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.
2 min read
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?
9 min read
Retail sales taxes are an essential part of most states’ revenue toolkits, responsible for nearly a quarter of combined state and local tax collections.
18 min read
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.
9 min read
However states choose to respond to other tax provisions of the One Big Beautiful Bill Act, they should conform to the pro-growth provisions, which represent a marked improvement in the corporate tax code.
12 min read
However well-intended they may be, sales tax holidays remain the same as they always have been—ineffective and inefficient.
16 min read
Oklahoma can continue to enhance its competitiveness by pursuing a variety of reforms to the corporate and individual income tax, but it should avoid policies that would negatively impact the economy, like enacting a wholesale elimination of the property tax.
6 min read
The One Big Beautiful Bill’s changes to the taxation of international income have surprising implications for state codes, yielding tax increases and a revised tax base that, through quirks of state incorporation, bears very little resemblance to the federal base and almost nothing of its purpose.
10 min read
The five states with the highest average combined state and local sales tax rates are Louisiana (10.11 percent), Tennessee (9.61 percent), Arkansas (9.48 percent), Washington (9.47 percent), and Alabama (9.44 percent).
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Summer has arrived, and states are beginning to implement policy changes that were enacted during this year’s legislative session (or that have delayed effective dates or are being phased in over time).
28 min read
As the US House hashes out its “One, Big, Beautiful Bill,” statehouse lawmakers are watching closely, given the impact of both its tax and spending provisions on state budgets.
12 min read
As home values have spiked, Florida and other states are weighing elimination of property taxes.
Does your state have a small business exemption for machinery and equipment?
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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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