Ahead of the Senate hearing on “Offshore Profit Shifting and the U.S. Tax Code,” I released a report reminding us that contrary to the perception created by these types of political spectacles, corporations pay a...
The facts on Oklahoma’s Tax Climate
5.25%Individual Income TaxTop rate
6%Corporate Income TaxFlat rate
$642Property Tax CollectionsPer Capita
Oklahoma's Individual Income Tax System
Oklahoma's personal income tax system consists of seven brackets and a top rate of 5.25%. That rate ranks 22nd lowest among states levying an individual income tax. Oklahoma's income tax collections per person were $595 in 2010 which ranked 17th lowest nationally.
50-State Table of Individual Income Tax Rates
50-State Table of State Individual Income Tax Collections
50-State Table of State and Local Individual Income Tax Collections Per Capita
Oklahoma's Corporate Income Tax System
Oklahoma's corporate income tax system consists of a flat rate of 6%. That rate ranks 17th lowest among states levying an corporate income tax. Oklahoma's corporate tax collections per person were $58 in 2010 which ranked 9th lowest nationally.
50-State Table of Corporate Income Tax Rates
50-State Table of State and Local Corporate Income Tax Collections Per Capita
50-State Table of State Corporate Income Tax Collections Per Capita
Oklahoma Sales and Excise Taxes
Oklahoma levies a 4.5% general sales or use tax on consumers, which is below the national median of 6%. The average local sales tax rate is an additional 4.17%. Oklahoma's state and local governments collect $963 per person in general sales taxes and $315 per person in excise taxes, for a combined figure of $1278, which ranks 19th lowest nationally. Oklahoma's gasoline tax stands at 17¢ (5th lowest nationally), while its cigarette tax stands at $1.03 (21st lowest nationally.)
50-State Table of State and Local General and Selective Sales Tax Collections Per Capita
Oklahoma Property Tax Collections Relatively Low
Oklahoma's state and local governments collected approximately $642 per person in property taxes, which ranks 4th lowest nationally.
State and local property tax collections per capita by state
Tax Freedom Day Arrives on April 6th in Oklahoma
Tax Freedom Day is the day when Americans finally have earned enough money to pay off their total tax bill for the year. In 2013, Oklahoma taxpayers worked until April 6th (9th earliest nationally) to pay their total tax bill. The Tax Freedom Days of neighboring states are: Kansas, April 9th (ranked 16th earliest nationally); Colorado, April 17th (ranked 16th latest nationally); New Mexico, April 3rd (ranked 5th earliest nationally); Texas, April 10th (ranked 20th earliest nationally); Arkansas, April 7th (ranked 12th earliest nationally); and Missouri, April 8th (ranked 14th earliest nationally).
Oklahoma's State and Local Tax Burden Below National Average
Oklahoma's 2010 tax burden of 8.73% ranks 15th lowest out of 50 states, and is below the national average of 9.9%. Oklahoma's taxpayers pay $3060 per capita in state and local taxes.
Oklahoma's State-Local Tax Burden, 1977-Present
Other States' State/Local Tax Burdens
Map of U.S. Showing all State's Burdens and Ranks
Historical Chart Comparing All States' State/Local Tax Burdens from 1977 to 2009
Oklahoma's 2013 Business Tax Climate Index Ranks 35
Oklahoma ranks 35th in the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes, individual income taxes, sales taxes, unemployment insurance taxes, and taxes on property, including residential and commercial property. The ranks of neighboring states are as follows: Kansas, 26th, Colorado, 18th, New Mexico, 38th, Texas, 9th, Arkansas, 33rd, and Missouri, 16th.
50-State Comparison of Business Tax Climates (data only)
2013 State Business Tax Climate Index (full study)
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