Oklahoma Tax Guide 2025

Oklahoma state tax: Overview

Oklahoma can be a friendly place for homeowners, with median property tax bills well below the national average. Income tax rates top out at 4.75 percent, so higher earners may keep more of their income compared to many other states.

Not every tax in Oklahoma is as easy on the wallet, though. Some lower earners may actually pay more in income tax than they would elsewhere, and the state still taxes groceries and other essentials. On the bright side, gas taxes are low, and there are no estate or inheritance taxes to worry about.

[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 tax

Oklahoma has a graduated state individual income tax rate ranging from 0.25 percent to 4.75 percent.

Oklahoma retirement taxes

Oklahoma tax on retirement income: Social Security benefits, Military pensions and Railroad Retirement benefits are not taxed by the state.

• Tax on Taxable Income: Low of 0.25% (on up to $1,000) and a high of 4.75% (on more than $7,200)
• The highest income tax bracket is lower in Oklahoma than in many other states, but most Oklahoma taxpayers fall into the state’s highest bracket.
  • Social Security: Not taxable
  • Pensions: Partially Taxable
  • 401(k) and IRA Distributions: Partially Taxable

Oklahoma sales tax

Oklahoma's state sales tax rate is 4.5%. Localities can add as much as 4.45%, and the average combined rate is 9%, according to the Tax Foundation.

• Groceries: Taxable
• Prescription drugs: Taxable
• Clothing: Taxable

How much are Oklahoma property taxes?

Oklahoma homeowners pay some of the lowest property tax bills in the country, with a median tax bill of $942 and an average effective property tax rate of 0.77%.

Oklahoma Property Tax Breaks for Retirees

Residents 65 or older with a previous year household income at or below $89,500 may qualify for a property tax valuation freeze.

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 tax

Source: Sales Tax Handbook

Oklahoma tax on alcohol and tobacco

Source: Sales Tax Handbook

Source: Sales Tax Handbook

Oklahoma estate and inheritance taxes

There is no estate or inheritance tax in Oklahoma.

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