OK HB1806

Modifies Oklahoma individual income tax rates effective January 1, 2026, reducing rates across all income brackets for single filers, married filers, and heads of households.

For single individuals and married filing separately: reduces top marginal rate from 4.75% to 4.50% and lowers rates on lower income brackets (e.g., first bracket from 0.25% to 0.00%).

For married filing jointly and heads of household: reduces top marginal rate from 4.75% to 4.50% with corresponding reductions across all lower income brackets.

Eliminates federal income tax deduction for all taxpayers calculating Oklahoma taxable income.

Becomes effective for taxable years beginning on or after January 1, 2026.