HB 2740 Oklahoma House · 2026 Regular Session

Revenue and taxation; taxations; rates; income tax; exemptions; effective date.

HB 2740 amends Oklahoma's individual income tax structure for tax years beginning January 1, 2026. It reduces the top marginal tax rate from 5.50% to 4.75% for all taxable income above specific thresholds, applying to both single filers and married couples filing jointly. The bill establishes new, lower tax brackets: for example, single filers pay 0.25% on the first $1,000, 0.75% on the next $1,500, and 4.75% on all remaining income. This change affects all Oklahoma residents and nonresidents filing state income tax returns, with no federal tax deduction allowed.

Issues: ✓ Budget & Taxes

Bill status died 3 of 5 stages cleared

Introduction

Feb 2025

Committee Review

Mar 2025

House Passage

Mar 2025

Senate Passage

Governor

Introduced Feb 3, 2025 Last action Mar 6, 2025

Maddy AI version diff · 3 comparisons

What changed between versions

Proposed Committee Substitute (sub committee) 1 → Floor (House) · 2 edits

MINOR

The bill was completely rewritten to replace the old committee version with a new floor version. The primary change is the update of tax rates and income brackets for Oklahoma residents, specifically for taxable years beginning on or after January 1, 2008, and ending any tax year which begins after December 31, 2015.

Scope change

The scope of the tax rates was updated to apply to taxable years beginning on or after January 1, 2008, and ending any tax year which begins after December 31, 2015.

TIMELINE

The effective date for the new tax rates was changed to apply to taxable years beginning on or after January 1, 2008, and ending any tax year which begins after December 31, 2015.

REQUIREMENT

The tax rates and income brackets for single individuals and married individuals filing separately were updated to reflect new thresholds and percentages.

Floor votes · House Mar 5, 2025

How they voted

24–6

Passed

Total votes 30

Mar 5, 2025

D Democratic6

6 Nay

100% Nay

R Republican24

24 Yea

100% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Mar 6, 2025

Lower · Passed

CR; Do Pass, amended by committee substitute Appropriations and Budget Committee

lower

Mar 5, 2025

House · Passed

House Vote: pass (24-6)

house

Feb 24, 2025

Lower · Passed

Recommendation to the full committee; Do Pass, amended by committee substitute Appropriations and Budget Finance Subcommittee

lower

Feb 14, 2025

Committee

Referred to Appropriations and Budget Finance Subcommittee

lower

Feb 12, 2025

Committee

Referred to Appropriations and Budget

lower

Feb 3, 2025

Introduced

First Reading

lower

2 primary · 0 co-sponsors