Tax policy in Oklahoma

in Oklahoma

Fiscal Budgets Oklahoma state budget and finances Tax policy in Oklahoma Finance Financial regulation in Oklahoma Pensions Public pensions in Oklahoma Pension health in Oklahoma Civil liberties Affirmative action in Oklahoma Campaign finance requirements in Oklahoma Campaign finance requirements for Oklahoma ballot measures Nonprofit regulation in Oklahoma Education Charter schools in Oklahoma Higher education in Oklahoma Public education in Oklahoma School choice in Oklahoma Elections Ballot access Ballot access requirements for political candidates in Oklahoma Ballot access requirements for political parties in Oklahoma Political parties in Oklahoma Ballot access requirements for presidential candidates in Oklahoma Redistricting in Oklahoma Voting in Oklahoma Energy and Environment Energy policy in Oklahoma Fracking in Oklahoma Oil and gas extraction on federal land in Oklahoma Endangered species in Oklahoma Environmental policy in Oklahoma Healthcare Healthcare policy in Oklahoma Medicaid spending in Oklahoma Effect of the Affordable Care Act in Oklahoma Immigration Immigration in Oklahoma

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Tax policy in Oklahoma

Tax rates in 2017

Personal income tax: 0.5% to 5%

State sales tax: 4.50%

Corporate income tax: 6.00%

Tax revenues in 2016

Total tax collections: $8.49 billion

Tax collections per capita: $2,164

Total state expenditures • State debt • Oklahoma state budget and finances

Oklahoma generates the bulk of its tax revenue by levying a personal income tax and a sales tax. The state derives its constitutional authority to tax from Article X of the state constitution.^[1][2]

Tax policy can vary from state to state. States levy taxes to help fund the variety of services provided by state governments. Tax collections comprise approximately 40 percent of the states' total revenues. The rest comes from non-tax sources, such as intergovernmental aid (e.g., federal funds), lottery revenues and fees. The primary types of taxes levied by state governments include personal income tax, general sales tax, excise (or special sales) taxes and corporate income tax.^[3]

Tax rates

Personal income tax

See also: Personal income tax

Oklahoma utilized a personal income tax rate ranging from 0.5 percent to 5 percent in 2017. An individual's tax liability varies according to his or her tax bracket. A tax bracket is the income range to which a tax rate applies.^[4]

The table below summarizes personal income tax rates for Oklahoma and neighboring states in 2017.^[4]

Personal exemptions

States that collect a personal income tax allow individuals to claim personal exemptions on income taxes each year. The personal exemption indicates that only a person's income above a certain level is subject to taxation. ^[5]

Exemptions work by reducing the amount of an individual's taxable income. Both state and federal taxes allow exemptions. The state exemptions for Oklahoma and its neighboring states as reported by the Tax Policy Center are reported in the chart below.^[6]

Capital gains tax

See also: Capital gains tax

A capital gains tax is a tax levied on the profit gleaned from the sale of a capital asset. Examples of capital assets include stocks, businesses, land parcels, homes, personal items and more. Capital gains are taxable at both the federal and state levels. While the federal government taxes capital gains at a lower rate than regular personal income, states usually tax capital gains at the same rates as regular income. ^[7][8][9]

The table below summarizes uppermost capital gains tax rates for Oklahoma and neighboring states in 2015.

Sales tax

See also: Sales tax

Almost all states employ a statewide sales tax, which ranges from 2.9 percent in Colorado to 7.25 percent in California. Additionally, many states allow the levying of local sales taxes, which are then added to the state's tax.

Oklahoma's state sales tax was 4.50% percent in 2017. The average local tax was about 4.36% percent, meaning that the average combined sales tax was about 8.86% percent. The table below displays the state tax rates, average local tax rates, and average combined tax rates for Oklahoma and its neighboring states.^[10]

The table below summarizes sales tax rates for Oklahoma and neighboring states in 2017 as well as the state's policy with respect to types of items commonly exempted from sales tax (i.e., food, prescription drugs and nonprescription drugs).^[11]

Excise taxes

See also: Excise taxes

Excise taxes, also known as selective sales or differential commodity taxes, are levied for the sales of specific goods or services. Excise taxes are considered indirect taxes because they are not charged directly to individuals. In most cases, the excise tax is paid by the producer or seller of an item. The cost of the tax is then included in the sale price of the item and passed on to the consumer. The tables below provide excise tax rates for motor fuel, alcohol and cigarettes in Oklahoma and neighboring states.^{[12][13][14][15]}

Corporate income tax

See also: Corporate income tax

Oklahoma levies a corporate income tax rate of 6 percent. The table below compares the corporate income tax rates of some of its neighboring states.^[16][17]

Property tax

See also: Property tax

Most often, property tax applies to real estate, although some states levy property taxes on other types of personal property, such as automobiles. Generally speaking, an individual's property tax liability is determined by the tax rate and the tax base, which is "determined by both the assessed value of the property and ... the share of the assessed value that is subject to tax." To learn more about property taxes, including tabulation methods, see this page. Property tax rates can vary substantially from locality to locality within a state.^{[18][19][20] [18][19]}

The table below provides the mean amount of property taxes paid in 2012, as well as property tax as a mean percentage of home value for 2014, in Oklahoma and neighboring states.^[18]

The table below lists per capita state and local property tax collections for Oklahoma and neighboring states for fiscal year 2013.^[21]

Estate and inheritance taxes

See also: Estate and inheritance taxes

Estate and inheritance taxes are levied on the property of deceased individuals (decedents). Generally speaking, an estate tax is applied to the value of a decedent's property and is paid from the estate before distribution to any heirs. By contrast, an inheritance tax is paid by the heir or heirs of a decedent's assets.^[22][23][24]

Oklahoma does not levy an estate tax, although residents are liable for the federal estate tax. The table below summarizes the estate tax rates for Oklahoma and neighboring states in 2016.^[24]

Tax revenues

See also: Oklahoma state budget and finances

The table below breaks down state government tax collections by source in 2016 (comparable figures from surrounding states are also provided to give additional context). Figures for all columns except "2016 population" and "Per capita collections" are rendered in thousands of dollars (for example, $2,448 translates to $2,448,000). Figures in the columns labeled "2016 population" and "Per capita collections" have not been abbreviated.^[25]

The table below lists 2016 tax collections by source as percentages of total collections. About 44.5 percent of Oklahoma's total state tax collections came from sales taxes and gross receipts.^[25]

Tax ballot measures

Voting on taxes
Ballot measures
By state
By year
Not on ballot
Local City taxes County taxes School taxes Property taxes Sales taxes Income taxes Other taxes

See also: Taxes on the ballot and List of Oklahoma ballot measures

Ballotpedia has tracked the following ballot measures relating to taxes in Oklahoma.

1. Oklahoma Bridge and Highway Trust Fund, State Question 723 (September 2005)
2. Oklahoma Cigarette Taxes, State Question 179 (August 1933)
3. Oklahoma Taxation of Oleomargarine, State Question 236 (1938)
4. Oklahoma State Withholding Tax, State Question 395 (1960)
5. Oklahoma Double Taxation and Tax Rates on Income, State Question 539 (1979)
6. Oklahoma Ad Valorem Tax, State Question 138 (1926)
7. Oklahoma Authorization of Tax Levies, State Question 141 (August 1926)
8. Oklahoma Ad Valorem Taxes for Public Schools, State Question 368 (April 1955)
9. Oklahoma Veteran Property Tax, State Question 735 (2008)
10. Oklahoma Tax Exemption Application, State Question 741 (2008)
11. Oklahoma Ad Valorem Taxes on Personal Property, State Question 379 (July 1958)
12. Oklahoma Freeport Property Tax Exemptions, State Question 734 (2006)
13. Oklahoma Property Taxes for Economic Development, State Question 697 (2002)
14. Oklahoma Tax Abatement, State Question 702 (2002)
15. Oklahoma Levy for Health Departments, State Question 685 (2000)
16. Oklahoma Procedures for Ad Valorem Taxes, State Question 690 (2000)
17. Oklahoma Vehicle Registration Fees and Taxes, State Question 691 (August 2000)
18. Oklahoma Property Tax Exemption, State Question 715 (2004)
19. Oklahoma Limits on Property Tax Assessment, State Question 675 (1996)
20. Oklahoma Property Tax Exemption for Pollution Control, State Question 683 (1998)
21. Oklahoma Protest Against Levies, State Question 152 (August 1928)
22. Oklahoma Homestead Exemption, State Question 201 (September 1935)
23. Oklahoma Voter Approval for Tax Increases, State Question 640 (March 1992)
24. Oklahoma Limit Property Tax, State Question 669 (March 1996)
25. Oklahoma Taxes for Economic Development, State Question 707 (2004)
26. Oklahoma Ad Valorem Tax for Common Schools, State Question 109 (1920)
27. Oklahoma Taxes for School Purposes, State Question 168 (July 1932)
28. Oklahoma State Question 215 (1940)
29. Oklahoma Ad Valorem Tax for Schools, State Question 314 (1946)
30. Oklahoma Ad Valorem Tax for Schools, State Question 316 (1946)
31. Oklahoma State Question 398 (1960)
32. Oklahoma State Question 421 (1964)
33. Oklahoma Tax for Common Schools, State Question 99 (1920)
34. Oklahoma Property Tax Amendment, State Question 758 (2012)
35. Oklahoma Tobacco Sales Tax Elimination, State Question 713 (2004)
36. Oklahoma Limits on Value of Real Property, State Question 676 (1996)
37. Oklahoma Limits on Value of a Homestead, State Question 677 (1996)
38. Oklahoma State Board of Equalization, State Question 184 (August 1933)
39. Oklahoma Intangible Tax Ban Amendment, State Question 766 (2012)
40. Oklahoma Homestead Exemption Transfer for Disabled Veterans Amendment, State Question 770 (2014)
41. Oklahoma Homestead Exemption for Surviving Spouse of Military Personnel Amendment, State Question 771 (2014)
42. Oklahoma Taxes for Maintenance of Common Schools, State Question 23 (1910)
43. Oklahoma Taxes for Common Schools, State Question 45 (1912)
44. Oklahoma Taxes for Common Schools, State Question 57 (August 1913)
45. Oklahoma Taxes for Common School, State Question 59 (August 1914)
46. Oklahoma System of Taxation, State Question 68 (August 1914)
47. Oklahoma Maximum Levy of State Taxes, State Question 74 (1914)
48. Oklahoma Oil and Gas Tax, State Question 75 (1914)
49. Oklahoma State Tax Commission, State Question 81 (August 1916)
50. Oklahoma Taxes for Common Schools, State Question 83 (August 1916)
51. Oklahoma Ad Valorem Taxes, State Question 114 (August 1922)
52. Oklahoma Limit Ad Valorem Tax, State Question 124 (October 1923)
53. Oklahoma Levy for Public Schools, State Question 145 (1926)
54. Oklahoma Income Tax Laws, State Question 167 (December 1931)
55. Oklahoma Relief from Ad Valorem Taxes, State Question 175 (1932)
56. Oklahoma Ad Valorem Taxes, State Question 185 (August 1933)
57. Oklahoma Homestead Exemption, State Question 208 (September 1935)
58. Oklahoma Graduated Tax on Land, State Question 215 (1940)
59. Oklahoma Motor Vehicle Mileage and License Tax, State Question 253 (1940)
60. Oklahoma Tax Levy for Schools, State Question 319 (July 1946)
61. Oklahoma Tax Levy for Schools, State Question 327 (July 1948)
62. Oklahoma Highway Users' Revenue, State Question 326 (1950)
63. Oklahoma Property Taxes and Assessments, State Question 361 (1954)
64. Oklahoma Tax Levy for the Health Department, State Question 390 (July 1960)
65. Oklahoma Tax Levy for Libraries, State Question 392 (July 1960)
66. Oklahoma Levy for School Districts, State Question 421 (1964)
67. Oklahoma Increase in Sales Tax, State Question 425 (April 1965)
68. Oklahoma Local Support Levy for School Districts, State Question 430 (September 1965)
69. Oklahoma Property Tax for Schools, State Question 434 (May 1966)
70. Oklahoma Methods of Taxation, State Question 444 (August 1967)
71. Oklahoma Taxation of Personal Property, State Question 460 (August 1968)
72. Oklahoma Taxation of Personal Property, State Question 443 (September 1968)
73. Oklahoma Property Assessment, State Question 486 (1972)
74. Oklahoma Tax Levy for School Districts, State Question 487 (1972)
75. Oklahoma Levy for County Government, State Question 497 (August 1974)
76. Oklahoma Taxes for Libraries, State Question 507 (1976)
77. Oklahoma Ad Valorem Taxes for Schools, State Question 546 (1980)
78. Oklahoma Ad Valorem Tax Apportionment, State Question 549 (1980)
79. Oklahoma Tax for Health Departments, State Question 561 (August 1984)
80. Oklahoma Tax for Parks, State Question 570 (1984)
81. Oklahoma Tax for Roads and Jails, State Question 573 (1984)
82. Oklahoma Tax for Indigent Healthcare, State Question 575 (1984)
83. Oklahoma Local Incentive Levy, State Question 580 (1984)
84. Oklahoma Property Tax Exemptions, State Question 582 (1984)
85. Oklahoma Manufacturing Tax Exemption, State Question 588 (April 1985)
86. Oklahoma Repeal Poll Tax, State Question 590 (1986)
87. Oklahoma Federal Property Tax, State Question 597 (1986)
88. Oklahoma Extra Mills for Hospitals, State Question 604 (March 1988)
89. Oklahoma Manufacturing Property Tax Exemption, State Question 618 (August 1988)
90. Oklahoma Property Tax Levies, State Question 634 (June 1990)
91. Oklahoma Tax Exemptions and Tax Relief, State Question 641 (1990)
92. Oklahoma Cooperative Extension Offices, State Question 646 (1992)
93. Oklahoma Taxes on Healthcare Providers, State Question 647 (1992)
94. Oklahoma Local Property Tax Exemption Elections, State Question 648 (1992)
95. Oklahoma Levy for School Districts, State Question 659 (February 1994)
96. Oklahoma Library Tax Levy, State Question 666 (1994)
97. Oklahoma Storm Shelter Tax Exemptions, State Question 696 (2002)
98. Oklahoma State Question 801, Allow Certain Voter-Approved Property Taxes to Fund School District Operations Amendment (2018)

Recent news

The link below is to the most recent stories in a Google news search for the terms Oklahoma taxes. These results are automatically generated from Google. Ballotpedia does not curate or endorse these articles.

See also

• Oklahoma
• Oklahoma state budget and finances
• Personal income tax
• Sales tax
• Corporate income tax
• Property tax

External links

• Tax Policy Center
• Federation of Tax Administrators
• Tax Foundation

Footnotes

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