Senate Bill 98 - Summary

• Individual income tax rates for 2024: Establishes progressive tax rates ranging from 0.25% to 4.75% on Oklahoma taxable income, with reduced rates compared to previous years and personal exemptions of $1,000 limited to tax year 2024 and preceding years.

• Flat tax rate for 2025 and beyond: Imposes a single flat income tax rate of 4.75% on all resident and nonresident individuals for tax year 2025 and subsequent tax years, with no deduction for federal income taxes paid.

• Standard deduction adjustments: Modifies standard deduction amounts for individuals using standard deduction method, with specific amounts for tax year 2025 ($14,000 single/$28,000 joint) and tax year 2026+ ($1,000-$2,000 less than federal standard deduction).

• Corporate tax rate maintained: Keeps corporate income tax rate at 4% for all taxable years beginning after December 31, 2021, with provisions for nonresident aliens and foreign corporations at 8% and 4% respectively.

• Effective date and emergency declaration: Act becomes effective July 1, 2025, with an emergency clause allowing it to take effect upon passage and approval.