Oklahoma

Sales Tax

  • Statewide: 4.5%
  • Counties can levy an additional sales tax of no more than 7.0%.
  • Current average sales tax (with local taxes included): 8.79%
  • Common Exceptions at State Level: 
    • Prescription Medicine: Exempt
    • Groceries: Exempt as of August 2024 (HB 1955)
  • Gasoline Tax: 38.40 cents/gallon (Includes all state, local, and federal taxes)
  • Diesel Fuel Tax: 44.40 cents/gallon (Includes all state, local, and federal taxes)
  • Limited income, disabled, or taxpayers 65 and over may be eligible for a sales tax credit. 100% disabled veterans, their surviving spouse or authorized household member may be eligible for a sales tax exemption.

 

Personal Income Tax

  • Personal Income Tax Rate Range: Six brackets from .25% to 4.75% (on income greater than $7,200, or $12,200 if married filing jointly)
  • Standard deduction: Single Filing Status: $6,350. Married Filing Jointly: $12,700
  • Personal Exemption Allowance: $1,000. Dependent Exemption: $1,000
  • Itemized Deductions Allowed?: Yes, subject to limitations
  • Retirement Income
    • Social Security: Exempt
    • IRAs: Taxable at ordinary income tax rates*
    • 401Ks/Defined contribution employer retirement plans: Taxable at ordinary income tax rates*
    • Private pensions: Taxable at ordinary income tax rates*
    • Public Pensions: Civil service retirement income (in lieu of Social Security) exempt. Other income is taxable at ordinary income tax rates*
  • Military Pay
    • Active Duty Pay: Exempt
    • Military Retirement Pay: Exempt
    • Military Disability Pay: Exempt
    • VA Disability Dependency & Indemnity Compensation Benefits: Exempt
    • SBP/SSBP/RCSBP/RSFPP: Can exclude $10,000.
Income Tax Comments: *Retirement income of up to $10,000 may be exempt from taxes.

 

Property Tax

  • Local municipalities average 0.85% of the property's assessed value.
  • Calculation of assessed value: 100% of fair market value.
  • Relief programs for:
    • Owner-Occupied: Up to $1,000 reduction of assessed value allowed. Limit of 3% increase annually on assessed value. Additional exemption of $1,000 if income is less than $20,000.
    • 65 and Over or Totally Disabled: Up to $200 refund if income is less than $12,000. Also may be eligible for freeze on value if income less than median income for county of residence.
    • Disabled Veterans/Surviving Spouses: Up to 100% tax exemption available depending on service-connected disability percentage.
  • Personal Property Tax: Yes. Rates and exemptions vary.

 

Inheritance & Estate Taxes: None

 

Department of Revenue website: https://oklahoma.gov/tax.html

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