HB 1624 Summary

• Eliminates Oklahoma corporate income tax imposed on corporations doing business or deriving income from sources within the state, removing the 6% corporate tax rate that previously applied to all taxable years beginning after December 31, 1989.

• Maintains individual income tax rates for residents and nonresidents through existing tax brackets and progressive rate structures based on filing status (single, married filing jointly, heads of household, surviving spouse).

• Eliminates federal income tax deductions for all individual taxpayers beginning January 1, 2016, requiring individuals to compute taxable income without deducting federal taxes paid.

• Reduces the top individual income tax rate to either 5% or 4.85% depending on determinations made by the State Board of Equalization pursuant to sections 4 and 5 of the act for taxable years beginning on or after January 1, 2016.

• Takes effect January 1, 2016.