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Oklahoma's total tax revenue collections up slightly compared to last fiscal year

KOSU | By Lionel Ramos

Published July 10, 2025 at 8:21 AM CDT

A beardless Oklahoma Gov. Kevin Stitt talks about slowly eliminating the state income tax during a press conference, Tuesday, Oct. 3, 2023, at the Oklahoma State Capitol. It's been his mission for much of his time in office.

Oklahoma's tax revenues are up by a fraction of a percent compared to this time last year, according to a June report by the state treasury department. It's largely attributed to a tax lawmakers want to get rid of — and that makes up much of the state's budget.

By the end of the 2025 Fiscal Year, which ended last month, total tax revenue collections in Oklahoma amounted to $16.9 billion. That's up $38.6 million — or 0.2% — compared to this time last year.

About a third of that revenue, or $6.5 billion, came from individual and corporate income tax collections, which are up by $405 million compared to the last fiscal year.

But, lawmakers cut state income taxes by a quarter of a percent this legislative session with House Bill 2764 and set further cuts to trigger given revenue increases of at least 125% year-over-year, starting in 2028.

By then, the move is expected to cost the state about $350 million in lost revenue yearly, according to House Fiscal Impact Reports.

Opponents of the cuts fear that will mean fewer essential government support services for Oklahomans to access, while wealthy corporations continue to win by paying less and less to the state.

Aanahita Ervin is a fiscal policy analyst at the center-left think tank Oklahoma Policy Institute. In an article last updated on June 30, Ervin explains the concerns her organization — and many Democrats in the legislature have with cutting the state income tax. The relatively modest savings middle and low-income earners will see, Ervin wrote, come at a steep cost.

"This tax cut bill forces the state to do less for Oklahoma communities by limiting financial resources," Ervin wrote. "Lawmakers had better options of providing tax relief. They could have modernized the Sales Tax Relief Credit to provide substantial and targeted relief to low- and middle-income Oklahoma families — a policy that could also be adjusted during economic downturns."

But measures to reform the Sales Tax Relief Credit, which currently gives qualified Oklahomans $40 back in taxes for certain deductions at the end of the year, have been proposed by Democrats like Sen. Julia Kirt in 2024 and House Minority Leader Rep. Cyndi Munson this year.