OKLAHOMA CITY (May 29, 2025)—Oklahoma Council of Public Affairs President Jonathan Small today praised the governor and state lawmakers for cutting Oklahoma’s penalty on work, the personal income tax, and putting the tax on a gradual path to full repeal without raising other taxes.

“In recent years, other states in our region and across the nation have cut taxes and now have a substantially lower income tax burden than Oklahoma,” Small said. “That puts our state at a distinct disadvantage when it comes to attracting investment and incentivizing new job creation. By cutting the state’s penalty on work and putting the tax on a path to zero, without raising other taxes, state leaders are retaking lost ground and creating a better future for all Oklahomans.”

House Bill 2764 cuts Oklahoma’s top income-tax rate from 4.75 percent to 4.5 percent starting in 2026 and restructures the current six income tax brackets into three.

In addition, HB 2764 mandates future reductions in the top income-tax rate when state tax collections grow by a specific amount, allowing for that process to be repeated over and over until the state’s penalty on work is completely repealed.

HB 2764 easily passed through both chambers of the Oklahoma Legislature and was signed into law by Gov. Kevin Stitt on May 28.

Small praised all those who voted in favor of the legislation, but singled out several leaders, including Stitt, House Speaker Kyle Hilbert, Senate President Pro Tempore Lonnie Paxton, House Appropriations and Budget Committee Chairman Trey Caldwell, Senate Appropriations Chair Chuck Hall, state Rep. Mark Lepak, and state Sen. Micheal Bergstrom.

“The income tax is a penalty on work and investment, which makes it more harmful to economic growth and job creation than most taxes while also allowing the government to seize the fruit of Oklahomans’ labor,” Small said. “Research has long shown that states with no income tax are outperforming states that tax work and investment, which is why other states have been working to eliminate their income tax. By putting Oklahoma on the same path, our state leaders have sent a strong message that Oklahoma is a place where increasing wages and job opportunities for all citizens is a priority.”