June 4, 2021
Oklahoma reduces tax rates for corporations, individuals, pass-through entities and banks
A trio of bills — HB 2960, HB 2962 and HB 2963 — signed by Oklahoma Governor Kevin Stitt on May 21, 2021, reduces the income tax rates for corporations, individuals and pass-through entities, respectively. Another bill, HB 2961, signed by the governor on May 24, 2021, reduces the rate of the bank privilege tax.
Effective for tax years beginning on or after January 1, 2022:
Effective for tax years beginning on or after January 1, 2022, each of the individual income tax rates is reduced as follows:
Given that the income tax rate reduction bills were signed into law on May 21, 2021, and May 24, 2021, relevant changes will be considered a second-quarter event for financial statement purposes for Oklahoma calendar-year taxpayers.
Further, starting in 2022, Oklahoma taxpayers will need to take these rate reductions into consideration when calculating their estimated tax payments and income tax withholding for their employees.