Oklahoma state income tax
Oklahoma has a state income tax. It is graduated, with a top marginal rate of 4.5%. Effective tax year 2026 (HB 2764, signed by Gov. Stitt 5/28/2025), Oklahoma consolidated from six brackets to four tiers and cut the top rate from 4.75% to 4.5%. Single/MFS: 0% on first $3,750, 2.5% on next $1,150 ($3,750-$4,900), 3.5% on next $2,300 ($4,900-$7,200), 4.5% on the remainder above $7,200. MFJ/HoH: 0% on first $7,500, 2.5% on next $2,300 ($7,500-$9,800), 3.5% on next $4,600 ($9,800-$14,400), 4.5% on the remainder above $14,400. HB 2764 also created a trigger mechanism for further automatic rate cuts toward eventual repeal when state revenue-growth benchmarks are certified by the State Board of Equalization. Capital gains are taxed under special rules (see below).
Does Oklahoma have a state income tax?
Yes. Oklahoma taxes individual income on a graduated schedule topping out at 4.5%. Effective tax year 2026 (HB 2764, signed by Gov. Stitt 5/28/2025), Oklahoma consolidated from six brackets to four tiers and cut the top rate from 4.75% to 4.5%. Single/MFS: 0% on first $3,750, 2.5% on next $1,150 ($3,750-$4,900), 3.5% on next $2,300 ($4,900-$7,200), 4.5% on the remainder above $7,200. MFJ/HoH: 0% on first $7,500, 2.5% on next $2,300 ($7,500-$9,800), 3.5% on next $4,600 ($9,800-$14,400), 4.5% on the remainder above $14,400. HB 2764 also created a trigger mechanism for further automatic rate cuts toward eventual repeal when state revenue-growth benchmarks are certified by the State Board of Equalization.
| Item | Oklahoma |
|---|---|
| State income tax | Yes, graduated |
| Top marginal rate | 4.5% |
| Capital gains | Special rules, up to 4.5% |
| State sales tax | 4.5% (plus local) |
| Avg. property tax rate | 0.79% of home value |
| Estate / inheritance tax | None |
How does Oklahoma tax capital gains?
Oklahoma taxes capital gains under special rules rather than at the ordinary income rate. The top rate that applies is 4.5%. You still owe federal capital gains tax on top of any state tax. See how capital gains tax works in 2026.
What about retirement income in Oklahoma?
Retirement income is taxed differently from wages in many states. For how Oklahoma treats Social Security, pensions, and 401(k)/IRA withdrawals, see Oklahoma retirement taxes.
Sources
- Oklahoma income tax rates and brackets: Oklahoma Department of Revenue / Taxation.
- Oklahoma capital gains treatment: Oklahoma tax authority.
- Oklahoma sales tax: Oklahoma Department of Revenue.