-
Overall Rank
15
Up 4 places since 2026 -
5
No change since 2026 -
15
Up 13 places since 2026 -
34
No change since 2026 -
9
Up 1 place since 2026 -
Unemployment Insurance Tax Rank
3
Up 2 places since 2026
Oklahoma ranks 15th overall on the 2027 State Tax Competitiveness Index.
Score 5.48 / 10
Notable Changes Oklahoma is singled out in the study for this year's changes.
In the 2027 Index
As a result of tax bills passed in 2025, Oklahoma moved from six individual income tax brackets to three, and from a top rate of 4.75 to 4.5 percent, improving the state’s individual income tax rank by 13 places. The state also conformed to the improved expensing treatment enacted by the OBBBA, while resisting the option to exempt tips and overtime pay from the income tax. All these improvements brought Oklahoma’s rank from 19th to 15th overall.
Snapshot date: The 2027 Index measures each state's tax law as of July 1, 2026. Changes enacted after that date are not reflected in these ranks.
About Oklahoma's Tax Code
In recent years, Oklahoma lawmakers have adopted several structural reforms, including eliminating the income tax’s marriage penalty and repealing a capital stock tax. In 2025, lawmakers again reformed the individual income tax by reducing the top marginal rate to 4.5 percent, consolidating six brackets into three, and providing fiscal safeguards for future triggered rate reductions. These changes take effect in 2026. However, lawmakers have yet to index the code for inflation. This leaves taxpayers vulnerable to bracket creep, which occurs when inflation pushes a taxpayer from a lower bracket to a higher one when nominal income rises, but due to inflation, real income does not, or may even decline.
Oklahoma’s property taxes are relatively low, and the state has benefited from the repeal of the capital stock tax. Capital stock taxes are imposed on a business’s net worth (or accumulated wealth) and tend to penalize investment. Moreover, businesses were required to pay the capital stock tax regardless of profitability. However, the state continues to tax business inventory, which is also levied regardless of profitability. Such taxes are nonneutral and disproportionately affect those businesses with larger inventories, causing taxpayers to make inefficient timing and location decisions with their inventory.
Oklahoma was the first state to adopt permanent bonus depreciation for qualifying investments in machinery and equipment. This boosted the state’s competitiveness, particularly because, at the time, the federal One Big Beautiful Bill Act (OBBBA) had not yet been introduced. This pro-growth reform makes the state attractive to capital-intensive industries.
Oklahoma has a single corporate tax rate at 4 percent; however, the state does not conform to federal depletion rules for oil and gas—rules similar to depreciation that apply to natural resources—but it does have its own state-specific deduction. The corporate code also features some nonneutral incentive credits for jobs and investment. The state’s throwback rule is inefficient and taxes “nowhere income” in the state from which sales are made because the seller lacks sufficient nexus to be taxed in the destination state, leading to taxation in the wrong state at the wrong rate.
Component Scores
#15 overall · 5.48 / 10Each component is scored from 0 to 10, where 10 is best. Select a component for its detail page.
| Component | Rank | Score | |
|---|---|---|---|
| Corporate Taxes | #5 | 5.95 / 10 | |
| Individual Income Taxes | #15 | 5.56 / 10 | |
| Sales Taxes | #34 | 4.31 / 10 | |
| Property Taxes | #9 | 5.90 / 10 | |
| Unemployment Insurance Taxes | #3 | 6.07 / 10 |
Ranking Changes, 2020–2027
#15 in 2027 · up 8 places from 2020Oklahoma ranked 23rd in 2020 and ranks 15th in 2027, an improvement of 8 places. The axis is zoomed to the state's range. Ranks for 2020 through 2026 are backcast under the current methodology.
Show the Table
| Year | Overall | Corporate | Individual Income | Sales | Property | Unemployment Insurance |
|---|---|---|---|---|---|---|
| 2020 | 23 (5.17) | 10 (5.55) | 30 (5.06) | 40 (4.06) | 15 (5.39) | 1 (6.64) |
| 2021 | 19 (5.22) | 11 (5.57) | 29 (5.07) | 37 (4.26) | 15 (5.38) | 1 (6.64) |
| 2022 | 26 (5.14) | 12 (5.59) | 28 (5.11) | 36 (4.31) | 16 (5.34) | 9 (5.77) |
| 2023 | 21 (5.20) | 5 (5.91) | 30 (5.12) | 36 (4.25) | 21 (5.28) | 5 (5.88) |
| 2024 | 19 (5.32) | 6 (5.89) | 21 (5.34) | 37 (4.27) | 9 (5.75) | 6 (5.72) |
| 2025 | 18 (5.35) | 6 (5.87) | 26 (5.30) | 35 (4.26) | 7 (6.08) | 6 (5.74) |
| 2026 | 19 (5.33) | 5 (5.90) | 28 (5.26) | 34 (4.29) | 10 (5.80) | 5 (5.79) |
| 2027 | 15 (5.48) | 5 (5.95) | 15 (5.56) | 34 (4.31) | 9 (5.90) | 3 (6.07) |
Oklahoma Compared across the States
#15 overallEach row places the states on a 0 to 10 score scale for one measure. Oklahoma is the large outlined dot, and the dashed line is the 50-state median, so a dot to its right scores better than the typical state. Hover over or tab to any dot for detail, and select it to open that state's profile.
Overall
#15 5.48
Corporate Taxes
#5 5.95
Individual Income Taxes
#15 5.56
Sales Taxes
#34 4.31
Property Taxes
#9 5.90
Unemployment Insurance Taxes
#3 6.07
- Oklahoma
- Other states, by rank (1st to 50th)
- 50-state median
Oklahoma and Its Neighbors
#15 overallOklahoma borders 6 states and ranks 15th overall; 2 of them rank higher and 4 rank lower.
What Each Component Includes
The five components of the Index, what each one covers, and where Oklahoma lands. Open any component for the full breakdown.
-
Corporate Taxes
Rank #5Includes corporate income taxes and gross receipts taxes. Measures the impact of each state’s principal tax on business activities.
Full Breakdown for Oklahoma → -
Individual Income Taxes
Rank #15Covers the tax individuals pay on income, and with it a significant number of businesses — sole proprietorships, partnerships, and S corporations — that report their income through the individual income tax code.
Full Breakdown for Oklahoma → -
Sales Taxes
Rank #34Covers the general sales tax levied on the purchase price of goods and services, plus excise taxes on gasoline, diesel, tobacco, vapor products, beer, and spirits, and taxes on digital advertising.
Full Breakdown for Oklahoma → -
Property Taxes
Rank #9Includes taxes on real and personal property, net worth, and the transfer of assets — among them capital stock, estate, inheritance, and real estate transfer taxes.
Full Breakdown for Oklahoma → -
Unemployment Insurance Taxes
Rank #3Covers the taxes employers pay into the state unemployment insurance program to finance benefits for workers recently unemployed.
Full Breakdown for Oklahoma →
Tax Data Explorer
Every policy variable behind Oklahoma's 2027 scores, grouped by the report's tables, as of July 1, 2026. Its bordering states are shown alongside to start. Search the variables and values, or add up to 4 states to compare side by side.
156 data points · Shaded values differ from Oklahoma
Corporate Taxes: Corporate Income Tax Rates
| Variable | Oklahoma | Arkansas | Colorado | Kansas | Missouri | New Mexico | Texas |
|---|---|---|---|---|---|---|---|
| Bracket 1 | 4.0% > $0 | 1.0% > $0 (differs) | 4.4% > $0 (differs) | 3.5% > $0 (differs) | 4.0% > $0 | 5.9% > $0 (differs) | None (differs) |
| Bracket 2 | n.a. | 2.0% > $3,000 (differs) | n.a. | 6.5% > $50,000 (differs) | n.a. | n.a. | n.a. |
| Bracket 3 | n.a. | 3.0% > $6,000 (differs) | n.a. | n.a. | n.a. | n.a. | n.a. |
| Bracket 4 | n.a. | 4.3% > $11,000 (differs) | n.a. | n.a. | n.a. | n.a. | n.a. |
| Gross Receipts Tax | No | No | No | No | No | No | Yes (differs) |
| Gross Receipts Tax Minimum Rate | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. | 0.331% (differs) |
| Gross Receipts Tax Maximum Rate | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. | 0.75% (differs) |
| Gross Receipts Tax Rate Used in the Index | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. | 0.75% (differs) |
Corporate Taxes: Tax Credits and Gross Receipts Deductions
| Variable | Oklahoma | Arkansas | Colorado | Kansas | Missouri | New Mexico | Texas |
|---|---|---|---|---|---|---|---|
| Job Credits | Yes | Yes | Yes | Yes | Yes | Yes | No (differs) |
| Research and Development Credits | No | Yes (differs) | Yes (differs) | Yes (differs) | Yes (differs) | Yes (differs) | Yes (differs) |
| Investment Credits | Yes | Yes | Yes | Yes | Yes | Yes | No (differs) |
| Compensation Expenses Deductible | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. | Partial (differs) |
| Cost of Goods Sold Deductible | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. | Partial (differs) |
Corporate Taxes: Net Operating Losses
| Variable | Oklahoma | Arkansas | Colorado | Kansas | Missouri | New Mexico | Texas |
|---|---|---|---|---|---|---|---|
| Conforms to Federal NOL Treatment | Yes | No (differs) | No (differs) | No (differs) | No (differs) | Yes | n.a. (differs) |
| Carryback (Years) | Conforms to federal treatment | 0 (differs) | 0 (differs) | 0 (differs) | 2 (differs) | Conforms to federal treatment | n.a. (differs) |
| Carryback Cap | Conforms to federal treatment | $0 (differs) | $0 (differs) | $0 (differs) | Unlimited (differs) | Conforms to federal treatment | n.a. (differs) |
| Carryforward (Years) | Conforms to federal treatment | 10 (differs) | 20 (differs) | Unlimited (differs) | 20 (differs) | Conforms to federal treatment | n.a. (differs) |
| Carryforward Cap | Conforms to federal treatment | Unlimited (differs) | 80% (differs) | Unlimited (differs) | Unlimited (differs) | Conforms to federal treatment | n.a. (differs) |
Corporate Taxes: Treatment of Capital Investment
| Variable | Oklahoma | Arkansas | Colorado | Kansas | Missouri | New Mexico | Texas |
|---|---|---|---|---|---|---|---|
| Section 168(k) Expensing | 100% | 0% (differs) | 100% | 100% | 100% | 100% | 100% |
| Conforms to Section 163(j) Limitation | Yes | No (differs) | Yes | No (differs) | No (differs) | Yes | No (differs) |
| GILTI Inclusion | Decouples | Decouples | 50% Inclusion (differs) | Decouples | Decouples | Decouples | n.a. (differs) |
| Section 174 Expensing | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Section 168(n) Expensing | Yes | No (differs) | Yes | Yes | Yes | Yes | Yes |
Corporate Taxes: Other Corporate Base Variables
| Variable | Oklahoma | Arkansas | Colorado | Kansas | Missouri | New Mexico | Texas |
|---|---|---|---|---|---|---|---|
| Federal Income Used as State Tax Base | Yes | No (differs) | Yes | Yes | Yes | Yes | Partial (differs) |
| Conformity Status | Rolling | Static (not current) (differs) | Rolling | Rolling | Rolling | Rolling | Rolling |
| Allows Federal ACRS or MACRS Depreciation | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Allows Federal Depletion | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Throwback Rule | Yes | Yes | Yes | Yes | No (differs) | Yes | No (differs) |
| Foreign Tax Deductibility | No | Yes (differs) | No | No | Yes (differs) | Yes (differs) | Yes (differs) |
| Corporate AMT | No | No | No | No | No | No | No |
| Brackets Indexed for Inflation | Flat CIT | No (differs) | Flat CIT | No (differs) | Flat CIT | Flat CIT | GRT (differs) |
Individual Income Taxes: Individual Income Tax Rates
| Variable | Oklahoma | Arkansas | Colorado | Kansas | Missouri | New Mexico | Texas |
|---|---|---|---|---|---|---|---|
| Bracket 1 | 2.5% > $3,750 | 2.0% > $0 (differs) | 4.4% > $0 (differs) | 5.2% > $0 (differs) | 2.0% > $1,348 (differs) | 1.5% > $0 (differs) | No Income Tax (differs) |
| Bracket 2 | 3.5% > $4,900 | 3.7% > $4,700 (differs) | n.a. (differs) | 5.58% > $23,000 (differs) | 2.5% > $2,696 (differs) | 3.2% > $5,500 (differs) | n.a. (differs) |
| Bracket 3 | 4.5% > $7,200 | n.a. (differs) | n.a. (differs) | n.a. (differs) | 3.0% > $4,044 (differs) | 4.3% > $16,500 (differs) | n.a. (differs) |
| Bracket 4 | n.a. | n.a. | n.a. | n.a. | 3.5% > $5,392 (differs) | 4.7% > $33,500 (differs) | n.a. |
| Bracket 5 | n.a. | n.a. | n.a. | n.a. | 4.0% > $6,740 (differs) | 4.9% > $66,500 (differs) | n.a. |
| Bracket 6 | n.a. | n.a. | n.a. | n.a. | 4.5% > $8,088 (differs) | 5.9% > $210,000 (differs) | n.a. |
| Bracket 7 | n.a. | n.a. | n.a. | n.a. | 4.7% > $9,436 (differs) | n.a. | n.a. |
| Standard Deduction (Single Filer) | $6,350 | $2,470 (differs) | $16,100 (differs) | $3,605 (differs) | $16,100 (differs) | $16,100 (differs) | n.a. (differs) |
| Personal Exemption (Single Filer) | $1,000 | n.a. (differs) | n.a. (differs) | $9,160 (differs) | n.a. (differs) | n.a. (differs) | n.a. (differs) |
| Personal Exemption Credit (Single Filer) | n.a. | $29 (differs) | n.a. | n.a. | n.a. | n.a. | n.a. |
| Personal Exemption per Dependent | $1,000 | n.a. (differs) | n.a. (differs) | $2,320 (differs) | n.a. (differs) | $4,000 (differs) | n.a. (differs) |
| Personal Exemption Credit per Dependent | n.a. | $29 (differs) | n.a. | n.a. | n.a. | n.a. | n.a. |
| Average Local Income Tax Rate | None | None | 0.06% (differs) | None | 1.00% (differs) | None | None |
| Surtaxes on Wage Income | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. |
Individual Income Taxes: Marriage Penalty, Capital Income, Indexation
| Variable | Oklahoma | Arkansas | Colorado | Kansas | Missouri | New Mexico | Texas |
|---|---|---|---|---|---|---|---|
| Marriage Penalty | No | Yes (differs) | No | No | No | Yes (differs) | n.a. (differs) |
| Married Couples Can File Separately on One Return | No | Yes (differs) | No | No | Yes (differs) | No | n.a. (differs) |
| Convenience Rule | No | No | No | No | No | No | No |
| Interest Taxed | Yes | Yes | Yes | Yes | Yes | Yes | n.a. (differs) |
| Dividends Taxed | Yes | Yes | Yes | Yes | Yes | Yes | n.a. (differs) |
| Capital Gains Taxed | Yes | Yes | Yes | Yes | No (differs) | Yes | n.a. (differs) |
| Combined Capital Gains Tax Rate | 4.5% | 1.85% (differs) | 4.4% (differs) | 5.58% (differs) | 0% (differs) | 5.9% (differs) | n.a. (differs) |
| Tax Brackets Indexed for Inflation | No | Yes (differs) | Yes (differs) | No | Yes (differs) | No | n.a. (differs) |
| Standard Deduction Indexed for Inflation | No | Yes (differs) | Yes (differs) | No | Yes (differs) | Yes (differs) | n.a. (differs) |
| Personal Exemption Indexed for Inflation | No | Yes (differs) | Yes (differs) | No | Yes (differs) | Yes (differs) | n.a. (differs) |
| Progressivity Ratio | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.37 (differs) | n.a. (differs) |
Individual Income Taxes: Other Individual Base Variables
| Variable | Oklahoma | Arkansas | Colorado | Kansas | Missouri | New Mexico | Texas |
|---|---|---|---|---|---|---|---|
| Federal Income Used as State Tax Base | Yes | No (differs) | Yes | Yes | Yes | Yes | n.a. (differs) |
| Conformity Status | Rolling | Static (not current) (differs) | Rolling | Rolling | Rolling | Rolling | n.a. (differs) |
| Credits for Taxes Paid to Other States | Yes | Yes | Yes | Yes | Yes | Yes | n.a. (differs) |
| AMT Levied | No | No | Yes (differs) | No | No | No | n.a. (differs) |
| Recognition of S Corporation Status | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Section 179 Expensing Limit | $2,560,000 | $1,250,000 (differs) | $2,560,000 | $2,560,000 | $2,560,000 | $2,560,000 | $2,560,000 |
| Tips | Taxable | Taxable | Exempt (differs) | Taxable | Taxable | Taxable | n.a. (differs) |
| Overtime | Taxable | Taxable | Taxable | Taxable | Taxable | Taxable | n.a. (differs) |
| Filing and Withholding Threshold Index | 0.735 | 0 (differs) | 0 (differs) | 0 (differs) | 0.339 (differs) | 2.5 (differs) | 10 (differs) |
Individual Income Taxes: Other Individual Income Variables
| Variable | Oklahoma | Arkansas | Colorado | Kansas | Missouri | New Mexico | Texas |
|---|---|---|---|---|---|---|---|
| Income Recapture | No | Yes (differs) | No | No | No | No | n.a. (differs) |
Sales Taxes: Sales and Excise Tax Rates
| Variable | Oklahoma | Arkansas | Colorado | Kansas | Missouri | New Mexico | Texas |
|---|---|---|---|---|---|---|---|
| State Sales Tax Rate | 4.50% | 6.50% (differs) | 2.90% (differs) | 6.50% (differs) | 4.23% (differs) | 4.88% (differs) | 6.25% (differs) |
| Average Local Sales Tax Rate | 4.56% | 2.98% (differs) | 4.99% (differs) | 2.21% (differs) | 4.22% (differs) | 2.80% (differs) | 1.95% (differs) |
| Maximum Local Sales Tax Rate | 7.00% | 6.125% (differs) | 9.10% (differs) | 4.25% (differs) | 6.25% (differs) | 4.5625% (differs) | 2.00% (differs) |
| Gasoline Tax (Cents per Gallon) | 20.00 | 25.00 (differs) | 30.18 (differs) | 25.03 (differs) | 29.99 (differs) | 18.88 (differs) | 20.00 |
| Diesel Tax (Cents per Gallon) | 20 | 28.8 (differs) | 35.68 (differs) | 27.03 (differs) | 29.99 (differs) | 22.88 (differs) | 20 |
| Cigarette Tax (Dollars per Pack of 20) | $2.03 | $1.15 (differs) | $2.24 (differs) | $1.29 (differs) | $0.17 (differs) | $2.00 (differs) | $1.41 (differs) |
| Beer Tax (Dollars per Gallon) | $0.4032 | $0.3722 (differs) | $0.08 (differs) | $0.18 (differs) | $0.06 (differs) | $0.41 (differs) | $0.1935 (differs) |
| Spirits Tax (Dollars per Gallon) | $5.56 | $9.76 (differs) | $2.28 (differs) | $2.50 (differs) | $2.00 (differs) | $6.06 (differs) | $2.40 (differs) |
| Vapor Tax Ratio to Cigarette Tax | n.a. | n.a. | 146.5333% (differs) | 5.00% (differs) | n.a. | 27.7778% (differs) | n.a. |
Sales Taxes: Business-to-Business Exemptions
| Variable | Oklahoma | Arkansas | Colorado | Kansas | Missouri | New Mexico | Texas |
|---|---|---|---|---|---|---|---|
| Business Inputs | Some Taxable | Some Taxable | Some Taxable | Some Taxable | Some Taxable | Some Taxable | Some Taxable |
| Farm Equipment | Exempt | Exempt | Exempt | Exempt | Exempt | Partial (differs) | Exempt |
| Office Equipment | Taxable | Taxable | Taxable | Taxable | Taxable | Taxable | Taxable |
| Manufacturing Machinery | Exempt | Exempt | Exempt | Exempt | Exempt | Exempt | Exempt |
| Manufacturing Raw Materials | Exempt | Exempt | Exempt | Exempt | Exempt | Exempt | Exempt |
| Business Fuel and Utilities | Exempt | Partial (differs) | Exempt | Exempt | Exempt | Exempt | Exempt |
| Business Leases and Rentals | Taxable | Taxable | Taxable | Taxable | Taxable | Taxable | Taxable |
| Information Services | Exempt | Exempt | Exempt | Exempt | Exempt | Taxable (differs) | Taxable (differs) |
| Software as a Service (SaaS) | Exempt | Exempt | Exempt | Exempt | Exempt | Taxable (differs) | Partial (differs) |
| Platform as a Service (PaaS) | Exempt | Exempt | Exempt | Exempt | Exempt | Taxable (differs) | Partial (differs) |
| Digital B2B Products | Exempt | Taxable (differs) | Exempt | Exempt | Exempt | Taxable (differs) | Taxable (differs) |
| Payroll Services | Exempt | Exempt | Exempt | Exempt | Exempt | Taxable (differs) | Partial (differs) |
| Data Center Purchases | Taxable | Exempt (differs) | Taxable | Exempt (differs) | Exempt (differs) | Partial (differs) | Partial (differs) |
| Digital Advertising Tax | No | No | No | No | No | Yes (differs) | No |
Sales Taxes: Consumer Goods and Services in the Base
| Variable | Oklahoma | Arkansas | Colorado | Kansas | Missouri | New Mexico | Texas |
|---|---|---|---|---|---|---|---|
| Groceries | Alternate Rate | Alternate Rate | Exempt (differs) | Local Tax Only (differs) | Alternate Rate | Exempt (differs) | Exempt (differs) |
| Clothing | Taxable | Taxable | Taxable | Taxable | Taxable | Taxable | Taxable |
| Prescription Medication | Exempt | Exempt | Exempt | Exempt | Exempt | Exempt | Exempt |
| Nonprescription Medication | Taxable | Taxable | Taxable | Taxable | Taxable | Taxable | Exempt (differs) |
| Gasoline | Exempt | Exempt | Exempt | Exempt | Exempt | Exempt | Exempt |
| Landscaping | Exempt | Taxable (differs) | Exempt | Exempt | Exempt | Taxable (differs) | Taxable (differs) |
| Repair Services | Exempt | Taxable (differs) | Exempt | Taxable (differs) | Exempt | Taxable (differs) | Taxable (differs) |
| Real Estate Services | Exempt | Exempt | Exempt | Exempt | Exempt | Taxable (differs) | Exempt |
| Parking | Taxable | Taxable | Exempt (differs) | Exempt (differs) | Exempt (differs) | Taxable | Taxable |
| Dry Cleaning | Exempt | Taxable (differs) | Exempt | Taxable (differs) | Exempt | Taxable (differs) | Taxable (differs) |
| Fitness Services | Taxable | Taxable | Exempt (differs) | Taxable | Taxable | Taxable | Taxable |
| Barber Services | Exempt | Exempt | Exempt | Exempt | Exempt | Taxable (differs) | Exempt |
| Veterinary Services | Exempt | Exempt | Exempt | Exempt | Exempt | Taxable (differs) | Exempt |
| E-Books | Exempt | Taxable (differs) | Taxable (differs) | Exempt | Exempt | Taxable (differs) | Taxable (differs) |
| Streaming Video | Exempt | Taxable (differs) | Taxable (differs) | Exempt | Exempt | Taxable (differs) | Taxable (differs) |
| Medical Services | Exempt | Exempt | Exempt | Exempt | Exempt | Taxable (differs) | Exempt |
| Legal Services | Exempt | Exempt | Exempt | Exempt | Exempt | Taxable (differs) | Exempt |
| Financial Services | Exempt | Exempt | Exempt | Exempt | Exempt | Taxable (differs) | Exempt |
| Accounting Services | Exempt | Exempt | Exempt | Exempt | Exempt | Taxable (differs) | Exempt |
| Sales Tax Holiday | Yes | Yes | No (differs) | No (differs) | Yes | Yes | Yes |
Sales Taxes: Sales Tax Structure
| Variable | Oklahoma | Arkansas | Colorado | Kansas | Missouri | New Mexico | Texas |
|---|---|---|---|---|---|---|---|
| Uniform Base Definitions | Yes | Yes | No (differs) | Yes | Yes | Yes | Yes |
| Unified Tax Administration | Yes | Yes | No (differs) | Yes | Yes | Yes | Yes |
| Safe Harbor for Remote Sellers | Gross Sales Threshold | Sales or Transactions Threshold (differs) | Gross Sales Threshold | Gross Sales Threshold | Gross Sales Threshold | Gross Sales Threshold | Gross Sales Threshold |
Property Taxes: Property and Capital Stock Tax Rates
| Variable | Oklahoma | Arkansas | Colorado | Kansas | Missouri | New Mexico | Texas |
|---|---|---|---|---|---|---|---|
| Property Tax Collections per Capita | $996 | $961 (differs) | $2,379 (differs) | $2,017 (differs) | $1,567 (differs) | $1,251 (differs) | $2,320 (differs) |
| Property Tax as a Percentage of Personal Income | 1.56% | 1.62% (differs) | 2.88% (differs) | 3.06% (differs) | 2.41% (differs) | 2.14% (differs) | 3.33% (differs) |
| Assessment Limit | Yes | Yes | No (differs) | No (differs) | No (differs) | Yes | Yes |
| Levy Limit | No | Yes (differs) | Yes (differs) | No | Yes (differs) | Yes (differs) | Yes (differs) |
| Capital Stock Tax Rate | None | 0.3% (differs) | None | None | None | None | None |
| Capital Stock Tax Maximum Payment | n.a. | Unlimited (differs) | n.a. | n.a. | n.a. | n.a. | n.a. |
| Payment Options for Capital Stock and Corporate Income Taxes | n.a. | Pay both (differs) | n.a. | n.a. | n.a. | n.a. | n.a. |
Property Taxes: Property Tax Bases
| Variable | Oklahoma | Arkansas | Colorado | Kansas | Missouri | New Mexico | Texas |
|---|---|---|---|---|---|---|---|
| Tangible Personal Property Tax | Yes | Yes | Yes | Yes | Yes | No (differs) | Yes |
| Tangible Personal Property De Minimis Exemption | None | None | $56,000 (differs) | None | None | n.a. (differs) | $125,000 (differs) |
| Intangible Property Tax | No | No | No | No | No | No | No |
| Inventory Tax | Yes | Yes | No (differs) | No (differs) | No (differs) | No (differs) | Yes |
| Real Estate Transfer Tax | Yes | Yes | Yes | No (differs) | No (differs) | No (differs) | No (differs) |
| Split Roll | No | No | Yes (differs) | Yes (differs) | Yes (differs) | Yes (differs) | No |
| Split Roll Ratio | 1.00 | 1.00 | 3.82 (differs) | 2.17 (differs) | 1.68 (differs) | 1.11 (differs) | 1.00 |
| Estate Tax | No | No | No | No | No | No | No |
| Inheritance Tax | No | No | No | No | No | No | No |
| Gift Tax | No | No | No | No | No | No | No |
Unemployment Insurance Taxes: UI Tax Rates
| Variable | Oklahoma | Arkansas | Colorado | Kansas | Missouri | New Mexico | Texas |
|---|---|---|---|---|---|---|---|
| Minimum Rate | 0.20% | 0.20% | 0.72% (differs) | 0.00% (differs) | 0.00% (differs) | 0.33% (differs) | 0.25% (differs) |
| Maximum Rate | 5.80% | 10.10% (differs) | 10.85% (differs) | 6.95% (differs) | 6.00% (differs) | 6.40% (differs) | 6.25% (differs) |
| Taxable Wage Base | $25,000 | $7,000 (differs) | $30,600 (differs) | $15,100 (differs) | $9,000 (differs) | $34,800 (differs) | $9,000 (differs) |
| Most Favorable Schedule: Minimum Rate | 0.01% | 0.10% (differs) | 0.51% (differs) | 0.20% (differs) | 0.00% (differs) | 0.33% (differs) | 0.00% (differs) |
| Most Favorable Schedule: Maximum Rate | 5.50% | 6.00% (differs) | 6.28% (differs) | 7.60% (differs) | 5.40% (differs) | 5.40% (differs) | 6.00% (differs) |
| Least Favorable Schedule: Minimum Rate | 0.30% | 0.08% (differs) | 0.75% (differs) | 0.20% (differs) | 0.00% (differs) | 0.33% (differs) | 0.00% (differs) |
| Least Favorable Schedule: Maximum Rate | 9.20% | 6.00% (differs) | 10.39% (differs) | 7.60% (differs) | 7.80% (differs) | 5.40% (differs) | 6.00% (differs) |
| Employer Contributions as a Share of Total Wages | 0.38% | 0.14% (differs) | 0.62% (differs) | 0.28% (differs) | 0.21% (differs) | 0.45% (differs) | 0.22% (differs) |
| Employer Contributions as a Share of Taxable Wages | 0.84% | 0.88% (differs) | 1.86% (differs) | 0.83% (differs) | 1.08% (differs) | 0.86% (differs) | 1.45% (differs) |
| Trust Fund Solvency Ratio | 0.84 | 1.06 (differs) | 0.4 (differs) | 1.67 (differs) | 0.7 (differs) | 0.56 (differs) | 0.04 (differs) |
| New Employer Rate | 1.50% | 2.00% (differs) | 1.70% (differs) | 1.75% (differs) | 2.70% (differs) | 1.00% (differs) | 2.70% (differs) |
Unemployment Insurance Taxes: Experience Formulas and Charging Methods
| Variable | Oklahoma | Arkansas | Colorado | Kansas | Missouri | New Mexico | Texas |
|---|---|---|---|---|---|---|---|
| Experience Formula Based On | Benefit Wage Ratio | Reserve Ratio (differs) | Reserve Ratio (differs) | Reserve Ratio (differs) | Reserve Ratio (differs) | Benefits Ratio (differs) | Benefits Ratio (differs) |
| Benefits Charged in Proportion to Base-Period Wages | Yes | Yes | No (base-period employers in inverse chronological order) (differs) | Yes | Yes | Yes | Yes |
| Charged If Employee's Benefit Award Is Reversed | No | No | No | Yes (differs) | No | No | No |
| Charged for Reimbursements on Combined Wage Claims | Yes | Yes | No (differs) | Yes | Yes | Yes | Yes |
| Charged If Employee Left Voluntarily | No | No | No | No | No | No | No |
| Charged If Employee Was Discharged for Misconduct | No | No | No | No | No | No | No |
| Charged If Employee Refused Suitable Work | No | Yes (differs) | Yes (differs) | Yes (differs) | No | No | Yes (differs) |
| Charged If Employee Continues to Work Part-Time | No | No | No | No | No | No | Yes (differs) |
Unemployment Insurance Taxes: Other UI Base Variables
| Variable | Oklahoma | Arkansas | Colorado | Kansas | Missouri | New Mexico | Texas |
|---|---|---|---|---|---|---|---|
| Solvency Tax | Yes | Yes | Yes | Yes | Yes | No (differs) | Yes |
| Taxes for Socialized Costs or Negative Balance Employers | No | No | No | No | No | No | Yes (differs) |
| Loan and Interest Repayment Surtaxes | No | Yes (differs) | Yes (differs) | No | Yes (differs) | No | Yes (differs) |
| Reserve Taxes | No | No | No | No | No | No | No |
| Surtaxes for UI Administration or Non-UI Purposes | Yes | Yes | No (differs) | No (differs) | Yes | No (differs) | Yes |
| Temporary Disability Insurance | No | No | No | No | No | No | No |
| Voluntary Contributions | No | Yes (differs) | Yes (differs) | Yes (differs) | Yes (differs) | Yes (differs) | Yes (differs) |
| Years to Qualify for Experience Rating | 2 | 3 (differs) | 1 (differs) | 2 | 2 | 2 | 1.5 (differs) |
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About the Authors
Janelle Fritts is a Senior Policy Analyst with the Tax Foundation’s Center for State Tax Policy. She is the lead researcher on the annual State Tax Competitiveness Index and serves as a resource to policymakers in their efforts to modernize and improve the structures of their state tax codes. Her work has been cited in The New York Times, the Associated Press, Bloomberg, and numerous state media outlets across the country.
Jared Walczak is a Senior Fellow at the Tax Foundation, where he spent five years as Vice President of State Projects, and president of Walczak Policy Consulting.
Nicole Fox is a Policy Analyst with the Center for State Tax Policy at the Tax Foundation, where she serves as a resource to policymakers in their efforts to modernize and improve the structure of their state tax codes.
Katherine Loughead is the Vice President of State Tax Policy at the Tax Foundation, where she oversees the state tax policy team’s research agenda and serves as a resource to policymakers in their efforts to modernize and improve the structure of their state tax codes.
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