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): 8.742%
  • Common Exceptions at State Level: 
    • Prescription Medicine: Exempt
  • 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)
  • Low income, disabled, or taxpayers 65 and over may be eligible for a sales tax credit. 100% disabled veterans, their surviving spouse (not remarried) or authorized household member may be eligible for a sales tax exemption.

 

Personal Income Tax

  • Personal Income Tax Rate Range: Six brackets from .5% to 4.75% (on income greater than $7,200)
  • 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: SB 401, approved by the governor in May 2022, states: "For tax year 2022 and subsequent tax years, retirement benefits received by an individual from any component of the Armed Forces of the United States shall be exempt from taxable income." Previous law allowed for exclusion of greater of 75% or $10,000, but not to exceed amount included in federal Adjusted Gross Income. This exclusion is separate from other retirement income.
    • Military Disability Pay: Exempt
    • VA Disability Dependency & Indemnity Compensation Benefits: Exempt
    • SBP/SSBP/RCSBP/RSFPP: Same as retired pay.
Income Tax Comments: *Retirement income of up to $10,000 may be exempt from taxes.

 

Property Tax

  • Local municipalities average 0.90% 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.
    • 100% Disabled Veterans/Surviving Spouse (not remarried): 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: www.ok.gov/tax

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