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STATE OF OKLAHOMA
2nd Session of the 60th Legislature (2026)
SENATE BILL 2156 By: Deevers
AS INTRODUCED
An Act relating to tax; amending 68 O.S. 2021,
Section 2355, as last amended by Section 2, Chapter
307, O.S.L. 2025 (68 O.S. Supp. 2025, Section 2355),
which relates to income tax; modifying certain income
tax rate for certain tax years; eliminating certain
duties imposed upon the State Board of Equalization;
and providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2021, Section 2355, as
last amended by Section 2, Chapter 307, O.S.L. 2025 (68 O.S. Supp.
2025, Section 2355), is amended to read as follows:
Section 2355. A. Individuals. For all taxable years beginning
after December 31, 1998, and before January 1, 2006, a tax is hereby
imposed upon the Oklahoma taxable income of every resident or
nonresident individual, which tax shall be computed at the option of
the taxpayer under one of the two following methods:
1. METHOD 1.
a. Single individuals and married individuals filing
separately not deducting federal income tax:
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(1) 1/2% tax on first $1,000.00 or part thereof,
(2) 1% tax on next $1,500.00 or part thereof,
(3) 2% tax on next $1,250.00 or part thereof,
(4) 3% tax on next $1,150.00 or part thereof,
(5) 4% tax on next $1,300.00 or part thereof,
(6) 5% tax on next $1,500.00 or part thereof,
(7) 6% tax on next $2,300.00 or part thereof, and
(8) (a) for taxable years beginning after December
31, 1998, and before January 1, 2002, 6.75%
tax on the remainder,
(b) for taxable years beginning on or after
January 1, 2002, and before January 1, 2004,
7% tax on the remainder, and
(c) for taxable years beginning on or after
January 1, 2004, 6.65% tax on the remainder.
b. Married individuals filing jointly and surviving
spouse to the extent and in the manner that a
surviving spouse is permitted to file a joint return
under the provisions of the Internal Revenue Code of
1986, as amended, and heads of households as defined
in the Internal Revenue Code of 1986, as amended, not
deducting federal income tax:
(1) 1/2% tax on first $2,000.00 or part thereof,
(2) 1% tax on next $3,000.00 or part thereof,
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(3) 2% tax on next $2,500.00 or part thereof,
(4) 3% tax on next $2,300.00 or part thereof,
(5) 4% tax on next $2,400.00 or part thereof,
(6) 5% tax on next $2,800.00 or part thereof,
(7) 6% tax on next $6,000.00 or part thereof, and
(8) (a) for taxable years beginning after December
31, 1998, and before January 1, 2002, 6.75%
tax on the remainder,
(b) for taxable years beginning on or after
January 1, 2002, and before January 1, 2004,
7% tax on the remainder, and
(c) for taxable years beginning on or after
January 1, 2004, 6.65% tax on the remainder.
2. METHOD 2.
a. Single individuals and married individuals filing
separately deducting federal income tax:
(1) 1/2% tax on first $1,000.00 or part thereof,
(2) 1% tax on next $1,500.00 or part thereof,
(3) 2% tax on next $1,250.00 or part thereof,
(4) 3% tax on next $1,150.00 or part thereof,
(5) 4% tax on next $1,200.00 or part thereof,
(6) 5% tax on next $1,400.00 or part thereof,
(7) 6% tax on next $1,500.00 or part thereof,
(8) 7% tax on next $1,500.00 or part thereof,
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(9) 8% tax on next $2,000.00 or part thereof,
(10) 9% tax on next $3,500.00 or part thereof, and
(11) 10% tax on the remainder.
b. Married individuals filing jointly and surviving
spouse to the extent and in the manner that a
surviving spouse is permitted to file a joint return
under the provisions of the Internal Revenue Code of
1986, as amended, and heads of households as defined
in the Internal Revenue Code of 1986, as amended,
deducting federal income tax:
(1) 1/2% tax on the first $2,000.00 or part thereof,
(2) 1% tax on the next $3,000.00 or part thereof,
(3) 2% tax on the next $2,500.00 or part thereof,
(4) 3% tax on the next $1,400.00 or part thereof,
(5) 4% tax on the next $1,500.00 or part thereof,
(6) 5% tax on the next $1,600.00 or part thereof,
(7) 6% tax on the next $1,250.00 or part thereof,
(8) 7% tax on the next $1,750.00 or part thereof,
(9) 8% tax on the next $3,000.00 or part thereof,
(10) 9% tax on the next $6,000.00 or part thereof, and
(11) 10% tax on the remainder.
B. Individuals. For all taxable years beginning on or after
January 1, 2008, and ending any tax year which begins after December
31, 2015, for which the determination required pursuant to Sections
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2355.1F and 2355.1G of this title is made by the State Board of
Equalization, a tax is hereby imposed upon the Oklahoma taxable
income of every resident or nonresident individual, which tax shall
be computed as follows:
1. Single individuals and married individuals filing
separately:
(a) 1/2% tax on first $1,000.00 or part thereof,
(b) 1% tax on next $1,500.00 or part thereof,
(c) 2% tax on next $1,250.00 or part thereof,
(d) 3% tax on next $1,150.00 or part thereof,
(e) 4% tax on next $2,300.00 or part thereof,
(f) 5% tax on next $1,500.00 or part thereof,
(g) 5.50% tax on the remainder for the 2008 tax year and
any subsequent tax year unless the rate prescribed by
subparagraph (h) of this paragraph is in effect, and
(h) 5.25% tax on the remainder for the 2009 and subsequent
tax years. The decrease in the top marginal
individual income tax rate otherwise authorized by
this subparagraph shall be contingent upon the
determination required to be made by the State Board
of Equalization pursuant to Section 2355.1A of this
title.
2. Married individuals filing jointly and surviving spouse to
the extent and in the manner that a surviving spouse is permitted to
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file a joint return under the provisions of the Internal Revenue
Code of 1986, as amended, and heads of households as defined in the
Internal Revenue Code of 1986, as amended:
(a) 1/2% tax on first $2,000.00 or part thereof,
(b) 1% tax on next $3,000.00 or part thereof,
(c) 2% tax on next $2,500.00 or part thereof,
(d) 3% tax on next $2,300.00 or part thereof,
(e) 4% tax on next $2,400.00 or part thereof,
(f) 5% tax on next $2,800.00 or part thereof,
(g) 5.50% tax on the remainder for the 2008 tax year and
any subsequent tax year unless the rate prescribed by
subparagraph (h) of this paragraph is in effect, and
(h) 5.25% tax on the remainder for the 2009 and subsequent
tax years. The decrease in the top marginal
individual income tax rate otherwise authorized by
this subparagraph shall be contingent upon the
determination required to be made by the State Board
of Equalization pursuant to Section 2355.1A of this
title.
C. Individuals. For tax years 2024 and 2025, a tax is hereby
imposed upon the Oklahoma taxable income of every resident or
nonresident individual, which tax shall be computed as follows:
1. Single individuals and married individuals filing
separately:
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(a) 0.25% tax on first $1,000.00 or part thereof,
(b) 0.75% tax on next $1,500.00 or part thereof,
(c) 1.75% tax on next $1,250.00 or part thereof,
(d) 2.75% tax on next $1,150.00 or part thereof,
(e) 3.75% tax on next $2,300.00 or part thereof, and
(f) 4.75% tax on the remainder.
2. Married individuals filing jointly and surviving spouse to
the extent and in the manner that a surviving spouse is permitted to
file a joint return under the provisions of the Internal Revenue
Code of 1986, as amended, and heads of households as defined in the
Internal Revenue Code of 1986, as amended:
(a) 0.25% tax on first $2,000.00 or part thereof,
(b) 0.75% tax on next $3,000.00 or part thereof,
(c) 1.75% tax on next $2,500.00 or part thereof,
(d) 2.75% tax on next $2,300.00 or part thereof,
(e) 3.75% tax on next $4,600.00 or part thereof, and
(f) 4.75% tax on the remainder.
No deduction for federal income taxes paid shall be allowed to
any taxpayer to arrive at taxable income.
D. Individuals. For tax year 2026 and for subsequent tax years
subject to rate reductions as provided by subsection E of this
section, a tax is hereby imposed upon the Oklahoma taxable income of
every resident or nonresident individual, which tax shall be
computed as follows:
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1. Single individuals and married individuals filing
separately:
(a) 0% tax on first $3,750.00 or part thereof,
(b) 2.5% tax on the next $1,150.00 or part thereof,
(c) 3.5% tax on next $2,300.00 or part thereof, and
(d) 4.5% tax on the remainder.
2. Married individuals filing jointly and surviving spouse to
the extent and in the manner that a surviving spouse is permitted to
file a joint return under the provisions of the Internal Revenue
Code of 1986, as amended, and heads of households as defined in the
Internal Revenue Code of 1986, as amended:
(a) 0% tax on first $7,500.00 or part thereof,
(b) 2.5% tax on the next $2,300.00 or part thereof,
(c) 3.5% tax on next $4,600.00 or part thereof, and
(d) 4.5% tax on the remainder.
No deduction for federal income taxes paid shall be allowed to
any taxpayer to arrive at taxable income.
E. As provided by subsection D of Section 34.103 of Title 62 of
the Oklahoma Statutes, if the comparison year total collections
exceeds the base year total collections plus the income tax rate
reduction threshold, as certified by the State Board of Equalization
pursuant to paragraph 2 of subsection D of Section 34.103 of Title
62 of the Oklahoma Statutes, the tax rates otherwise prescribed in
paragraphs 1 and 2 of subsection D of this section shall each be
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reduced by twenty-five one-hundredths (0.25) of a percentage point
(0.0025) until the applicable rate equals zero percent (0%). Each
successive certification by the State Board of Equalization with
respect to which the comparison year total collections exceeds the
base year total collections plus the income tax rate reduction
threshold, as determined by the State Board of Equalization as
provided by subsection D of Section 34.103 of Title 62 of the
Oklahoma Statutes, shall further reduce the individual income tax
rates by twenty-five one-hundredths (0.25) of a percentage point
(0.0025) until the applicable rate equals zero percent (0%). Any
reduction in the income tax rates authorized by this section and by
this act shall take effect on January 1 following the final
certification by the State Board of Equalization, if any, made
during its meeting in February each year.
F. If a revenue failure is declared pursuant to the provisions
of Section 34.49 of Title 62 of the Oklahoma Statutes prior to the
end of the calendar year in which the Board makes a certification
pursuant to paragraph 2 of subsection D of Section 34.103 of Title
62 of the Oklahoma Statutes, the reduction in tax rates, as
otherwise provided for in this section, shall not occur until a
subsequent certification is made by the State Board of Equalization
pursuant to paragraph 2 of subsection D of Section 34.103 of Title
62 of the Oklahoma Statutes, there shall be no tax imposed upon the
Oklahoma taxable income of any resident or nonresident individual.
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G. E. Nonresident aliens. In lieu of the rates set forth in
subsection A above, there shall be imposed on nonresident aliens, as
defined in the Internal Revenue Code of 1986, as amended, a tax of
eight percent (8%) instead of thirty percent (30%) as used in the
Internal Revenue Code of 1986, as amended, with respect to the
Oklahoma taxable income of such nonresident aliens as determined
under the provision of the Oklahoma Income Tax Act.
Every payer of amounts covered by this subsection shall deduct
and withhold from such amounts paid each payee an amount equal to
eight percent (8%) thereof. Every payer required to deduct and
withhold taxes under this subsection shall for each quarterly period
on or before the last day of the month following the close of each
such quarterly period, pay over the amount so withheld as taxes to
the Oklahoma Tax Commission, and shall file a return with each such
payment. Such return shall be in such form as the Tax Commission
shall prescribe. Every payer required under this subsection to
deduct and withhold a tax from a payee shall, as to the total
amounts paid to each payee during the calendar year, furnish to such
payee, on or before January 31 of the succeeding year, a written
statement showing the name of the payer, the name of the payee and
the payee’s Social Security account number, if any, the total amount
paid subject to taxation, and the total amount deducted and withheld
as tax and such other information as the Tax Commission may require.
Any payer who fails to withhold or pay to the Tax Commission any
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sums herein required to be withheld or paid shall be personally and
individually liable therefor to the State of Oklahoma.
H. F. Corporations. For all taxable years beginning after
December 31, 2021, a tax is hereby imposed upon the Oklahoma taxable
income of every corporation doing business within this state or
deriving income from sources within this state in an amount equal to
four percent (4%) thereof.
There shall be no additional Oklahoma income tax imposed on
accumulated taxable income or on undistributed personal holding
company income as those terms are defined in the Internal Revenue
Code of 1986, as amended.
I. G. Certain foreign corporations. In lieu of the tax imposed
in the first paragraph of subsection G E of this section, for all
taxable years beginning after December 31, 2021, there shall be
imposed on foreign corporations, as defined in the Internal Revenue
Code of 1986, as amended, a tax of four percent (4%) instead of
thirty percent (30%) as used in the Internal Revenue Code of 1986,
as amended, where such income is received from sources within this
state, in accordance with the provisions of the Internal Revenue
Code of 1986, as amended, and the Oklahoma Income Tax Act.
Every payer of amounts covered by this subsection shall deduct
and withhold from such amounts paid each payee an amount equal to
four percent (4%) thereof. Every payer required to deduct and
withhold taxes under this subsection shall for each quarterly period
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on or before the last day of the month following the close of each
such quarterly period, pay over the amount so withheld as taxes to
the Tax Commission, and shall file a return with each such payment.
Such return shall be in such form as the Tax Commission shall
prescribe. Every payer required under this subsection to deduct and
withhold a tax from a payee shall, as to the total amounts paid to
each payee during the calendar year, furnish to such payee, on or
before January 31 of the succeeding year, a written statement
showing the name of the payer, the name of the payee and the payee’s
Social Security account number, if any, the total amounts paid
subject to taxation, the total amount deducted and withheld as tax,
and such other information as the Tax Commission may require. Any
payer who fails to withhold or pay to the Tax Commission any sums
herein required to be withheld or paid shall be personally and
individually liable therefor to the State of Oklahoma.
J. H. Fiduciaries. A tax is hereby imposed upon the Oklahoma
taxable income of every trust and estate at the same rates as are
provided in subsections B through D of this section for single
individuals. Fiduciaries are not allowed a deduction for any
federal income tax paid.
K. I. Tax rate tables. For all taxable years beginning after
December 31, 1991, in lieu of the tax imposed by subsections A
through D of this section, as applicable there is hereby imposed for
each taxable year on the taxable income of every individual, whose
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taxable income for such taxable year does not exceed the ceiling
amount, a tax determined under tables, applicable to such taxable
year which shall be prescribed by the Tax Commission and which shall
be in such form as it determines appropriate. In the table so
prescribed, the amounts of the tax shall be computed on the basis of
the rates prescribed by subsections A through D of this section.
For purposes of this subsection, the term “ceiling amount” means,
with respect to any taxpayer, the amount determined by the Tax
Commission for the tax rate category in which such taxpayer falls.
SECTION 2. This act shall become effective November 1, 2026.
60-2-3457 QD 1/15/2026 2:03:39 PM