Overview of Oklahoma Taxes
Oklahoma has a progressive income tax, with a top marginal rate in the bottom half of all states. Property taxes are also below the national average. Oklahoma’s average sales tax (including both state and local) is among the highest rate in the country.
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Your Income Taxes Breakdown
| Tax Type | Marginal Tax Rate | Effective Tax Rate | 2023 Taxes* |
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* These are the taxes owed for the 2023 - 2024 filing season.
Your 2023 Federal Income Tax Comparison
- Your marginal federal income tax rate
- Your effective federal income tax rate
- Your federal income taxes
Total Estimated 2023 Tax BurdenIncome Tax $ Sales Tax $ Fuel Tax $ Property Tax$ Total Estimated Tax Burden $ Percent of income to taxes = % | $ |
- About This Answer
Our income tax calculator calculates your federal, state and local taxes based on several key inputs: your household income, location, filing status and number of personal exemptions.
How Income Taxes Are Calculated
- First, we calculate your adjusted gross income (AGI) by taking your total household income and reducing it by certain items such as contributions to your 401(k).
- Next, from AGI we subtract exemptions and deductions (either itemized or standard) to get your taxable income. Exemptions can be claimed for each taxpayer as well as dependents such as one’s spouse or children.
- Based on your filing status, your taxable income is then applied to the the tax brackets to calculate your federal income taxes owed for the year.
- Your location will determine whether you owe local and / or state taxes.
- Last Updated: January 1, 2024
When Do We Update? - We regularly check for any updates to the latest tax rates and regulations.
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Taxes in Oklahoma
Oklahoma State Tax Quick Facts
- Income tax: 0% - 4.75%
- Sales tax: 4.85% - 11.5%
- Property tax: 0.90% average effective rate
- Gas tax: 19 cents per gallon of regular gasoline and diesel
For the 2022 tax year, Oklahoma’s top income tax rate is 4.75%. That puts Oklahoma’s top income tax rate in the bottom half of all states. The Sooner State’s property taxes are also below average, with an average effective rate of 0.90%, 24th-highest in the U.S.
It isn’t all good news for Oklahoma taxpayers, however. When considering both state and local sales taxes, the state has an average rate of 8.76%. Of course, that tax varies widely depending on where in the state you are, just as the income tax rates vary depending on income and other factors.
A financial advisor can help you understand how taxes fit into your overall financial goals. Finding a financial advisor doesn't have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Oklahoma Income Taxes
Similar to the federal government, Oklahoma has an income tax that applies higher rates to higher income levels. The rates range from 0% to a top rate of 4.75%, based on the income brackets shown below.
These tax rates apply to Oklahoma taxable income, which includes specific types of income after all deductions and exemptions. Itemized deductions are allowed in the state of Oklahoma only for filers who itemized deductions on their federal return. Itemized deductions are identical to federal itemized deductions. Itemized deductions in Oklahoma are capped at $17,000. This excludes charitable contributions and medical expenses, which are not subject to the aforementioned cap.
The 2023, the Oklahoma standard deduction is $6,350 for single filers or married persons filing separately and $12,700 for married persons filing jointly. Oklahoma also has a personal exemption of $1,000 for each filer, with additional exemptions available for each dependent listed by the filer.
Oklahoma Sales Tax
The state sales tax rate in Oklahoma is 4.50%. In addition to that rate, Oklahoma has one of the highest local sales taxes in the country, as the combined city and county rates are as high as 11.5%. The table below shows total state and local sales tax rates for every county in Oklahoma.
Most goods and services in Oklahoma are subject to these rates. Among the types of services you can expect to pay sales tax on are telecommunications, hotel rooms, advertising, health club dues, admissions tickets (to sporting events or movies, for example) and printing services.
Oklahoma is one of just a handful of states that levies sales taxes on all kinds of food, with the full state and local rates applying to groceries and prepared food alike. (By contrast, most states have variable rates for different kinds of food, with many charging no sales tax at all on groceries.) Low income taxpayers can offset this tax by claiming the Grocery Tax Credit on their income tax return. The credit is equal to $40 per household member.
Oklahoma taxes clothing purchases, but has a sales tax holiday where clothing and shoe purchases under $100 are exempt from sales tax for one weekend. The sales tax holiday is usually the first weekend of August, to align with back-to-school shopping.
Oklahoma Property Tax
The average Oklahoman homeowner pays just $1,351 per year in property taxes. That places Oklahoma among the 10 lowest payments in the U.S. However, it’s important to keep in mind that home values are also below average in the Sooner State. Therefore, the effective property tax rate (taxes as a percentage of home value) is 0.90%. For more information on settling down in the Sooner State, take a look at our Oklahoma mortgage guide.
Oklahoma Gas Tax
According to the American Petroleum Institute, the state gas tax in Oklahoma is 19 cents per gallon of regular gasoline and 16 cents per gallon of diesel.
Oklahoma Cigarette Tax
A pack of cigarettes in Oklahoma is subject to state taxes totaling $2.03, the 18th-highest rate in the U.S.
Oklahoma Alcohol Tax
There are a variety of excise taxes on alcoholic beverages in Oklahoma. For most types of beer, these will total 40 cents per gallon, while liquor is taxed at a rate of $5.56 per gallon.
- Much of Oklahoma lies in Tornado Alley, a section of the middle United States that is especially prone to strong storms. The state sees an average of about 55 tornadoes per year.
- The only extended population decline in Oklahoma’s history occurred during the Dust Bowl, a spate of severe droughts and dust storms that struck the area during the 1930s.
