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Gov. Kevin Stitt Signs Bill to Reduce State Income Tax Rate

  • Governor Kevin Stitt signed House Bill 2764 on May 28, 2025, reducing Oklahoma's state income tax rate from 4.75% to 4.5%.
  • The tax cut followed ongoing efforts by Stitt and the Republican-led legislature to consolidate tax brackets and establish a path to zero income tax.
  • The new law eliminates three tax brackets for low-income earners and includes triggers for further cuts based on state revenue exceeding expectations.
  • The quarter-point cut is expected to reduce state revenue between $160 million and $360 million annually and will save taxpayers varying amounts depending on income.
  • Supporters believe the tax cut will attract businesses and families, while critics question its timing amid economic uncertainty and minimal savings for many residents.
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oksenate.gov broke the news in on Tuesday, May 27, 2025.
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