Research Areas
Oklahoma
The Facts on Oklahoma's Tax Climate
Here are some basic facts on Oklahoma's tax system and how it compares to other states:
Tax Freedom Day Arrives on April 2 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 2011, Oklahoma taxpayers work until April 2 to pay their total tax bill, ranking it 41st in the nation. This is 10 days earlier than national Tax Freedom Day (April 12). The Tax Freedom Days of neighboring states are: Kansas, April 10 (ranked 20th); Colorado, April 8 (ranked 24th); New Mexico, March 31 (ranked 45th); Texas, April 7 (ranked 25th); Arkansas, April 3 (ranked 35th) and Missouri, April 4 (ranked 33rd).
Full study of Tax Freedom Day, nationwide and in each state
Oklahoma's State and Local Tax Burden Slightly Above National Average
Oklahoma's state and local tax burden is currently estimated at 8.7% of income (37th nationally), below the national average of 9.8%. Compared to the 1977 data, Oklahoma had a tax burden of 8.5% (43th nationally), increasing 0.2% overall. Currently Oklahoma taxpayers pay $3,259 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 2012 Business Tax Climate Ranks 33rd
Oklahoma ranks 33rd 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. Neighboring states rank as follows: Kansas (25th), Colorado (16th), New Mexico (38th), Texas (9th), Arkansas (31st) and Missouri (15th).
50-State Comparison of Business Tax Climates (data only)
2012 State Business Tax Climate Index (full study)
Oklahoma's Individual Income Tax System
Oklahoma's personal income tax system consists of seven brackets and a top rate of 5.5%, kicking in at an income level of $8,700. Oklahoma's top rate of 5.5% is 30th highest among states levying personal income taxes. Oklahoma's 2008 state-level individual income tax collections were $768 per person, which ranked 32nd highest 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 tax structure consists of a flat tax rate of 6% on all corporate income. This tax ranks the state 35th highest among states levying corporate income taxes. In 2008, state-level corporate tax collections (excluding local taxes) were $99 per capita, which ranked 40th highest nationally.
50-State Table of Corporate Income Tax Rates, 2000-2009
50-State Table of State and Local Corporate Income Tax Collections Per Capita and Per Household, 2005
50-State Table of State Corporate Income Tax Collections Per Capita, 2006
Oklahoma's Sales and Excise Taxes
Oklahoma levies a 4.5% general sales or use tax on consumers, which is below the national median of 5.85%. In 2007 combined state and local general and selective sales tax collections were $1,267 per person, and ranks 32nd highest nationally. Oklahoma's gasoline tax stands at 17 cents per gallon and ranks 45th highest nationally. Oklahoma's cigarette tax stands at $1.03 per pack of twenty and ranks 27th highest nationally. The sales tax was adopted in 1933, the gasoline tax in 1923 and the cigarette tax in 1933.
50-state table of sales, cigarette, gas, beer, wine, and spirits tax rates.
50-State Table of State and Local General and Selective Sales Tax Collections Per Capita
Oklahoma Property Taxes Among Nation's Lowest
Oklahoma's local governments collected $506.77 in property taxes during fiscal year 2006, which is the latest year the Census Bureau published state-by-state property tax collections. Oklahoma is one of the 13 states that collect no state-level property taxes, meaning Oklahoma's per capita property tax collections for all levels of government in FY2006, ranking 47th nationally.
State property tax collections per capita by state
Federal Tax Burdens and Expenditures: Oklahoma is a Beneficiary
Oklahoma taxpayers receive more federal funding per dollar of federal taxes paid than the average state. Per dollar of Federal tax collected in 2005, Oklahoma citizens received approximately $1.36 in the way of federal spending. This ranks the state 15th highest nationally. This represent a rise from 1995 when Oklahoma received $1.30 per dollar of taxes in federal spending, ranking it 11th highest. Neighboring states and the amount of federal money received per dollar of federal taxes collected were: Kansas ($1.12), Colorado ($0.81), New Mexico ($2.03), Texas ($0.94), Arkansas ($1.41), and Missouri ($1.32).
Comparing the amount of federal taxes sent to Washington with the amount of federal spending coming back to the state
