Recently enacted SB 170 repeals a statutory provision that would have eventually decreased the top personal income tax rate to 4.85% if a certain revenue target was reached. As a result and effective November 1, 2017, the maximum income tax rate will remain at 5.0%.

Legislation enacted in 2014 would have gradually lowered Oklahoma's top income tax rate to 4.85% over several years. SB 1246 reduced the top personal income tax rate from 5.25% to 5.0% in tax year 2016 because the general revenue target was reached. (SB 1246, signed by the governor on April 28, 2014.)

Other legislation changes standard deduction amounts

Recently enacted HB 2348 unties the state standard deduction amounts from the limits established and adjusted annually by the IRS. For tax year 2017 and all future tax years, the following standard deduction amounts apply:

— $6,350 for single or married filing separately;
— $12,700 for married filing jointly or qualifying widower with dependent child;
— $9,350 for head of household.

For more on Oklahoma income tax, go to the Tax Commission's website.

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