Governor Stitt Signs Bill to Accelerate Path to Zero Income Tax, Secure Oklahoma’s Historic Savings

OKLAHOMA CITY (April 23, 2026) - Governor Kevin Stitt has signed House Bill 4072 into law, creating the Oklahoma Taxpayer Endowment Trust Fund to eventually eliminate the state’s income tax. The Governor called on the Legislature to establish this fund in his State of the State address.

Modeled after existing funds in other conservative, low- or no-income tax states, this long-term investment fund will grow Oklahoma’s savings and one day eliminate the need for an income tax. The legislation invests $200 million of existing state savings and locks it away, so it can grow.

“This is a pivotal moment for Oklahoma and our path to zero income tax. During my administration, we’ve been disciplined and we’ve built up over $3 billion in savings,” said Governor Stitt. “This is about securing Oklahoma’s future, growing our savings wisely, investing responsibly, and leaving our state stronger for the next generation.”

The fund is structured with strict safeguards, including a lock-up period and protections to ensure the principal remains untouched while it grows. Once the fund matures, a limited portion of the investment earnings will then be transferred into the state’s General Revenue Fund. States like Alaska, North Dakota, and Wyoming have used a similar approach to invest savings and use the payouts to fund core services.

“Just like families set aside money for a rainy day or unexpected emergencies, the Oklahoma Taxpayer Endowment Trust Fund is a serious investment in the state’s financial future that will give all taxpayers some peace of mind,” said Senate Appropriations Chairman Chuck Hall. “Over time, it will generate new revenue to support core government services and allow for targeted investments that benefit all Oklahomans. Saving now is a prudent financial move that will pay dividends later.”

“I believe one of the most responsible things we can do is plan not just for the next year, but for the next generation,” said House Appropriations and Budget Chairman Trey Caldwell. “The Oklahoma Taxpayer Endowment Trust Fund allows us to take a portion of today’s savings and invest it in a way that strengthens our long-term financial position while creating a path toward eliminating the state income tax.”

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