The facts on Oklahoma’s Tax Climate

  • 5.3%
    Individual Income Tax
    Seven brackets
  • 6%
    Corporate Income Tax
    Flat Rate
  • 4.5%
    Sales Tax
  • $597
    Property Tax Collections
    Per Capita

Oklahoma‘s Individual Income Tax System
Oklahoma’s personal income tax system consists of seven brackets and a top rate of 5.3%, kicking in at an income level of $8,700. Oklahoma’s top rate of 5.3% is 30th highest among states levying personal income taxes. Oklahoma’s 2010 state-level individual income tax collections were $595 per person, which ranked 33rd highest nationally.

50-State Table of Individual Income Tax Rates

50-State Table of State Individual Income Tax Collections

50-State Table of State and Local Individual Income Tax Collections Per Capita

Tax Freedom Day Arrives on April 8 in Oklahoma

Tax Freedom Day is the day when Americans finally have earned enough money to pay off their total tax bill for the year. In 2012, Oklahoma taxpayers work until April 8 (ranked 39th nationally) to pay their total tax bill. The Tax Freedom Days of neighboring states are: Texas, April 11 (ranked 31st nationally); New Mexico, April 12 (ranked 28th nationally); Colorado, April 15 (ranked 21st nationally); Kansas, April 15 (ranked 21st nationally); Missouri, April 7 (ranked 42nd nationally); and Arkansas, April 11 (ranked 31st nationally).

Oklahoma’s State and Local Tax Burden Below National Average

Oklahoma’s state and local tax burden is currently estimated at 8.7% of income (37th nationally), below the national average of 9.8%. Compared to the 1977 data, Oklahoma had a tax burden of 8.5% (43thnationally), increasing 0.2% overall. Currently Oklahoma taxpayers pay $3,259 per capita in state and local taxes.
Oklahoma’s State-Local Tax Burden, 1977-Present
Other States’ State/Local Tax Burdens
Map of U.S. Showing all State’s Burdens and Ranks
Historical Chart Comparing All States’ State/Local Tax Burdens from 1977 to 2009

Oklahoma’s 2013 Business Tax Climate Index Ranks 35th

Oklahoma ranks 35th in the Tax Foundation’s State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes; individual income taxes; sales taxes; unemployment insurance taxes; and taxes on property, including residential and commercial property. The ranks of neighboring states are as follows: Kansas (26th), Colorado (18th), New Mexico (38th), Texas (9th), Arkansas (33rd), and Missouri (16th).

50-State Comparison of Business Tax Climates (data only)
2013 State Business Tax Climate Index (full study)