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Oklahoma State Taxes


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 and Property Taxes in Oklahoma

Sales Taxes – 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%.

Payroll 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

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