Oklahoma 2026 Regular Session

Oklahoma House Bill HB1391

Introduced
2/3/25  
Refer
2/4/25  

Caption

Revenue and taxation; income tax; adjustments; retirement benefits; effective date.

Impact

If enacted, this legislation would further amend Section 2358 of the Oklahoma Statutes by explicitly stating new caps on retirement benefits, raising them to $20,000 for tax years beginning in 2025 and beyond. This change represents a substantial increase compared to previous caps and could significantly benefit retirees, especially those with lower income. However, the implications of such changes spark a discussion on how this will affect the state's overall tax revenue and budget, especially concerning funding for public services.

Summary

House Bill 1391 pertains to revenue and taxation adjustments specifically focusing on the taxable income and adjusted gross income calculations for Oklahoma. The bill proposes amendments to existing statutes to modify the caps on retirement benefits adjustments. By doing so, it aims to provide clearer provisions regarding how retirement benefits are taxed at the state level, which could potentially ease the tax burden on pensioners and retirees significantly.

Contention

The introduction of HB 1391 may face scrutiny regarding its potential impact on tax revenues. Critics argue that while the bill could help elderly citizens who are reliant on retirement benefits, it could also lead to a reduction in state funds for essential services such as education and healthcare. Furthermore, the anticipation of the shift in tax burdens between different socio-economic groups and how this supports the wider Oklahoma community will likely be central to discussions surrounding this bill.

Companion Bills

OK HB1391

Carry Over Revenue and taxation; income tax; adjustments; retirement benefits; effective date.

Previously Filed As

OK HB1391

Revenue and taxation; income tax; adjustments; retirement benefits; effective date.

OK HB2740

Revenue and taxation; taxations; rates; income tax; exemptions; effective date.

OK HB2194

Revenue and taxation; retirement benefits; exemption; effective date.

OK HB2646

Revenue and taxation; adjustments; wagering; tax year; effective date.

OK HB2190

Revenue and taxation; Oklahoma taxable income and adjusted gross income; exemption; retirement income; effective date.

OK HB1927

Revenue and taxation; Oklahoma taxable income and Oklahoma adjusted gross income; retirement income; exemption; effective date.

OK HB1599

Revenue and taxation; income tax; pensions; taxable income; exemption; effective date.

OK HB1009

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

OK HB1248

Revenue and taxation; Senior Service Corps Act of 2025; adjustments to Oklahoma adjusted gross income and taxable income; support services; schools; effective date.

OK HB1200

Revenue; taxation rates; income; exemptions; deductions; effective date.

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