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27	27	STATE OF OKLAHOMA
28	28
29	29	1st Session of the 60th Legislature (2025)
30	30
31	31	HOUSE BILL 2195 By: Wolfley
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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 rates; modifying individual income tax
44	44	rates; modifying references to income tax years; a nd
45	45	providing an effective date.
46	46
47	47
48	48
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54	54
55	55	BE IT ENACTED BY THE PEOPLE OF T HE STATE OF OKLAHOMA:
56	56	SECTION 1. AMENDATORY 68 O.S. 2021, Section 2355, as
57	57	last amended by Section 1, Chapter 27, 1st Extraordinary Session,
58	58	O.S.L. 2023 (68 O.S. Supp. 2024, Section 2355), is amended to read
59	59	as follows:
60	60	Section 2355. A. Individuals. For all taxable years beginning
61	61	after December 31, 1998, and before January 1, 2006, a tax is hereby
62	62	imposed upon the Oklahoma taxable income of every resident or
63	63	nonresident individual, which tax shall be computed at the option of
64	64	the taxpayer under one of the two following methods:
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66	66	2
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90	90	1. METHOD 1.
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 thereo f,
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 af ter
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 federa l income tax:
114	114	1
115	115	2
116	116	3
117	117	4
118	118	5
119	119	6
120	120	7
121	121	8
122	122	9
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138	138
139	139	(1) 1/2% tax on first $2,000.00 or part thereof,
140	140	(2) 1% tax on next $3,000.00 or part thereof,
141	141	(3) 2% tax on next $2,500.00 or part thereof,
142	142	(4) 3% tax on next $2,300.00 or part thereof,
143	143	(5) 4% tax on next $2,400.00 or part thereof,
144	144	(6) 5% tax on next $2,800.00 or part thereof,
145	145	(7) 6% tax on next $6,000.00 or part thereof, and
146	146	(8) (a) for taxable years beginning after December
147	147	31, 1998, and before January 1, 2002, 6. 75%
148	148	tax on the remainder,
149	149	(b) for taxable years beginning on or after
150	150	January 1, 2002, and before January 1, 2004,
151	151	7% tax on the remainder, and
152	152	(c) for taxable years beginning on or after
153	153	January 1, 2004, 6.65% tax on the remainder.
154	154	2. METHOD 2.
155	155	a. Single individuals and married individuals filing
156	156	separately deducting federal income tax:
157	157	(1) 1/2% tax on first $1,000.00 or part thereof,
158	158	(2) 1% tax on next $1,500.00 or part thereof,
159	159	(3) 2% tax on next $1,250.00 or part thereof,
160	160	(4) 3% tax on next $1,150.00 o r part thereof,
161	161	(5) 4% tax on next $1,200.00 or part thereof,
162	162	(6) 5% tax on next $1,400.00 or part thereof,
163	163	1
164	164	2
165	165	3
166	166	4
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188	188	(7) 6% tax on next $1,500.00 or part thereof,
189	189	(8) 7% tax on next $1,500.00 or part thereof,
190	190	(9) 8% tax on next $2,000.00 or part thereof,
191	191	(10) 9% tax on next $3,500.00 or part thereof, and
192	192	(11) 10% tax on the remainder.
193	193	b. Married individuals filing jointly and surviving
194	194	spouse to the extent and in the manner that a
195	195	surviving spouse is permitted to file a joint return
196	196	under the provisions of the Inter nal Revenue Code and
197	197	heads of households as defined in the Internal Revenue
198	198	Code deducting federal income tax:
199	199	(1) 1/2% tax on the first $2,000.00 or part thereof,
200	200	(2) 1% tax on the next $3,000.00 or part thereof,
201	201	(3) 2% tax on the next $2,500.00 or part t hereof,
202	202	(4) 3% tax on the next $1,400.00 or part thereof,
203	203	(5) 4% tax on the next $1,500.00 or part thereof,
204	204	(6) 5% tax on the next $1,600.00 or part thereof,
205	205	(7) 6% tax on the next $1,250.00 or part thereof,
206	206	(8) 7% tax on the next $1,750.00 or part thereof ,
207	207	(9) 8% tax on the next $3,000.00 or part thereof,
208	208	(10) 9% tax on the next $6 ,000.00 or part thereof, and
209	209	(11) 10% tax on the remainder.
210	210	B. Individuals. For all taxable years beginning on or after
211	211	January 1, 2008, and ending any tax year which begins af ter December
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237	237	31, 2015, for which the determination required pursuant to Sections
238	238	4 and 5 of this act is made by the State Board of Equalization, a
239	239	tax is hereby imposed upon the Oklahoma taxable income of every
240	240	resident or nonresident individual, which tax shall be computed as
241	241	follows:
242	242	1. Single individuals and married individuals filing
243	243	separately:
244	244	(a) 1/2% tax on first $1,000.00 or part thereof,
245	245	(b) 1% tax on next $1,500.00 or part thereof,
246	246	(c) 2% tax on next $1,250.00 or part thereof,
247	247	(d) 3% tax on next $1,150.00 or part thereof,
248	248	(e) 4% tax on next $2,300.00 or part thereof,
249	249	(f) 5% tax on next $1,500.00 or part thereof,
250	250	(g) 5.50% tax on the remainder for the 2008 tax year and
251	251	any subsequent tax year unless the rate prescribed by
252	252	subparagraph (h) of this paragraph is in effect, and
253	253	(h) 5.25% tax on the remainder for the 2009 and su bsequent
254	254	tax years. The decrease in the top marginal
255	255	individual income tax rate otherwise authorized by
256	256	this subparagraph shall be contingent upon the
257	257	determination required to be made by the State Board
258	258	of Equalization pursuant to Section 2355.1A of this
259	259	title.
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261	261	2
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284	284
285	285	2. Married individuals filing jointly and surviving spouse to
286	286	the extent and in the manner that a surviving spouse is permitted to
287	287	file a joint return under the provisio ns of the Internal Revenue
288	288	Code and heads of households as defined in the Inte rnal Revenue
289	289	Code:
290	290	(a) 1/2% tax on first $2,000.00 or part thereof,
291	291	(b) 1% tax on next $3,000.00 or part thereof,
292	292	(c) 2% tax on next $2,500.00 or part thereof,
293	293	(d) 3% tax on next $2,300.00 or part thereof,
294	294	(e) 4% tax on next $2,400.00 or part thereof,
295	295	(f) 5% tax on next $2,800.00 or part thereof,
296	296	(g) 5.50% tax on the remainder for the 2008 tax year and
297	297	any subsequent tax year unless the rate prescribed by
298	298	subparagraph (h) of this paragraph is in effect, and
299	299	(h) 5.25% tax on the remainder for the 2009 and su bsequent
300	300	tax years. The decrease in the top marginal
301	301	individual income tax rate otherwise authorized by
302	302	this subparagraph shall be contingent upon the
303	303	determination required to be made by the State Board
304	304	of Equalization pursuant to Section 2355.1A of this
305	305	title.
306	306	C. Individuals. For all taxable years beginning on or after
307	307	January 1, 2024 2026, a tax is hereby imposed upon the Oklahoma
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310	310	3
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312	312	5
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333	333	taxable income of every resident or nonresid ent individual, which
334	334	tax shall be computed as follows:
335	335	1. Single individuals and married individuals filing
336	336	separately:
337	337	(a) 0.25% 0.00% tax on first $1,000.00 or part thereof,
338	338	(b) 0.75% tax on next $1,500.00 or part thereof,
339	339	(c) 1.75% tax on next $1,250. 00 or part thereof,
340	340	(d) 2.75% tax on next $1,150.00 or part thereof,
341	341	(e) 3.75% tax on next $2,300.00 or part thereof,
342	342	(f) 4.75% tax on the remainder.
343	343	2. Married individuals filing jointly and surviving spouse to
344	344	the extent and in the manner that a survivi ng spouse is permitted to
345	345	file a joint return under the provisions of the Inte rnal Revenue
346	346	Code and heads of households as defined in the Internal Revenue
347	347	Code:
348	348	(a) 0.25% 0.00% tax on first $2,000.00 or part thereof,
349	349	(b) 0.75% tax on next $3,000.00 or part thereof,
350	350	(c) 1.75% tax on next $2,500.00 or part thereof,
351	351	(d) 2.75% tax on next $2,300.00 or part thereof,
352	352	(e) 3.75% tax on next $4,600.00 or part thereof,
353	353	(f) 4.75% tax on the remainder.
354	354	No deduction for federal income taxes paid shall be allowed to
355	355	any taxpayer to arrive at taxable income.
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357	357	2
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381	381	D. Nonresident aliens. In lieu of the rates set forth in
382	382	subsection A above, there shall be imposed on nonresident aliens, as
383	383	defined in the Internal Revenue Code, a tax of eight percent (8%)
384	384	instead of thirty percen t (30%) as used in the Internal Revenue
385	385	Code, with respect to the Oklahoma taxable income of such
386	386	nonresident aliens as determined under the provision of the Oklahoma
387	387	Income Tax Act.
388	388	Every payer of amounts covered by this subsection shall deduct
389	389	and withhold from such amounts paid each payee an amount equal to
390	390	eight percent (8%) the reof. Every payer required to deduct and
391	391	withhold taxes under this subsection shall for each quarterly period
392	392	on or before the last day of the month following the close of each
393	393	such quarterly period, pay over the amount so withheld as taxes to
394	394	the Tax Commission, and shall file a return with each such payment.
395	395	Such return shall be in such form as the Tax Commission shall
396	396	prescribe. Every payer required under this subsection to deduct and
397	397	withhold a tax from a payee shall, as to the total amounts paid to
398	398	each payee during the calendar year, furnish to such payee, on or
399	399	before January 31, of the succeeding year, a written statement
400	400	showing the name of the payer, the name of the pa yee and the payee's
401	401	Social Security account number, if any, the total amount paid
402	402	subject to taxation, and the total amount deducted and withheld as
403	403	tax and such other information as the Tax Commission may require.
404	404	Any payer who fails to withhold or pay t o the Tax Commission any
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430	430	sums herein required to be withheld or paid shall be personally and
431	431	individually liable therefor to the State of Oklahoma.
432	432	E. Corporations. For all taxable years beginning after
433	433	December 31, 2021, a tax is hereby imposed upon the Oklahoma taxable
434	434	income of every corporation doing business within this state or
435	435	deriving income from sources within this state in an amount equal to
436	436	four percent (4%) thereof.
437	437	There shall be no additional Oklahoma income tax imposed on
438	438	accumulated taxable income or on undistributed personal holding
439	439	company income as those terms ar e defined in the Internal Revenue
440	440	Code.
441	441	F. Certain foreign corporations. In lieu of the tax imposed in
442	442	the first paragraph of subsection D of this section, for all taxable
443	443	years beginning after December 31, 2021, there shall be imposed on
444	444	foreign corporations, as defined in the Internal Revenue Code, a tax
445	445	of four percent (4%) instead of thirty percent (30%) as used in the
446	446	Internal Revenue Code, where such income is received fro m sources
447	447	within Oklahoma, in accordance with the provisions of the Internal
448	448	Revenue Code and the Oklahoma Income Tax Act.
449	449	Every payer of amounts covered by this subsection shall deduct
450	450	and withhold from such amounts paid each payee an amount equal to
451	451	four percent (4%) thereof. Every payer required to deduct and
452	452	withhold taxes under this subsection shall for each quarterly period
453	453	on or before the last day of the month following the close of each
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479	479	such quarterly period, pay over the amount so withheld as tax es to
480	480	the Tax Commission, and shall file a return with each such payment.
481	481	Such return shall be in such form as the Tax Commission shall
482	482	prescribe. Every payer required under this subsection to deduct and
483	483	withhold a tax from a payee shall, as to the total amounts paid to
484	484	each payee during the calendar year, furnish to such payee, on or
485	485	before January 31, of the succeeding year, a written statement
486	486	showing the name of the payer, the name of the payee and the payee 's
487	487	Social Security account number, if any, t he total amounts paid
488	488	subject to taxation, the total amount deducted and withh eld as tax
489	489	and such other information as the Tax Commission may require. Any
490	490	payer who fails to withhold or pay to the Tax Commission any sums
491	491	herein required to be withheld or paid shall be personally and
492	492	individually liable therefor to the State of Oklahoma.
493	493	G. Fiduciaries. A tax is hereby imposed upon the Oklahoma
494	494	taxable income of every trust and estate at the same rates as are
495	495	provided in subsection B or C of this section for single
496	496	individuals. Fiduciaries are not allowed a deduction for any
497	497	federal income tax paid.
498	498	H. Tax rate tables. For all taxable years beginning after
499	499	December 31, 1991, in lieu of the tax imposed by subsection A, B or
500	500	C of this section, as applicab le there is hereby imposed for each
501	501	taxable year on the taxable income of every individual, whose
502	502	taxable income for such taxable year does not exceed the ceiling
503	503	1
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505	505	3
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527	527
528	528	amount, a tax determined under tables, applicable to such taxable
529	529	year which shall be prescri bed by the Tax Commission and which shall
530	530	be in such form as it determines app ropriate. In the table so
531	531	prescribed, the amounts of the tax shall be computed on the basis of
532	532	the rates prescribed by subsection A, B or C of this section. For
533	533	purposes of this subsection, the term "ceiling amount" means, with
534	534	respect to any taxpayer, the amount determined by the Tax Commission
535	535	for the tax rate category in which such taxpayer falls.
536	536	SECTION 2. This act shall become effective November 1, 2025.
537	537
538	538	60-1-11071 MAH 01/03/25

Oklahoma 2025 Regular Session

Oklahoma House Bill HB2195 Compare Versions