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Official Tax Guide

Oklahoma Taxes 2025: Income, Sales, and Property Tax Guide

Complete guide to Oklahoma state taxes. Income tax (0.25% - 4.75%), sales tax, and what you need to know before moving.

Updated January 15, 2026
5 min read

State Tax Guide 2025: Oklahoma

Welcome to Oklahoma! As you settle into the Sooner State, understanding the tax landscape is crucial for your financial planning. This guide provides an overview of Oklahoma’s tax system for 2025, focusing on the key areas that impact individuals and families.

Income Tax

Oklahoma utilizes a progressive income tax system. This means that as your taxable income increases, your tax rate also increases.

  • Tax Structure: Progressive
  • Tax Brackets (2025): The rates range from 0.25% to 4.75% across multiple brackets.
    • Note: While specific bracket thresholds are adjusted annually for inflation, the marginal rates remain consistent. Lower-income earners benefit from the lowest bracket, while higher-income residents are subject to the top rate of 4.75%.
  • Filing: Residents file state income tax returns annually, typically mirroring federal adjusted gross income with some state-specific adjustments.

Sales Tax

Oklahoma’s sales tax is a combination of state and local rates, making the total rate vary depending on your specific location.

  • State Rate: The base state sales tax rate is 4.5%.
  • Local Rates: Cities, counties, and special districts may levy additional sales taxes.
    • Total Rate: When combined with local taxes, the total sales tax rate typically ranges from 4.5% to 11% depending on the municipality. For example, Oklahoma City and Tulsa have rates above the state minimum.
  • Groceries: Oklahoma taxes groceries at a reduced state rate (currently 1%), though local taxes may still apply to the full amount.

Property Tax

Oklahoma property taxes are generally lower than the national average, which is a significant draw for homeowners.

  • Overview: Property taxes are administered by county assessors. Taxes are based on the assessed value of real estate.
  • Rates: While rates vary by county and school district, the effective tax rate is relatively low compared to other states. Homeowners in Oklahoma often pay significantly less in property taxes than those in neighboring Texas or Kansas.
  • Exemptions: Oklahoma offers various exemptions, including a "Homeowner's Exemption" for primary residences, which can lower the taxable value of the property.

Other Taxes

Beyond income, sales, and property taxes, Oklahoma levies several other taxes that residents should be aware of:

  • Motor Fuel Tax: Oklahoma taxes gasoline and diesel fuel. As of 2025, the state tax on gasoline is approximately $0.20 per gallon and $0.13 per gallon for diesel (subject to legislative changes).
  • "Sin Taxes":
    • Tobacco: Cigarettes are taxed at $1.03 per pack of 20, with higher rates for other tobacco products.
    • Alcohol: Beer and wine are taxed at specific rates based on volume and alcohol content.
  • Inheritance/Estate Tax: Oklahoma does not levy a state inheritance or estate tax. However, federal estate tax laws still apply to larger estates.

Retiree Taxes

Oklahoma is relatively friendly to retirees regarding state income tax.

  • Social Security: Social Security benefits are exempt from Oklahoma state income tax for most taxpayers (specifically those with federal adjusted gross income below certain thresholds).
  • Retirement Income: A portion of pension and retirement plan distributions (including 401(k)s and IRAs) may be excluded from state taxation, up to $10,000 per person, depending on income levels.
  • Property Tax Relief: Seniors (age 65+) may be eligible for property tax freezes or exemptions on their primary residence, provided income requirements are met.

Comparison to Neighboring States

How does Oklahoma stack up against its neighbors?

  • Texas: Oklahoma generally has lower property taxes than Texas (which has no state income tax but high property taxes). Oklahoma does have a state income tax, which Texas lacks.
  • Kansas: Both states have progressive income tax systems, but Kansas rates are generally higher on the top end. Property taxes in Oklahoma are often lower than in Kansas.
  • Arkansas: Arkansas has a progressive income tax with a slightly different bracket structure. Sales tax rates are comparable, though Arkansas generally has a slightly higher average property tax rate.
  • Missouri: Missouri has a progressive income tax system similar to Oklahoma's. Both states offer tax relief for retirees, though the specific exclusions differ.

Disclaimer

Tax laws are subject to change and can vary based on individual circumstances. The information provided in this guide is for general informational purposes only and is based on 2025 data. Please consult a qualified CPA or tax professional for personalized advice regarding your specific financial situation.