Resolution to raise Income Tax Deduction

Resolution to raise the Oklahoma Income Tax Standard Deduction to the Poverty Rate

Whereas: The poverty rate in Oklahoma for a one-person household in 2024 was $15,0601. Oklahoma began collecting state income tax for an individual at $7,350 (standard deduction of $6350 + personal exemption of $1,000)2. Oklahoma taxed up to $7,710 of poverty income charging up to $178 in income tax.

Whereas: The poverty rate in Oklahoma for a two-person household in 2024 was $20,4401. Oklahoma began collecting state income tax for a two-person household at $14,700 (standard deduction of $12,700 + personal exemption of $2000)2, taxing up to $6,740 of poverty income charging up to $40.00.

Whereas: All Oklahomans, regardless of income, pay property tax (renters pay with the rent payment), gas tax, sales tax, State Park fees, vehicle tags, and taxes on utilities. This strategy of taxation taxes those with the least income at a much higher total tax rate than those who make more than poverty income.

Whereas: Oklahoma has a surplus of tax revenue, increasing the standard deduction for single filers to the poverty level, leaving the personal exemption at $1000, will relieve those living in poverty from paying Oklahoma income tax and will benefit all single Oklahoma taxpayers.

Whereas: Oklahoma has a surplus of tax revenue, increasing the standard deduction for two-person filers to the poverty level, leaving the personal exemption at $2000, will relieve those living below the poverty from paying income tax and will benefit all two-person filers.

  1. 2024 Poverty Guidelines https://aspe.hhs.gov/topics/poverty-economic-mobility/poverty-guidelines/prior-hhs-poverty-guidelines-federal-register-references/2024-poverty-guidelines-computations
  2. 2025 Poverty Guidelines https://aspe.hhs.gov/topics/poverty-economic-mobility/poverty-guidelines
  3. https://oklahoma.gov/content/dam/ok/en/tax/documents/forms/individuals/current/511-Pkt.pdf

THEREFORE:

We support increasing the Oklahoma Tax Exemption to meet the poverty level for single and married filing jointly (two-person household) as set by the Health Human Services Poverty Guidelines.