Another state lawmaker is urging his colleagues to repeal Oklahoma’s personal income tax, which is often referred to as the state’s penalty on work and investment.

State Sen. Dusty Deevers, R-Elgin, has filed two bills that would get rid of the personal income tax, either in one fell swoop or gradually over time.

Senate Bill 305 would immediately eliminate the state individual income tax.

Senate Bill 308 would gradually reduce the income tax by 1 percentage point per year until it is fully eliminated by 2029. Under the bill, Oklahoma’s 4.75 percent income-tax rate, which applies to most families, would be cut to 3.75 percent in the current 2025 tax year.

“Eliminating the state income tax could save the average Oklahoma household $2,000-$3,000 per year,” Deevers said. “Eliminating Oklahoma’s income tax will empower families, boost local businesses with reinvestable capital, and position the state as a premier destination for talent, innovation, and enterprise, creating a thriving economy driven by growth, opportunity, and long-term prosperity.”

Deevers is at least the third lawmaker to file legislation that would eliminate the state’s personal income tax.

State Sen. Micheal Bergstrom, R-Adair, has filed Senate Bill 1, which would cut the state personal income tax from its current rate of 4.75 percent to 4.5 percent in the 2025 tax year.

The bill provides for additional, automatic income-tax reductions of another quarter-point every year that the Oklahoma Legislature has at least $400 million in growth revenue available.

State Rep. Jay Steagall, R-Yukon, has filed House Bill 1009, which would reduce the personal income tax rate by equal amounts every year for 10 years. Under that bill, Oklahoma’s personal income tax would completely phase out by 2035.

Gov. Kevin Stitt, who urged lawmakers to cut the state’s income tax rate to 3.99 percent in prior years, recently reiterated his support for tax cuts.

In a Jan. 13 post on X, Stitt wrote, “When we have excess revenue, and Oklahoma certainly does, that means it’s time for tax cuts. Return money to taxpayers and limit the growth of government! This will continue to be a top priority heading into our legislative session.”

In another post made the same day, Stitt wrote, “We’re starting to fall behind other states and their tax rates. We can’t allow it—we have to stay competitive. The Legislature must send me a bill cutting the income tax!”

Oklahoma currently has one of the highest personal income-tax rates in the region.

Oklahoma’s current top rate of 4.75 percent is higher than the income-tax rates imposed in several neighboring states, including Texas (which has no personal income tax) and Colorado (4.4 percent). When Arkansas Gov. Sarah Huckabee Sanders took office in 2023, the top individual tax rate in Arkansas was 4.9 percent, which was higher than in Oklahoma. Now it has a top rate of 3.9 percent. Similarly, the top rate in Missouri fell to 4.7 percent starting this month, leapfrogging Oklahoma.

Among bordering states, only Kansas and New Mexico have higher personal income-tax rates than Oklahoma.

Oklahoma’s top personal income tax rate is also imposed at a much lower income level than many states. The 4.75-percent rate kicks in on income of $7,200 for single filers and $12,200 for joint filers and lower tax rates are imposed for individuals below those thresholds. While only 1.2 percent of all federal tax returns are filed at the top federal income-tax level, more than 80 percent of Oklahomans land in the state’s top income-tax bracket.

Deevers said the state should rely on consumption taxes rather than taxing income, which he said “could be more appropriately referred to as the ‘labor tax’” and “stands as an affront to liberty and justice.”

He said individuals who argue that cutting taxes is not possible “have not considered the ‘radical’ idea that the government does not need to spend so much money.”

“By taxing income, the government declares itself master over and possessor of the labor and property of its citizens, violating their God-given rights to life, liberty, and property,” Deevers said. “Economically, income taxes are a disincentive to growth. When a person’s earnings are forcibly taken, the government not only robs them of their property (their money) but also of the opportunity to reinvest it into productive endeavors. This confiscatory system stifles creativity and rewards inefficiency.”