Tax Laws in Oklahoma.

Graduated rates from 0.25% to 4.75% (top rate). 2024 reform (HB 2041) initiated phased reduction with $1.50 per quarter revenue trigger toward eventual flat rate.

4.5% state sales tax. Local sales taxes produce combined rates commonly 8-10% (Oklahoma City 8.625%; Tulsa 8.517%). Oklahoma is one of the few states that taxes groceries at the full state rate (though local governments may exempt).

4% flat corporate income tax on Oklahoma taxable income. Three-factor apportionment.

7% gross production tax on oil and gas (reduced 2% during first 36 months of production — "horizontal drilling incentive"). Major state revenue source.

Locally assessed. Oklahoma has among the lowest effective property tax rates in the U.S. Homestead exemption, Senior Valuation Freeze, and 100% Disabled Veterans exemption available.

Oklahoma has no estate tax and no inheritance tax.