Oklahoma Income Tax 2026

Oklahoma has a graduated income tax for 2026. The standard deduction is $6,350 (single) / $12,700 (married filing jointly). VERIFIED against the enrolled HB 2764 statutory text (signed 2025). Subsection D of 68 O.S. 2355, captioned 'For tax year 2026 and for subsequent tax years,' prescribes EXACTLY this schedule. Single/married-separate: 0% on first $3,750; 2.5% on the next $1,150 (to $4,900); 3.5% on the next $2,300 (to $7,200); 4.5% on the remainder. MFJ/HOH/surviving-spouse: 0% on first $7,500; 2.5% on next $2,300 (to $9,800); 3.5% on next $4,600 (to $14,400); 4.5% on remainder. HB 2764 cut the top marginal rate from 4.75% to 4.5% and consolidated the prior six-rate schedule into three NONZERO rates (2.5/3.5/4.5) plus a 0% bracket. NOTE on common confusion: press releases say 'three brackets' (counting the three nonzero rates); secondary sources (e.g. incometaxbystate.com) cite a 0.25%/0.75%/1.75%/2.75%/3.75%/4.75% or condensed 0.25%/2.75%/4.5% schedule, but the bill confirms 0.25%/2.75% rates belong to the 2024-2025 transition years (subsection C), NOT tax year 2026 — those secondary figures are wrong for 2026. Standard deduction is statutorily frozen at 2017 federal levels by HB 2348 (NOT inflation-indexed): $6,350 single/MFS, $9,350 HOH, $12,700 MFJ — unchanged for 2026. Personal exemption $1,000/person; personal/dependent exemptions and the $1,500 joint-filing credit limited to filers with MAGI <= $500,000. No local/municipal income taxes. Social Security fully exempt. Up to $10,000/person retirement-income exclusion (pensions, 401(k), IRA); military retirement 100% exempt (2025+). HB 2764 adds a revenue-trigger that further cuts all rates in 0.25-point increments toward 0% when revenue benchmarks are met; no additional cut is triggered for 2026 (subsection D rates above are the 2026 rates).