2016 Tax Cut Calculator
On January 1st, Oklahoma’s top income tax rate was lowered from 5.25 to 5.0 percent. This is occurring as the state faces a $900 million budget shortfall for next year and has declared a “revenue failure” this year which led to 3 percent mid-year budget cuts. This tax cut is expected to reduce state revenues by $147 million in the upcoming budget year, forcing even deeper cuts that will hurt our economy and harm our schools, health care, public safety, state parks and other public services.
The median Oklahoma household will get only $29 from the cut to the top rate, while two out of five households will get nothing at all because none of their income is taxed at the top rate. Meanwhile, those in the top 1 percent of households will receive, on average, $2,009.
Below you can use the 2016 Tax Cut Calculator to roughly determine how much your household will receive from the tax cut and compare your tax cut to those at other incomes. The calculator assumes you will claim deductions equal to the average household in your income bracket. These are estimates only and should not be used
If you, like the majority of Oklahomans, believe it’s short-sighted to be cutting taxes when our schools and other core services are facing severe budget cuts, we hope you will consider making a donation of all or some of your tax cut to OK Policy to help us fight for sensible, fiscally-sound tax and budget policies, or to a non-profit organization that is working to help Oklahomans in need who don’t make enough money to benefit from the tax cut.