What Are the Different Tax Rates in Oklahoma?
Gain a clear understanding of Oklahoma's tax landscape. Learn how state-level rules and local levies combine to shape your financial obligations.
Oklahoma’s tax system is a composite of levies at both the state and local levels, including taxes on income, sales, and property. The total tax obligation for any person or entity is a blend of these different assessments. Because some taxes are highly localized, rates can vary significantly from one municipality to another.
Oklahoma Individual Income Tax
Oklahoma has a flat individual income tax rate of 4.75%. This single rate applies to all levels of taxable income, which simplifies the tax calculation process.
To reduce taxable income, Oklahoma offers a standard deduction. For the 2025 tax year, the standard deduction is $7,350 for single individuals and those married filing separately. The deduction is $14,700 for married couples filing jointly and qualifying surviving spouses, and $11,000 for those filing as head of household. Taxpayers can choose to take the standard deduction or itemize their deductions, whichever results in a lower tax liability.
Beyond the standard deduction, taxpayers may be able to lower their state tax bill through various credits. Oklahoma provides a credit for child care and child tax expenses, calculated as the greater of 5% of the federal Child Tax Credit or 20% of the federal Child and Dependent Care Credit. This credit is not available to those with a federal adjusted gross income over $100,000. The state also offers a credit for low-to-moderate-income workers, which is 5% of the federal Earned Income Tax Credit (EITC).
State and Local Sales Taxes
The statewide sales tax rate in Oklahoma is 4.5%. This tax is applied to the sale of most goods and some services across the state.
Local taxes levied by cities and counties are added to the 4.5% state rate. This means the total sales tax paid by a consumer can vary significantly depending on the location of the purchase, resulting in some of the highest combined rates in the country.
For example, the total sales tax in Oklahoma City can reach up to 8.625%, while in Tulsa, the combined rate is 8.517%. In Norman, consumers pay a combined rate of 8.75%. These variations are a result of different tax rates set by local governments to fund services and projects.
While most tangible goods are subject to sales tax, certain items are exempt. Unprepared food from grocery stores is exempt at the state level. Additionally, 100% disabled veterans and their surviving spouses may be eligible for a full exemption from sales tax on their purchases if they receive a specific permit from the Oklahoma Tax Commission.
Understanding Oklahoma Property Taxes
Property taxes in Oklahoma are administered at the local level, with no statewide property tax. County assessors determine the market value of real and personal property. The tax amount is tied to the funding needs of the specific county, city, and school district.
A property’s fair market value is multiplied by an assessment ratio to determine its assessed value. The assessment ratio for real property, including homes and land, is between 10% and 13.5% of its fair market value. For personal property, the ratio is between 10% and 15%.
The assessed value is then multiplied by the local millage rate to arrive at the final tax amount. A “mill” is $1 of tax for every $1,000 of assessed value. Millage rates are a composite of the individual rates set by various local taxing authorities, such as the county government, city, and school district, to fund their respective budgets.
Homeowners can reduce their property tax liability through the homestead exemption, which removes $1,000 from the assessed value of a primary residence. An additional “double” homestead exemption is available for homeowners who meet specific income requirements.
Other Notable State Taxes
Oklahoma levies several other taxes that contribute to state revenue. The corporate income tax is a flat 4% rate applied to the net income of corporations operating within the state.
A one-time vehicle excise tax is due when a vehicle is purchased and registered in Oklahoma for the first time or when a new resident brings a vehicle from another state. The tax is calculated based on the vehicle’s purchase price and is distinct from annual registration fees.
The state also imposes a gross production tax on the extraction of oil and natural gas. This severance tax is paid by oil and gas producers, and its revenue impacts the state’s budget and the funding available for public services.