Oklahoma

Tax Rate Range: * Low - 0.5%; High - 6.25%
Income Brackets: Lowest - $1,000; Highest - $10,500
Number of Brackets: 8
Personal Exemptions: Single - $1,000; Married - $2,000; Dependents - $1,000
Additional Exemptions: 65 or older - $1,000
Standard Deduction: Single - $1,000; Married filing jointly - $2,000; Married filing separately - $500 to $1,000
Medical/Dental Deduction: Federal amount
Federal Income Tax Deduction: Full but higher rates apply to the remaining taxable income
Retirement Income Taxes: Social Security is exempt. Exclusion of up to $10,000 for qualified private pension income if federal adjusted gross income is not more than $25,000 (individual filers) or $50,000 (married filing jointly). Total public and private pension exemptions cannot exceed $7,500 per person. Out-of-state government pensions qualify for the $4,400 exemption of private pensions.

State Tax Software

Retired Military Pay: Up to $10,000 of retirement pay exempt.
Military Disability Retired Pay: Disability Portion - Length of Service Pay; Member on September 24, 1975 - No tax; Not Member on September 24, 1975 - Taxed, unless combat incurred. Retired Pay - Based solely on disability: Member on September 24, 1975 - No tax; Not Member on September 24, 1975 - Taxed, unless all pay based on disability and disability resulted from armed conflict, extra-hazardous service, simulated war, or an instrumentality of war.
VA Disability Dependency and Indemnity Compensation: Not subject to federal or state taxes
Military SBP/SSBP/RCSBP/RSFPP: Generally subject to state taxes for those states with income tax. Check with state department of revenue office.
* The rate range reported is for single persons not deducting federal income tax. For married persons filing jointly, the same rates apply to income brackets ranging from $2,000 to over $21,000. Separate schedules, with rates ranging from 0.5% to 10%, apply to taxpayers deducting federal income taxes.

Sales Taxes

State Sales Tax: 4.5% (prescription drugs exempt); cities, towns and counties may levy local sales taxes. The county tax cannot exceed 2% but some cities have sales taxes over 4.25%.
Gasoline Tax: 17 cents/gallon
Diesel Fuel Tax: 14 cents/gallon
Gasohol Tax: 17 cents/gallon
Cigarette Tax: $1.03/pack of 20

Real property is assessed at an amount between 11% and 13.5% of its fair cash value. Oklahoma offers a homestead exemption for homeowners which reduces the property's assessed value by $1,000. In most cases this will result in a tax savings of $80 to $120. If gross household income is under $20,000 a year or less and you meet all of the homestead exemption requirements, you may qualify for an additional $1,000 exemption. A property tax refund worth up to $200 is available if you are 65 or older, or totally disabled, and have an income of $12,000 or less. There is a 100% property tax exemption for disabled veterans. Veterans and the surviving spouse of a veteran may also qualify for a property tax exemption.
Senior citizens with a household income of less than $25,000 previously qualified for a valuation freeze on their primary residence. This meant that their property tax would not go up just because the value of other homes in the neighborhood has gone up. As the result of a law passed in 2004, the amount of qualifying income would be fixed to the Federal Department of Housing and Urban Development's estimate of median family income. To illustrate, the limit for the Tulsa area is $54,500. Call 405-713-1236. For more information on ad valorem taxes, click here.

There is no inheritance tax but there is an estate tax. The amount of the federal credit for state death taxes due the state is adjusted, if necessary, after determination and adjustments, if any, of the value of the property to be taxed in the state. The percentage of the credit due the state is determined based on the ratio of the adjusted value of the property in Oklahoma to the adjusted value of the total estate.
For further information, visit the Oklahoma Tax Commission site or call 405-521-3160.