Overview
Oklahoma levies a graduated income tax with six brackets, ranging from 0.25% to 4.75%. While the state has six brackets, the top rate kicks in very quickly — at just $7,200 for single filers ($12,200 married). This means most Oklahoma workers effectively pay the flat 4.75% rate on the majority of their taxable income. The low bracket thresholds make Oklahoma's system function more like a flat tax with a small graduated discount on the first few thousand dollars.
Oklahoma has its own standard deduction of $6,350 for single filers, $12,700 for married filing jointly, and $9,350 for head of household. Personal exemptions are $1,000 per person. Oklahoma's calculations start from federal adjusted gross income with state-specific adjustments.
Oklahoma Tax Brackets 2026
| Income Range | Tax Rate | Tax on Bracket |
|---|---|---|
| $0 - $1,000 | 0.25% | $3 |
| $1,001 - $2,500 | 0.75% | $11 |
| $2,501 - $3,750 | 1.75% | $22 |
| $3,751 - $4,900 | 2.75% | $32 |
| $4,901 - $7,200 | 3.75% | $86 |
| Over $7,201 | 4.75% | -- |
Standard Deductions and Exemptions
| Filing Status | Standard Deduction | Personal Exemption |
|---|---|---|
| Single | $6,350 | $1,000 |
| Married Filing Jointly | $12,700 | $2,000 |
| Head of Household | $9,350 | $1,000 |
| Per Dependent | — | $1,000 |
Understanding Oklahoma Taxes
Oklahoma provides generous retirement income treatment. Social Security benefits are fully exempt from state tax. The state also allows an exclusion of up to $10,000 per person ($20,000 married) of other retirement income including pensions, 401(k)s, and IRAs for qualifying individuals. Military retirement pay is 100% exempt from Oklahoma income tax.
Oklahoma's sales tax rate is 4.50% at the state level with local additions bringing the average combined rate to approximately 8.98%, one of the higher combined rates nationally. Groceries are taxed at the full combined rate, which has been an ongoing concern for low-income households. Prescription drugs are exempt.
Property taxes in Oklahoma are low, with an average effective rate of approximately 0.87%. The state caps annual assessment increases at 3% for homestead properties, providing protection against rapid property value increases. Oklahoma offers a homestead exemption of $1,000 of assessed value for all homeowners and additional exemptions for seniors and disabled veterans.
Oklahoma's cost-of-living index is approximately 87, about 13% below the national average. Oklahoma City and Tulsa offer affordable urban living with growing job markets. The energy industry remains a significant economic driver, though the state has been diversifying into aerospace, healthcare, and technology.
Filing Tips for Oklahoma
Budget for the full sales tax on groceries — at nearly 9% combined, the tax on food adds up quickly for families
If you receive retirement income, claim the $10,000 per person exclusion on your Oklahoma return
Oklahoma's 3% cap on homestead assessment increases provides good protection in rising housing markets
State Revenue Authority
For the most current tax information, visit the official Oklahoma tax authority:
oklahoma.gov/taxRelated Calculators
Frequently Asked Questions
For educational purposes only -- not financial or tax advice. Tax rates shown are based on 2026 data and may not reflect recent changes. Consult a tax professional for your specific situation.