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Oklahoma State Income Tax: Rates and Who Pays in 2023-2024

Did you know nine states in the United States have no income tax, while the rest have income taxes ranging from 0% to 13%? Understanding your state’s tax system is crucial, particularly because it helps in reducing your taxes. Let’s understand how Oklahoma State Income taxes work.
Oklahoma State Income Tax
Oklahoma State Income Tax: Rates and Who Pays in 2023-2024
Oklahoma State Income Tax, standard deductions, credits, and other benefits offered by the Oklahoma state are essential to understand before filing tax returns. Let's explore the details related to Oklahoma State Income taxes and how to use deductions to reduce taxes significantly.
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Did you know nine states in the United States have no income tax, while the rest have income taxes ranging from 0% to 13%? Oklahoma State Income Tax, standard deductions, credits, and other benefits offered by the Oklahoma state are essential to understand before filing tax returns. Understanding your state’s tax system is crucial, mainly since it enables you to reduce your taxes. 

In this article, you will learn more details about Oklahoma State Income taxes and how to use deductions to reduce taxes significantly. You can save yourself from fines and penalties with accurate calculations and timely tax filing. 

Use Beem’s online tax filing assistance to file your federal and state taxes without any hassle for all filing statuses.

Does Oklahoma have a State Income Tax?

Oklahoma charges taxes on your income between 0-5%. The state’s sales tax is 4.5%. The state also offers benefits, including tax deductions for disability, adoptions, and tax credits paid in other states. 

An Oklahoma resident is someone who lives and works in the state. Residents and non-residents of Oklahoma both are required to pay state income taxes. The average tax rate for Oklahoma residents is 11.66%, while marginal taxes are 22%. Taxes paid due to the immediate increase in income are known as marginal taxes. 

Oklahoma State Income Tax – How much will the income after tax in Oklahoma with Filing Status

Annual IncomeFiling Status –
Single
Filing Status –
Married Filing Jointly
Filing Status –
Head of Household
$12000$14,620$14,999$14,999
$15000$18,883$19,967$19,907
$20000$20,588$21,932$21,672
$22000$27,272$29,218$28,568
$30000$31,435$33,481$32,812
$35000$32,267$34,333$33,644
$36000$37,262$39,448$38,639
$42000$39,760$42,006$41,137
$45000$42,257$44,532$43,634
$48000$45,587$47,862$46,964
$52000$48,970$51,192$50,294
$54000$51,720$54,522$53,624
$60000$53,185$56,187$55,289
$62000$55,382$58,685$57,787
$65000$59,045$62,847$61,949
$70000$62,707$67,010$66,112
$75000$71,172$71,172$69,804
$80000$70,032$75,335$73,467
$85000$73,695$79,497$77,129
$90000$75,160$81,162$78,594
$92000$77,357$83,660$80,792
$95000$91,035$99,022$94,598
$114000$91,748$99,755$95,311
$115000$109,560$118,067$113,123
$140000$116,685$125,392$120,248
$150000$123,810$132,717$127,373
$160000$127,373$136,380$130,936
$165000$144,625$154,692$148,704
$190000$141,463$151,030$145,186
$185000$187,967$204,848$192,240
$260000$212,067$233,348$216,340
$300000$242,192$268,973$246,465
$350000$246,045$272,407$249,898
$120000$95,310$103,417$98,873
$135000$105,998$114,405$109,561
$170000$130,935$140,042$134,498
$180000$138,060$147,367$141,623
$250000$181,942$197,723$186,215
$28000$25,607$27,513$26,863
$32000$28,937$30,923$30,273
$40000$35,597$37,743$36,974
$44000$38,927$41,153$40,304
$53000$46,420$48,695$47,797
$56000$48,790$51,192$50,294
$58000$50,255$52,857$51,959

Oklahoma State Income Tax Rates And Tax Brackets

In Oklahoma, the tax brackets and tax rates vary for single and joint fillers.

Here is the list of tax brackets for single filers. 

Income RangeTax
$0- $10,000$0 – $310
$10,000-$20,000$313 – $810
$20,000-$30,000$813 – $1,310
$30,000-$40,000$1,313 – $1,810
$40,000-$50,000$1,813 – $2,310
$50,000-$60,000$2,313 – $2,810
$60,000-$70,000$2,813 – $3,310
$70,000-$80,000$3,313 – $3,810
$80,000-$90,000$3,813 – $4,310
$90,000-$100,000$4,313 – $4,810
$10,0000$4,812 + 0.05% of the excess of $100,000

Similarly, for joint filers, the list of tax brackets and tax rates is given below. 

Income RangeTax
$0- $10,000$0 – $166
$10,000-$20,000$168 – $644
$20,000-$30,000$646 – $1,144
$30,000-$40,000$1,146 – $1,644
$40,000-$50,000$1,646 – $2,144
$50,000-$60,000$2,146 – $2,644
$60,000-$70,000$2,646 – $3,144
$70,000-$80,000$3,146 – $3,644
$80,000-$90,000$3,646 – $4,144
$90,000-$100,000$4,146 – $4,644
$10,0000$4,645 + 0.05% of the excess of $100,000

What is Oklahoma’s Standard Deduction?

In Oklahoma, the standard deduction must be claimed if you claimed it on your federal return. Depending on your filing status, Oklahoma’s typical deduction amount varies.

Itemized Deductions

In Oklahoma, if you claim deductions on your federal return, you must also include them on your state return. Your total deductions on your state income tax return must be at most $17,000. There are only two exemptions to the $17,000 limit: medical expenditures and charitable donations.

Other Deductions

Oklahoma provides for some state-specific deductions, which include:

Qualified Adoption Expense

Taxpayers in Oklahoma may get a deduction of $20,000 each calendar year if they adopt a child. These expenses should be related to adoption directly. It might include adoption fees and court or attorney fees in the year they occur. 

Qualifying Disability Deduction

When a disabled taxpayer incurs expenses linked to modifying a motor vehicle, home, or worksite to compensate for their disability, those expenses can be deducted. However, details about disability and expenses must be provided. 

Contributions to Oklahoma 529 College Savings Plan 

Oklahoma taxpayers may also deduct contributions to qualified 529 accounts. Married couples filing jointly can deduct up to $20,000, while everyone else is entitled to deduct up to $10,000. 

Oklahoma State Income Tax Credits

Oklahoma State offers multiple deductions and credits to reduce tax liability on its residents. These credits are applied to residents with eligibility criteria, and those who come under this category can avail of many benefits and tax benefits. It includes

Child Tax Credit

You can claim a credit for Oklahoma taxes if you are eligible for a child care credit in a federal tax return and your AGI is less than $100,000. Depending on which is greater, the credit is equal to 20% of the IRC’s child care expense credit or 5% of the IRC’s child tax credit.

Earned Income Tax Credit

An earned income credit of 5% can be claimed on federal tax returns.

Tax Paid to Another State Tax Credit

You must include any income earned in another state on your Oklahoma State Income tax return. However, you are eligible for a tax credit based on your income. The Oklahoma State Income tax credit is different from those in other states. This credit has no refund, and it cannot be carried over.

How to Calculate Oklahoma State Income Tax?

Your Oklahoma State Income tax can be efficiently calculated using a tax calculator. The accurate tax estimation is made after entering detailed information about your income, background information, and deductions you are eligible for. 

The average sales tax in Oklahoma is 8.76%, including state and local taxes. Income tax rates vary by income. Similarly, there are different taxes based on where you live. Taxes can be incorporated into your overall financial plan with the assistance of a financial advisor.

Tax filing also includes various other taxes. Some of these include:

Property Tax Rates: Local governments determine property taxes.

Capital Gains Taxes: Taxes on capital gains are the same as those on ordinary income in Oklahoma. Also, certain capital gains can be deducted.

Inheritance and Estate Tax and Exemption: Oklahoma has no inheritance tax or estate tax.

Do I have to pay Oklahoma State Income Tax?

Your income and residency status impact whether or not you must file Oklahoma State income tax returns. A tax return must be filed if your income exceeds your standard deduction and personal exemptions.

Oklahoma requires residents and non-residents to file a tax return if they earned more than $1,000 from state revenue. Non-residents making over $1,000 in Oklahoma must file a tax return during their non-residency period.

Oklahoma State Income Tax
Oklahoma State Income Tax: Rates and Who Pays in 2023-2024 2

Am I a Resident for Oklahoma Income Tax Purposes?

There are three types of citizens in a state. Each type of citizen who earns via work or business in Oklahoma above $1,000 must file for return. The types of residents are classified below. 

Resident status rules

Individuals who reside in a state for the entire year are residents.

Part-year resident status rules

People who spent less than 12 months of the tax year in Oklahoma are considered part-year residents.

Non-resident status rules

A non-resident is a person who did not reside in the state during the tax year.

Also Read: Ohio State Income Tax

Where is My Oklahoma State Income Tax Refund?

To find your refund status on your Oklahoma income tax, you must provide

  • The last seven digits of your Social Security number
  • Or your Individual Taxpayer Identification Number (ITIN), 
  • Your zip code 
  • The refund amount. 

It takes about four business days to process an e-filed request after acceptance. The refund submitted in paper reports can take up to three weeks to process. Your account will receive the refund five business days after the refund is processed. 

Oklahoma state refunds can be delayed for a variety of reasons, including:

  • Your return contains math errors or other adjustments.
  • Your return had more than one form type.
  • Incomplete or missing information was on your return.

Why Did My Oklahoma State Income Tax Increase?

Oklahoma taxes in other categories are $244 higher than the national average. It is due to the severance tax collection on oil and gas production. It ranks the state at 9th rank when calculating severance tax per person. Also, the Oklahoma State Income tax is progressive, so if your income increases, so is your tax.

Other factors leading to changes in your tax amount are deductions and credits. The state offers these benefits to reduce tax liability on the residents. If your marital status or dependents change or any other credit you were eligible for earlier is not applicable now, it can significantly increase your tax. 

Oklahoma Sales Tax

Oklahoma sales tax is 4.5%. With combined city and county rates of up to 8.99%, Oklahoma has one of the highest local sales taxes in the nation. 

5 Things to Know About Oklahoma Income Tax

Here are five things one must know about Oklahoma State Income Tax:

  • A pack of cigarettes in Oklahoma costs $2.03, making it the country’s 18th-highest state tax rate.
  • Fuel taxes in Oklahoma are 16 cents per gallon for diesel fuel and 19 cents for regular gasoline.
  • Property taxes cost Oklahoma homeowners, on average, $1,424. It ranks Oklahoma among the ten states with the lowest payments.
  • For one weekend, clothing and shoes purchased under $100 are exempt from sales tax in Oklahoma. As part of back-to-school shopping, the sales tax holiday is usually held the first weekend in August.
  • It is possible to file a marriage filing a separate return if only one of the spouses lives in Oklahoma and the other does not. In the case of married filing jointly, all income is taxed as if both taxpayers were residents. Check out Beem to file your federal and state taxes irrespective of your filing status in any US state and all types of tax forms.

Frequently Asked Questions

Q. Is Oklahoma a high-tax state?

No, the tax in Oklahoma is lower. It is the 41st lowest state in the case of taxes among the 50 states in the US. 

Q. Is Oklahoma a tax-friendly state?

Yes, Oklahoma is a tax-friendly state. It doesn’t tax social security and a low average income tax rate. 

Q. Is Oklahoma an excellent place to live for taxes?

Yes, for tax purposes, Oklahoma is definitely among the inexpensive states. 

Q. How much of my paycheck goes to taxes in Oklahoma?

Most residents in Oklahoma pay about 11.67% of their income in taxes and 22% as marginal taxes. The state has a progressive tax structure, so the tax percentage increases with increasing income. 

Q. Does Oklahoma tax income earned in another state?

You must file income tax and mention if you have paid income taxes to any other state. You might be eligible for credit if you are a resident of Oklahoma. 

Q. Does the state of Oklahoma tax social security income?

No, Oklahoma does not tax social security income. A Schedule 511-A can be filed to deduct Social Security benefits. Federal income taxes may still apply to some Social Security benefits.

Q. Can Oklahoma state income tax go up?

Taxes are dependent on market situations. With the increase in inflation and global crisis, there might be a slight increase in taxes in Oklahoma. 

Q. Do seniors have to pay state income tax in Oklahoma?

Yes, seniors have to pay income tax in Oklahoma. But they receive an exemption of $10,000 if they are above 65. Oklahoma is one of the best states for retired military personnel. 

Q. Does Oklahoma have a state income tax for the military?

No, Oklahoma state does not collect tax from active military pay or on reserve.   

Q. What are Oklahoma’s state income taxes for LLCs?

The corporate tax rate in Oklahoma is 4%. When combined with local and state taxes, it can go up to 8.98%. 

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This page is purely informational. Beem does not provide financial, legal or accounting advice. This article has been prepared for informational purposes only. It is not intended to provide financial, legal or accounting advice and should not be relied on for the same. Please consult your own financial, legal and accounting advisors before engaging in any transactions.

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