Tax in Oklahoma: a complete guide
Understand the different tax responsibilities from state income and sales tax to property and estate tax with this Oklahoma tax guide.
Summary
In 2024, Oklahoma’s top state income tax rate is 4.75%.
The statewide sales tax in Oklahoma is 4.50%; however, local areas also impose their own sales taxes, which will raise the overall amount you pay.
Income from Social Security is not taxed in Oklahoma, meaning retirees can keep more of their money.
A financial advisor can help you develop a tax strategy so you keep more of your hard-earned money.
Oklahoma state income tax
Oklahoma’s state income tax operates on a progressive system. The rates range between 0.25% and 4.75%.
These ranges are broken down as follows for single filers:
| Oklahoma taxable income | tax rate |
|---|---|
| Oklahoma taxable income | tax rate |
| $0—$1,000 | 0.25% percent |
| $1,001—$2,500 | 0.75% |
| $2,501—$3,750 | 1.75% |
| $3,751—$4,900 | 2.75% |
| $4,901—$7,200 | 3.75% |
| $7,201 and above | 4.75% |
For those who are married and filing jointly, the ranges are as follows:
| Oklahoma taxable income | tax rate |
|---|---|
| Oklahoma taxable income | tax rate |
| $0—$2,000 | 0.25% |
| $2,001—$5,000 | 0.75% |
| $5,001—$7,500 | 1.75% |
| $7,501—$9,800 | 2.75% |
| $9,801—$12,200 | 3.75% |
| $12,201 and above | 4.75% |
The top state income tax rate is relatively low compared to some of Oklahoma's neighboring states. For example, Arkansas and Kansas have higher rates of 4.4% and 5.7%, respectively.
On top of your state income tax, residents of Oklahoma must also pay federal tax.
As of 2024, there are seven different federal income tax brackets ranging from 10% to 37%.
Oklahoma also has a 4.00% corporate income tax rate.
Get expert help with your taxes
If compiling and filing your taxes is an area you struggle with, a financial advisor can help.
They can take a deep dive into your finances and develop a tax strategy that meets your needs and could reduce your tax liability and save you money.
Unbiased can match you with a fiduciary financial advisor. Answer a few questions below, and we’ll find the right advisor to meet your needs:
Oklahoma sales tax
The statewide sales tax in Oklahoma is 4.50%.
Like with many other states in the US, local municipalities can also charge sales tax.
The average combined state and local sales tax is 8.99%; however, the maximum local sales tax rate is 7.00%, bringing the maximum sales tax in the state to 11.5%.
Certain items are exempt from sales tax or have their own special rates. These include:
Prescription drugs are sales tax-exempt
Certain items used in meals or food for school children are tax-exempt
Nearly all items used in production agriculture are tax-exempt
Oklahoma property tax
According to data from the U.S. Census Bureau, the average American household spends $2,690 on real estate property taxes.
In Oklahoma, however, this is much lower, with the median amount paid by homeowners standing at just over $1,400.
In Oklahoma, property taxes are collected on a county level, with each county using its own method of assessing and collecting taxes.
Oklahoma excise tax
Excise tax is a tax paid on specific goods or services,
In Oklahoma, you pay an excise tax when you purchase a vehicle. This excise tax is 3.25% for new vehicles and a reduced amount for used vehicles.
Oklahoma does have some exemptions for excise tax, including for disabled veterans, if the vehicle is being transferred within the family, transferring between trusts and trustees, or if the vehicle is being transferred as part of a divorce settlement.
Oklahoma motor tax
In Oklahoma, you can expect to pay a combined sales and excise tax rate of 4.5% on all vehicle purchases. This is broken down into a 1.25% sales tax and an excise tax of 3.25%.
For used car purchases, owners pay a flat fee of $20 for the first $1,500 they spend and must pay the combined rate of 4.5% for the remaining price.
When purchasing a vehicle, you must also factor in the fuel cost. In Oklahoma, you must pay taxes of $0.19 per gallon on gasoline and $0.16 per gallon on diesel.
Oklahoma estate tax
Oklahoma does not levy estate tax or inheritance tax.
However, federal estate tax can still apply if your estate is above a certain threshold ($13.61 million in 2024).
It’s also important to consider that you may have to pay estate taxes if you inherit an estate from someone in a state that levies it. It’s important to check local regulations to ensure you’re paying the right amount of tax.
Oklahoma retirement tax
Oklahoma has a lower cost of living than many other states in the US. This is a huge advantage for retirees, especially those on a fixed income looking to make their money go further.
For retirees aged 65 and older, Oklahoma offers an income tax exemption of up to $25,000, depending on your filing status.
Income from Social Security is also not taxed, meaning retirees hold on to more of their income than they would in other states.
The state also boasts lower housing, healthcare, and transportation costs than the national average, making it an attractive destination for US retirees.
The bottom line
For further tax guidance and to ensure you’re not paying more tax than you need to, it’s wise to speak to an expert.
A financial advisor can help you handle all your tax queries and ensure you’re not paying more tax than needed.
Frequently asked questions
Senior Content Writer
Rachel is a Senior Content Writer at Unbiased. She has nearly a decade of experience writing and producing content across a range of different sectors.