, C, or D of this section for single
544	544	individuals. Fiduciaries are not allowed a deduction for any
545	545	federal income tax paid.
546	546	H. I. Tax rate tables. For all taxable years beginning after
547	547	December 31, 1991, in lieu of the tax imposed by subsection A, B or
548	548	C of this section, as applicable there is hereby imposed for each
549	549	taxable year on the taxable income of every individual, whose
550	550	taxable income for such taxable year does not exceed the ceiling
551	551	1
552	552	2
553	553	3
554	554	4
555	555	5
556	556	6
557	557	7
558	558	8
559	559	9
560	560	10
561	561	11
562	562	12
563	563	13
564	564	14
565	565	15
566	566	16
567	567	17
568	568	18
569	569	19
570	570	20
571	571	21
572	572	22
573	573	23
574	574	24
575	575
576	576	amount, a tax determined under tables, applicable to such taxa ble
577	577	year which shall be prescribed by the Tax Commission and which shall
578	578	be in such form as it determines appropriate. In the table so
579	579	prescribed, the amounts of the tax shall be computed on the basis of
580	580	the rates prescribed by subsection A, B or C of thi s section. For
581	581	purposes of this subsection, the term "ceiling amount" means, with
582	582	respect to any taxpayer, the amount determined by the Tax Commission
583	583	for the tax rate category in which such taxpayer falls.
584	584	SECTION 2. This act shall becom e effective November 1, 2025.
585	585
586	586	60-1-11333 AO 01/07/25

Oklahoma 2025 Regular Session

Oklahoma House Bill HB1267 Compare Versions