TAX & LICENSE / STATE TAX SYSTEM

State Income Tax
Oklahoma’s individual income tax law is based closely on federal income tax regulations. Credits and exemptions apply to taxable income. Taxpayers add and subtract adjustments and apply Ohio’s graduated tax rates to the remaining amount. For more information or answers to specific questions, contact:

Oklahoma Tax Commission
Tax Commissioner’s Office 800-522-8165
Taxpayer Assistance 405-521-3160
www.oktax.state.ok.us

Individual Income Tax Information and Rates
www.tax.ok.gov/it1a.html

Sales & Use Taxes
Oklahoma imposes a 4.5 percent sales and use tax rate. Use tax applies to goods that are purchased outside of Oklahoma (such as Internet transactions and catalog sales) that were not taxed but were used in Oklahoma. Sales taxes are collected at the retail level; use taxes must be paid directly to the state. For more information or answers to specific questions, contact:

Oklahoma Tax Commission
www.oktax.state.ok.us

Online Sales & Use Rates
https://www.ok.gov/tax/Businesses/Tax_Types/Business_Sales_Tax/Oklahoma_Sales_and_Use_Tax_Rate_Locator_System_/

Real Property Tax
Property taxes, also known as ad valorem taxes, are the primary source of funding for county government operations. Property taxes are paid based on the value of a taxpayer’s property. The county assessor, a locally-elected officeholder, determines the value of most property in the county for tax purposes. Taxpayers owning tangible personal property in the state of Oklahoma must file a property tax return with each county where property was located on Jan. 1 of each year on or before the following March 15. Personal property then is assessed at an amount between 10 percent and 15 percent of its fair cash value. Real property is also assessed as of Jan. 1. It is valued at its “use value” — fair cash value for the highest and best use for which the property was actually used (or classified for use) during the previous calendar year.

The Ad Valorem Division functions in keeping with the parameters of the property tax system in the State of Oklahoma.  “Ad valorem” is a Latin term meaning “as to value”.  Property tax systems are based on market value of real, personal and public service properties.  All property in the State of Oklahoma is taxable unless a federal or state law provides an exemption.  Public service properties are centrally valued by the Oklahoma Tax Commission.  County Assessors in Oklahoma are responsible for establishing values of all taxable property within a county.

Oklahoma Tax Commission Ad Valorem Division
Oklahoma City 405-319-8200
https://www.ok.gov/tax/All_Taxes/Ad_Valorem/index.html