STATE RANKING #28

Quick facts: 

-Oklahoma, businesses are assessed both an income tax and franchise tax.

-Their highest tax rate is 5.00%.

5.00%

State Income Tax

State
Income
Tax

5.00%*

Cost of Setting Up A Business

state
business
tax

AVERAGE

Property
Taxes

8.94%

Sales
Tax (average)

State Income Taxes in Oklahoma

The state of Oklahoma does have an individual income tax. Like most states with income tax, it is calculated on a marginal scale with multiple brackets (6). The tax rates range from between 0.5% to 5.00%.

State Business Taxes in Oklahoma

The state of Oklahoma has a flat Corporate income tax rate of 6.00% on all income regarding C Corporations. For other businesses that are flow-thru entities, such as S Corporations, Partnerships, LLCs, etc., they are taxed at the individual income tax rate which ranges from 0.5% to 5.00% of your Oklahoma income.

Franchise Taxes* in Oklahoma

In addition to the Corporate income tax, Oklahoma has a Franchise tax assessed on capital of the C Corporation. The tax is 0.125% on capital assets, with a maximum tax of $20,000.

Sales Taxes in Oklahoma

Like most states, Oklahoma has both a local and state sales tax rates. Their state sales tax rate is 4.50% and their local sales tax rate is 4.44% (which bring the total average sales tax rate to 8.94%). Which puts it at one of the top ten most expensive states for Sales Tax.

Property Taxes in Oklahoma

The average property tax rate for residential property in the state of Oklahoma is 0.88%. Which puts it slightly below the national average of 1.05%.

Unemployment taxes in Oklahoma

Unemployment taxes usually consist of three factors. They are the wage base, range of rates, number of schedules. Below is an outline of the three:

  • Wage Base – Oklahoma has a wage base of $18,100 for 2020
  • UI Rates – range from 0.15% to 5.50%
  • Schedules – Oklahoma has multiple rate schedules regarding UI

Oklahoma Business Entities - LLCs

Oklahoma is one of the least expensive states in the country to open an LLC. Here are some important facts:

  • Oklahoma’s annual LLC fee is $25.
  • When you register with the state, you pay a one time fee of $100
  • Secretary of State of Oklahoma website – click here
  • If you would like help setting up your LLC, we recommend using IncFile.com. They are simple and easy to use.

State #27

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