Oklahoma taxes

Oklahoma taxes personal income at 0.25% to 4.75%, and Social Security is not taxed at all. A sole proprietor owes no separate business tax. An LLC pays a $25 annual certificate fee. C corporations pay 4% corporate income tax. Oklahoma's franchise tax is gone: 2023 was the last year a return was required.

Personal income tax

Oklahoma residents file Form 511. The rate is 0.25% on the first $1,000, 0.75% on the next $1,500, 1.75% on the next $1,250, 2.75% on the next $1,150, 3.75% on the next $2,300, 4.75% on everything above $7,200 of taxable income. Married couples filing jointly, heads of household and qualifying surviving spouses get doubled steps: 0.25% on the first $2,000, 0.75% on the next $3,000, 1.75% on the next $2,500, 2.75% on the next $2,300, 3.75% on the next $4,600, 4.75% on everything above $14,400. Below $100,000 of taxable income you read your tax from the printed table.

You must use the same kind of deduction as on your federal return. If you took the federal standard deduction, you take the Oklahoma one. Social Security and military retirement are not taxed, and up to $10,000 per person of other retirement income is excluded.

Return

Form 511

Rates

0.25%, 0.75%, 1.75%, 2.75%, 3.75%, 4.75%

Standard deduction

$6,350 single or married filing separately, $9,350 head of household, $12,700 married filing jointly

Itemized deductions

Capped at $17,000, with charitable gifts and medical costs outside the cap

Exemptions

$1,000 each for you, your spouse, each dependent, and blindness

Age 65 exemption

Another $1,000, only if federal AGI is at or below $15,000 single, $25,000 joint, $12,500 separate, or $19,000 head of household

Not taxed

Social Security, military retirement, and Railroad Retirement Board benefits in full

Other retirement income

Up to $10,000 per person excluded, one limit shared by government and private pensions

Child credit

The greater of 20% of the federal child care credit or 5% of the federal child tax credit, none above $100,000 of federal AGI

Earned income credit

5% of the federal earned income credit

Sole proprietor

A sole proprietor with no LLC owes Oklahoma nothing at the business level. The annual certificate is only for registered entities, so you file none and pay no fee.

Your business profit is taxed on your own Form 511, at the personal rates above.

Single-member LLC

Every Oklahoma LLC files the LLC Annual Certificate with the Secretary of State each year and pays $25, whatever it earned. It is due on the anniversary of formation, with 60 days' grace.

Miss that window and the company becomes inactive and loses good standing. There is no fine and no warning letter, so nothing arrives to tell you. The LLC's profit is taxed on your own Form 511.

Partnership

An Oklahoma partnership files Form 514, the partnership return. The profit is taxed on the partners' own returns.

A partnership that is an LLC also files the annual certificate on its anniversary date and pays $25. A general or limited partnership that is not an LLC does not file it.

Oklahoma makes a pass-through business withhold Oklahoma tax from what it pays out to owners who live elsewhere, unless the owner files an exemption affidavit, Form OW-15. The amount is not worked out here, because it needs each owner's residence and share.

S corporation

An Oklahoma S corporation files Form 512-S. The profit is taxed on the shareholders' own returns.

There is no franchise tax return to file any more. 2023 was the last year one was required, so for 2025 there is nothing of that kind.

Oklahoma makes a pass-through business withhold Oklahoma tax from what it pays out to owners who live elsewhere, unless the owner files an exemption affidavit, Form OW-15. The amount is not worked out here, because it needs each owner's residence and share.

C corporation

A C corporation files Form 512 and pays 4% of the income apportioned to Oklahoma. A corporation working in several states does not count sales alone. Oklahoma averages three factors: property, payroll and sales. A factor the business has none of anywhere is left out of the average.

There is no minimum tax and, since 2023, no franchise tax. A corporation that filed a franchise tax return a few years ago should not go looking for one now.

Return

Form 512

Corporate income tax

4% of Oklahoma income

Multi-state profit

Average of property, payroll and sales in Oklahoma over everywhere

Franchise tax

Ended; 2023 was the last year a return was required

Estimate your state tax

Pick your business type and enter this year's numbers to see the state business tax Oklahoma charges. It assumes all your sales are in Oklahoma.

An estimate for planning, not tax advice.

Sources

• 2025 Oklahoma Resident Individual Income Tax Packet (Form 511)
• oklahoma.gov 2025 Form 512 and Form 512-S packets
• oklahoma.gov Tax Commission newsroom, 26 July 2023: the franchise tax ends after 2023
• sos.ok.gov LLC Annual Certificate
• oklahoma.gov 2025 Form 512 Packet: the 4% rate and the three-factor apportionment rule
• oklahoma.gov Tax Commission newsroom, 26 July 2023: "Tax year 2023 is the last year that franchise tax returns will be required to be filed"

Last reviewed August 2026.