The decision was made at a cabinet meeting held at the council offices in New Road on Tuesday and could see all subsidised services cut by June 2016.
It would effect 118 bus routes, some of which could be cut completely and others which could be run less frequently (see below for full list)
Green Party county councillor Sam Coates said: “The vote to end bus subsidies is terrible news for those communities who rely on them.
“As people get older they may drive less and those who need help to get around may be isolated.
“We will be putting the case for a small additional increase in council tax to save as many vital services as possible.”
OCC currently pays £3.7 million each year to the county’s bus operators to support low use bus routes.
The cuts have been made as the council attempts to save £7.5m from its supported transport services and forms part of wider £290m cuts the council needs to make by 2018.
OCC leader Ian Hudspeth announced last month the council could also need to save an extra £50m by 2020.
Cabinet member for transport David Nimmo Smith said: “As a county council we are faced with very difficult choices.
“It is really important to understand that more than 90 per cent of bus services in Oxfordshire would be unaffected by these proposals.”
The decision will now go to full council as part of the budget setting process in early 2016.