Oklahoma Income Tax Calculator

Taxes in Oklahoma

Oklahoma State Tax Quick Facts

• Income tax: 0.25% - 4.75%
• Sales tax: 4.5% - 8.99%
• Property tax: 0.85% 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 0.85%, 25th-lowest 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. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one 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 2.50% 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 2022 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 8.99%. The table below shows total state and local sales tax rates for every county in Oklahoma, as well as the largest cities.

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 $1,424 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 0.85%, the 25th-lowest overall. At the county level, rates range from 0.42% in Murray County to 1.22% in Cleveland County.

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.