Capital gains: Taxed as ordinary income.
What changed: Six brackets collapsed to three and top rate cut from 4.75% to 4.5% on Jan. 1, 2026 (HB2764), with triggers for further cuts.
| January 1, 2026 | Oklahoma consolidates brackets and cuts top rate to 4.5% (HB2764) Six brackets became three and the top rate dropped from 4.75% to 4.5%. The law also adds triggers for further 0.25-point cuts when revenue conditions are met. | In effect |
California's combined top marginal rate reaches 14.4% and NYC residents face up to 14.776%, even as Georgia, Indiana, Kentucky and six other states cut income tax rates on January 1.
Eight states cut individual income tax rates for 2026 while New York extends its temporary surtaxes on high earners, reshaping the state bill for affluent households and anyone weighing a move.