Oklahoma State Tax Guide

State tax rates and rules for income, sales, property, fuel, cigarette, and other taxes that impact Oklahoma residents.

Bottom Line

Middle-Class Families: Not Tax-Friendly (Go to the Kiplinger Tax Map for Middle-Class Families)

Retirees: Mixed Tax Picture (Go to the Kiplinger Tax Map for Retirees)

One of the first things Oklahoma residents might notice about taxes in their state is an income tax schedule that puts most people in the state's highest bracket. But, on the bright side, at least the rates recently dropped starting with the 2022 tax year.

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Oklahoma also has one of the highest combined state and local sales tax rates in the nation, at an average of 8.99%. Both groceries and clothing are subject to sales tax, too.

Oklahoma falls in the middle when the median property tax rates for all 50 states are compared. That helps soften the impact of Oklahoma's other main taxes. Fuel taxes are really low in the state, too.

Oklahoma Income Taxes

Oklahoma Income Tax Range

Low: 0.25% (on up to $1,000 of taxable income for single filers and up to $2,000 for married joint filers)

High: 4.75% (on taxable income over $7,200 for single filers and over $12,200 for married joint filers)

Oklahoma Taxation of Social Security Benefits

Social Security benefits are not taxed by the state.

Oklahoma Tax Breaks for Other Retirement Income

Up to $10,000 of federally-taxed income from private, federal government, and designated Oklahoma state and local government retirement plans is exempt. In addition, federally-taxed income from the federal Civil Services Retirement System in lieu of Social Security is fully exempt.

Military pensions and Railroad Retirement benefits are fully exempt.

Oklahoma Sales Tax

4.5% state levy. Localities can add as much as 7%, and the average combined rate is 8.99%, according to the Tax Foundation.

  • Groceries: Taxable
  • Clothing: Taxable
  • Motor Vehicles: Taxable (1.25%), and 3.25% excise tax applies
  • Prescription Drugs: Exempt

Oklahoma Real Property Taxes

In Oklahoma, the median property tax rate is $845 per $100,000 of assessed home value.

Oklahoma Property Tax Breaks for Retirees

Residents 65 or older who's gross household income is $12,000 or less may qualify for a $200 rebate on their property taxes. The rebate can be claimed on the resident's Oklahoma income tax form.

For 2022, senior citizens with household income of $73,200 or less may also qualify for a valuation freeze on their primary residence.

Oklahoma Motor Fuel Taxes

Gasoline: 20¢ per gallon.

Diesel: 20¢ per gallon.

Oklahoma Sin Taxes

Cigarettes: $2.03 per pack

Little cigars: $0.04-$1.20 for 10

Large cigars: $0.12 each

Smoking tobacco: 80% of manufacturer's price

Smokeless tobacco: 60% of manufacturer's price

Beer: $0.40 per gallon

Wine: $0.72 per gallon ($2.08 if sparkling)

Liquor: $5.56 per gallon

Oklahoma Estate and Inheritance Taxes

No estate or inheritance tax.

Rocky Mengle
Senior Tax Editor, Kiplinger.com

Rocky was a Senior Tax Editor for Kiplinger from October 2018 to January 2023. He has more than 20 years of experience covering federal and state tax developments. Before coming to Kiplinger, he worked for Wolters Kluwer Tax & Accounting and Kleinrock Publishing, where he provided breaking news and guidance for CPAs, tax attorneys, and other tax professionals. He has also been quoted as an expert by USA Today, Forbes, U.S. News & World Report, Reuters, Accounting Today, and other media outlets. Rocky has a law degree from the University of Connecticut and a B.A. in History from Salisbury University.