Oklahoma State Tax Guide

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

pictue of Oklahoma state flag on pole against golden sky
(Image credit: Getty Images)

Oklahoma state tax: Overview

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 those rates recently dropped starting with the 2022 tax year.

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

Oklahoma falls in the middle when the median property tax rates for all 50 states are compared. Fuel taxes are relatively low as well.

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[Data for this state tax guide was gathered from a number of sources including the Census Bureau, the state’s government website, the Sales Tax Handbook, and the Tax Foundation. Property taxes are cited as a rate percentage rather than the assessed value.] 

Oklahoma income taxes

picture of the skyline in Oklahoma City, Oklahoma

(Image credit: Getty Images)

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

Oklahoma's state sales tax rate is 4.5%. 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

How much are Oklahoma property taxes?

little model house on a table

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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 gas taxes (motor fuel)

Gasoline: 20¢ per gallon.

Diesel: 20¢ per gallon.

Oklahoma taxes on alcohol and tobacco

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

There is no estate or inheritance tax in Oklahoma.

Rocky Mengle

Rocky Mengle was a Senior Tax Editor for Kiplinger from October 2018 to January 2023 with more than 20 years of experience covering federal and state tax developments. Before coming to Kiplinger, Rocky 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 holds a law degree from the University of Connecticut and a B.A. in History from Salisbury University.