Oklahoma has progressive income tax rates from 0.25% to 4.75% — with partial retirement income exemptions.
Oklahoma Income Tax Rates for 2026
Single Filers
| Taxable Income | Tax Rate |
|---|---|
| $0 - $1,000 | 0.25% |
| $1,000 - $2,500 | 0.75% |
| $2,500 - $3,750 | 1.75% |
| $3,750 - $4,900 | 2.75% |
| $4,900 - $7,200 | 3.75% |
| Over $7,200 | 4.75% |
Married Filing Jointly
| Taxable Income | Tax Rate |
|---|---|
| $0 - $2,000 | 0.25% |
| $2,000 - $5,000 | 0.75% |
| $5,000 - $7,500 | 1.75% |
| $7,500 - $9,800 | 2.75% |
| $9,800 - $12,200 | 3.75% |
| Over $12,200 | 4.75% |
Note: Top rate kicks in at relatively low income levels.
Oklahoma Tax Calculator Examples
Example 1: $75,000 Single Filer
| Component | Calculation |
|---|---|
| Tax on first brackets | ~$200 |
| Tax on income over $7,200 (4.75%) | ($75,000 - $7,200) × 4.75% = $3,221 |
| Total Oklahoma tax | ~$3,421 |
| Effective rate | ~4.56% |
Example 2: $120,000 Married Filing Jointly
| Component | Calculation |
|---|---|
| Tax on first brackets | ~$350 |
| Tax on income over $12,200 (4.75%) | ($120,000 - $12,200) × 4.75% = $5,121 |
| Total Oklahoma tax | ~$5,471 |
| Effective rate | ~4.56% |
Oklahoma Standard Deduction (2026)
| Filing Status | Standard Deduction |
|---|---|
| Single | $6,350 |
| Married Filing Jointly | $12,700 |
| Married Filing Separately | $6,350 |
| Head of Household | $9,350 |
Oklahoma uses its own standard deduction amounts.
Oklahoma Retirement Income Exemption
Retirement Income Exclusion
| Filing Status | Exclusion Amount |
|---|---|
| Single | Up to $10,000 |
| Married Filing Jointly | Up to $20,000 |
Applies to:
- 401(k) distributions
- IRA distributions
- Pension income
- Other qualified retirement income
Social Security
Oklahoma exempts Social Security to the extent it’s not taxed federally. For most retirees, this means:
- Full exemption for lower incomes
- Partial exemption for higher incomes
What Income is Taxed in Oklahoma?
Taxed:
- Wages and salaries
- Self-employment income
- Interest and dividends
- Capital gains (taxed as ordinary income)
- Retirement income (above $10K/$20K exclusion)
- Rental income
Not taxed or exempt:
- First $10,000/$20,000 of retirement income
- Social Security (partially to fully exempt)
- Oklahoma municipal bond interest
- Certain military retirement (additional exclusion)
Oklahoma vs. Neighboring States
| State | Top Income Tax Rate |
|---|---|
| Texas | 0% (no income tax) |
| Missouri | 4.8% |
| Kansas | 5.7% |
| Arkansas | 4.4% |
| Colorado | 4.4% (flat) |
| New Mexico | 5.9% |
| Oklahoma | 4.75% |
Oklahoma is mid-range, with Texas offering no income tax.
Filing Oklahoma State Taxes
| Filing Requirement | Details |
|---|---|
| Form | 511 |
| Due date | April 15 (with federal) |
| E-file | Yes, through OkTap |
| Extension | Automatic with federal extension |
Oklahoma Sales Tax
- State rate: 4.5%
- Local rates: 1.5% - 7% additional
- Total range: 6% - 11.5%
- Oklahoma City typically 8.625%
Oklahoma has high combined sales tax rates due to local add-ons.
Oklahoma Property Tax
- Average effective rate: ~0.87% (below national average)
- Varies significantly by county
- Homestead exemption available
Tips to Reduce Oklahoma Taxes
- Claim retirement exclusion — $10K/$20K per year
- Max retirement contributions — Reduces taxable income
- Consider domicile — Texas border is nearby (no income tax)
- Itemize if beneficial — May exceed standard deduction
- Capital gains timing — Taxed as ordinary income
- HSA contributions — Triple tax advantage
Oklahoma Tax Authority
Oklahoma Tax Commission
- Website: tax.ok.gov
- Phone: 405-521-3160
- For refunds, returns, and questions
Bottom Line
Oklahoma has progressive income tax rates from 0.25% to 4.75%, with the top rate applying to relatively low income levels. The state offers a $10,000 retirement income exclusion ($20,000 married) and largely exempts Social Security. While income taxes are moderate, combined sales taxes can reach 11%+ — among the highest in the nation. Property taxes are below average. Texas (no income tax) borders Oklahoma, making location decisions tax-relevant.
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