Revenue and taxation; individual income tax; tax rates; effective date.

HB 1806 amends Oklahoma's individual income tax code to reduce the top marginal tax rate from 5.50% to 4.75% for tax years beginning in 2026. The bill also eliminates the deduction for federal income taxes when calculating taxable income, affecting all Oklahoma residents and nonresidents who pay individual income tax. This change lowers tax burdens primarily for high-income earners, as the reduced top rate applies to income above specific thresholds for both single filers and married couples filing jointly. The new tax brackets and rules will take effect for the 2026 tax year.