Most states levy an income tax on their residents that is in addition to the federal income tax. Laws vary from state to state but in most states the state income tax is a tax on the annual earnings of individuals, corporations, trusts, limited liability companies, and other legal entities.
There are nine states that do not have a state income tax—including Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. But New Hampshire levies a tax on capital gains and Washington state recently enacted a tax on extraordinary profits from the sale of financial assets over $250,000.
In Oklahoma, residents are subject to state income tax in addition to the federal income tax. The state income tax applies to the annual earnings of individuals, corporations, trusts, limited liability companies, and other legal entities. The tax rates and brackets for individuals and corporations are defined by state statutes, and these can change over time through legislative action. Oklahoma's tax system is progressive for individual income, meaning that the rate increases as income rises. The state also offers various deductions, exemptions, and credits that can affect the overall tax liability for residents and businesses. It's important for residents and entities in Oklahoma to comply with state tax laws and file annual state income tax returns. Unlike the states mentioned that do not have a state income tax or only tax certain types of income, Oklahoma has a more traditional state income tax structure.