Oklahoma state tax: Overview
Oklahoma state tax is a plus for many homeowners since median property tax bills are far below the national average. And with income tax rates that max out at 4.75%, higher earners might won’t pay as much as they would in many other states.
However, not all taxes in Oklahoma are as affordable. For example, lower earners in Oklahoma may pay a higher income tax rate than they would in other states. Also, the state still taxes groceries and other essentials. But at least there are no death taxes in Oklahoma.
[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.]
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Oklahoma income taxes
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Oklahoma Income Tax Range: Single filers
| Up tp $1,000 | 0.25% |
| $1,000 to $2,500 | 0.75% |
| $2,500 to $3,750 | 1.75% |
| $3,750 to $4,900 | 2.75% |
| $4,900 to $7,200 | 3.75% |
| More than $7,200 | 4.75% |
Oklahoma Income Tax Range: Joint filers
| Up to $2,000 | 0.25% |
| $2,000 to $5,000 | 0.75% |
| $5,000 to $7,500 | 1.75% |
| $7,500 to $9,800 | 2.75% |
| $9,800 to $12,200 | 3.75% |
| More than $12,200 | 4.75% |
Oklahoma tax on retirement income: Social Security benefits, Military pensions and Railroad Retirement benefits are not taxed by the state.
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 8.986%, according to the Tax Foundation.
- Groceries are taxable.
- Prescription drugs are tax-exempt.
- Diapers are taxable.
- Women’s menstrual products are taxable.
How much are Oklahoma property taxes?
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Oklahoma homeowners pay some of the lowest property tax bills in the country, with a median tax bill of $1,351 and an average effective property tax rate of 0.9%.
Oklahoma Property Tax Breaks for Retirees
Residents 65 or older with a previous year household income at or below $85,300 may qualify for a property tax valuation freeze. This income threshold is for 2023 and may change in future years.
An additional homestead exemption of up to $1,000 is available to some residents. However, income limits and other qualifying criteria apply. The income limit for the additional homestead exemption is much lower than for the property tax freeze.
Oklahoma gas taxes (motor fuel)
Gasoline: $0.20 per gallon.
Diesel: $0.20 per gallon.
Oklahoma taxes on alcohol and tobacco
| Cigarettes | $2.03 per pack |
| Cigars | $1.20 per 10 cigars |
| Other tobacco products | 60% to 80% of manufacturer’s price |
| Beer | $0.40 per gallon |
| Wine | $0.72 per gallon |
| Liquor | $5.56 per gallon |
Oklahoma estate and inheritance taxes
There is no estate or inheritance tax in Oklahoma.