Oklahoma Tax Calculator 2026

Oklahoma Tax Overview

Oklahoma Income Tax Brackets 2026

Oklahoma has a graduated income tax system with six brackets ranging from 0.25% to 4.75%. The top rate of 4.75% applies to taxable income over $7,200 for single filers and $12,200 for married filing jointly. This relatively low threshold means most working Oklahomans quickly reach the top bracket, making the effective system similar to a flat tax for middle- and upper-income earners.

Oklahoma uses its own standard deduction, which is $6,350 for single filers and $12,700 for married filing jointly. The state also provides a personal exemption of $1,000 per person. Oklahoma conforms to many federal tax provisions but has its own set of adjustments, credits, and deductions. Notably, Oklahoma allows a deduction for federal income taxes paid, which is capped at $10,000 for single filers and $20,000 for married filing jointly. This unusual provision reduces the effective state tax burden.

Oklahoma Sales Tax — Among the Highest Combined Rates

Oklahoma's state sales tax rate is 4.5%, which appears moderate. However, Oklahoma's local sales tax structure is aggressive, with cities and counties adding substantial additional taxes. The result is that the average combined state and local sales tax rate in Oklahoma is approximately 8.97%, consistently ranking among the top five highest in the nation.

In 2024, Oklahoma eliminated the state-level sales tax on groceries, which was a significant relief for families. However, local sales taxes continue to apply to grocery purchases in most areas, meaning shoppers typically still pay 3-5% in local taxes on food. Oklahoma taxes most tangible personal property, and the high combined rates apply to clothing, electronics, household goods, and prepared food.

Notable Local Rates

• Oklahoma City — approximately 8.625% combined
• Tulsa — approximately 8.517% combined
• Norman — approximately 8.75% combined
• Broken Arrow — approximately 8.517% combined
• Lawton — approximately 9.5% combined

Oklahoma Property Tax

Oklahoma's effective property tax rate is approximately 0.85%, below the national average. Property taxes in Oklahoma are relatively low partly because the state constitution limits assessed values and tax rates. Residential property in Oklahoma is assessed at 11-13.5% of fair market value, and annual assessment increases are limited. These constitutional protections keep property taxes predictable and manageable for homeowners.

Oklahoma provides a homestead exemption of $1,000 of assessed value for all owner-occupied primary residences. Additional exemptions are available for qualifying seniors (with a more generous income-based exemption that can freeze or reduce the assessed value), disabled veterans (up to full exemption), and 100% disabled individuals. Oklahoma does not have any local income taxes, which means property taxes and sales taxes are the primary local revenue sources.

Oklahoma Energy Economy and Tax Revenue

Oklahoma is a major oil and natural gas producing state, ranking among the top five in the nation for both commodities. Energy production taxes play a significant role in the state's revenue picture. The Gross Production Tax on oil and gas is levied at rates that vary depending on the type of well and its production history, with the standard rate being 5% of gross value at the wellhead for most established wells. Newer wells and re-stimulated wells may qualify for reduced rates to encourage continued investment and production.

Revenue from energy production helps fund government services and has historically allowed Oklahoma to keep income tax rates relatively low. However, the cyclical nature of energy prices creates revenue volatility that has sometimes led to budget shortfalls during oil price downturns, as occurred in 2015-2016 and again during the 2020 pandemic. In response, the state has worked to diversify its economy, attracting aerospace, technology, and logistics companies to reduce its dependence on energy sector revenue. Oklahoma is also home to a growing wind energy industry, ranking among the top states for installed wind capacity, which provides both economic development and additional tax revenue through wind production taxes.

Oklahoma vs. Neighboring States

Oklahoma's tax profile offers a blend of moderate income and property taxes with high sales taxes:

• Texas — No income tax, 8.2% avg sales tax, 1.60% property tax. Texas has no income tax but significantly higher property taxes. For homeowners, the total burden may be similar.
• Arkansas — 2%-4.4% income tax, 9.48% avg sales tax, 0.63% property tax. Arkansas has similar income tax and even higher combined sales taxes, but lower property taxes.
• Kansas — 3.1%-5.7% income tax, 8.71% avg sales tax, 1.33% property tax. Kansas has higher income and property tax rates with comparable sales taxes.
• Missouri — 2%-4.8% income tax, 8.38% avg sales tax, 0.88% property tax. Missouri is very comparable to Oklahoma across all categories, with slightly lower sales taxes.
• Colorado — 4.4% flat income tax, 7.77% avg sales tax, 0.49% property tax. Colorado has lower sales and property taxes but a slightly lower flat income tax rate.

Use our state comparison calculator to compare Oklahoma to your current state.