Oklahoma has a graduated state individual income tax with three brackets and rates ranging from 0.50 percent to 4.50 percent. Oklahoma has a flat 4.00 percent corporate income tax rate, a 4.50 percent state sales tax rate, and an average combined state and local sales tax rate of 8.99 percent. Oklahoma has a 0.79 percent effective property tax rate on owner-occupied housing value. Oklahoma does not have an estate tax or inheritance tax. Oklahoma’s gas tax is 20 cents per gallon, and its cigarette excise tax is $2.03 per pack of 20 cigarettes.
Oklahoma raises tax revenue primarily through general sales taxes (31.3 percent of total state and local tax revenue), other taxes (24.2 percent), and individual income taxes (20.4 percent). Oklahoma collects $5,312 in state and local tax collections per capita, carries $5,340 in state and local debt per capita, and has a 90 percent funded ratio of public pension plans. Oklahoma’s tax system ranks 19th overall on the 2026 State Tax Competitiveness Index.
Each state’s tax code is a multifaceted system with many moving parts, and Oklahoma is no exception. Use the tabs below to compare Oklahoma taxes with other states and to see how Oklahoma raises tax revenue. You can also browse our tax maps, which are compiled from our annual publication, Facts & Figures 2026: How Does Your State Compare?
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The State Tax Competitiveness Index enables policymakers, taxpayers, and business leaders to gauge how their states’ tax systems compare. While there are many ways to show how much state governments collect in taxes, the Index evaluates how well states structure their tax systems and provides a road map for improvement.
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Facts & Figures serves as a one-stop state tax data resource that compares all 50 states on over 40 measures of tax rates, collections, burdens, and more.
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Individual income taxes are a major source of state government revenue, accounting for more than a third of state tax collections. How do income taxes compare in your state?
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Retail sales taxes are an essential part of most states’ revenue toolkits, responsible for nearly a quarter of combined state and local tax collections.
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Forty-four states levy a corporate income tax, with top rates ranging from a 2 percent flat rate in North Carolina to an 11.5 percent top marginal rate in New Jersey. Four states—Georgia, Nebraska, North Carolina, and Pennsylvania—reduced their corporate income tax rates effective January 1, 2026.
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Property taxes are the primary tool for financing local governments. While no taxpayers in high-tax jurisdictions will be celebrating their yearly payments, property taxes are largely rooted in the benefit principle of taxation: the people paying the property tax bills are most often the ones benefiting from the services.
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In the United States, taxes are the single most expensive ingredient in beer. The tax burden accounts for more of the final price of beer than labor and materials combined—the many different layers of applicable taxes combining to total as much as 40.8 percent of the retail price.
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Policies that increase the tax burden on high earners makes states less competitive, increase revenue volatility, discourage investment, and risk accelerating outmigration of talent and capital. Many top-earners are already leaving high-tax states for Florida, North Carolina, and other low-tax jurisdictions.
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The significant disparity in tax rates across states underscores the complex tax and regulatory environment governing distilled spirits.
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Tax collections vary widely by state, making per capita collections figures—a measure of collections per person—especially useful, as they allow comparisons across differences in tax rates and bases, economic capacities, and policy decisions that impact the size and scope of government.
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Rental cars are some of the most heavily taxed transactions in the US. Rather than levying additional taxes on rental cars by trying to export the tax burden to nonresidents, municipalities should enact principled, neutral transportation tax policy that is unlikely to discourage visitors, tourists, and other economic activity.
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Two bills in Oklahoma and Louisiana shift towards a weight-based system for taxing moist snuff tobacco (MST), a policy that ensures neutral taxation across products and less revenue volatility.
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From coast to coast, lawmakers are embracing wealth and millionaires’ taxes. Many of these proposals will face their ultimate test at the ballot box this November, and we should be rooting for these measures to fail.
Millions of Americans, along with significant amounts of income and economic activity, are moving from high-tax states to those with more competitive tax systems and lower overall costs of living.
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Nearly half of US states regulate and tax recreational markets, and only 10 states still lack a comprehensive medical marijuana program.
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Facts & Figures serves as a one-stop state tax data resource that compares all 50 states on over 40 measures of tax rates, collections, burdens, and more.
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