Oklahoma Tax

FULL List to Oklahoma Tax Forms

Individual Income Tax Forms

Form 511 Oklahoma Resident Income Tax Return and Sales Tax Relief Credit Form

Form 511NR Oklahoma Nonresident Part-Year Income Tax Return

Corporate Income Tax Forms

Form BT-190 Oklahoma Annual Business Activity Tax Return

Sales Tax Forms

Exemption Form

Form 13-9 Application for Refund of State and Local Sales or Use Tax

Property Tax Forms

Form OTC-901 Business Personal Property Rendition

Form 538-H Claim for Credit or Refund of Property Tax

Form OTC- 935 Individual Household Personal Property

Form OTC-921 Application for Homestead Exemption

Primary Concern:

Serious economic circumstances worldwide have done little to diminish Oklahoma's amazing economic growth since the year 2000. Due in large part to corporate friendly tax laws, Oklahoma has become a home to many new corporations, including a number of Fortune 500 companies.

Between 2000 and 2006, Oklahoma's growth domestic product grew an astonishing 50 percent, with a ten percent jump alone happening between 2005 and 2006. Per capita income has also jumped tremendously during that same period, though the median income ranks as one of the lowest in the nation. What perhaps makes Oklahoma's progress most astounding is the realization of how far they have come compared to where they were.

In the 1980s, Oklahoma was caught in a catastrophic economic megatrend, as the oil business that was the main driving force in the state's economy collapsed, driving almost 90,000 people into unemployment before 2000.

Over the next two decades Oklahoma steadily supplanted energy industries in their state with other industries, which include electronics, telecommunications, aviation, food processing, and agriculture. Nowadays, oil production accounts for less than 20% of the state's total economy, and is being steadily supplanted by other industries.

Recently, Oklahoma has agreed to a budget that is projected to eliminate what was feared to have been a $1.2 billion budget deficit, based on what it hopes to be an increase in sales taxes collected on internet orders as well as increases in the collection of traffic fines, moratoriums on tax credits, and use of federal stimulus funds.

Oklahoma is expected to have an extra reserve of $100 million to help out in the case of unforeseen budget issues. Indeed, it is a testament to Oklahoma's economic power and taxation policies that a state that was once one of the most depressed in the nation seems prepared to whether the present economic storm.

Income Taxes:

Oklahoma collects income taxes from all individuals who either reside in the state full or part time, or reside outside the state and draw income from inside Oklahoma. Income tax in Oklahoma is at a progressive rate with staggered bracketing.

For single taxpayers and married individuals filing separately, they have to pay 0.5% of the first $1,000 of the total income. Between $1,001 and $2,500, the tax is $5 (0.5% of $1,000) plus 1% of all income over the base of $1,001. Between $2,501 and $3,750 the addition percent over the base is 2%. Between $3,751 and $4,900 the additional rate over the base is 3%.

Between $4,901 and is $7,200 is an additional 4% over the base, and between $7,201 and $8,700 is an additional 5% over the base. All income over $8,791 is 5.5% over the base in additional to all the staggered rates of the previous incomes.

For married couples filing jointly, qualifying surviving spouses, and heads of household, the rates remain the same but the bracketing is slightly different. The first $2000 of income is taxed at 0.5%. Between $2,001 and $5,000 the rate is 1 percent over the base of $2,001 plus the $100 (0.5% of $2,000) owed from the previous bracket.

Between $5,001 and $7,500 the rate is 2% of excess over the base in addition to all the taxes owed from previous brackets. Between $7,501 and $9,800 the rate of excess is 3%. Between $9,801 and $12,200 the rate of excess above the base is 4% and between $12,201 and $15,000 it is 5%. All income above $15,001 is 5.5% above base plus all prior taxes owed.

Corporate Income Taxes:

Oklahoma has a flat corporate income tax of 6% that is levied on all businesses either located in the state or earning income from within the state.

Oklahoma also imposes a corporate franchise tax to all corporations doing business in the state. The rate is $1.25 for every $1,000 of all capital used in Oklahoma. Corporations doing business in Oklahoma but are based out of state are also subjected to a $100 per year assessment.

Oklahoma's fairly lenient corporate taxes have led to it being considered one of the more corporate friendly states in the country, which has helped spur its economic growth in the last decade.

Property Taxes:

Property taxes in Oklahoma are assessed on a county basis by a county assessor. In Oklahoma all property both in terms of real estate and personal property, is subject to property taxes. Personal property is assessed at about 10 to 15 percent of its cash value. Real property is assessed at its use value. This means that vacant or unused property may be charged as much as ten times as much as occupied property in most jurisdictions. Rates can differ from county to county.

Property tax refunds can be given to individuals who have a total income of $12,000 or less and are at least 65 years of age and/or totally disabled. There are also homestead exemptions, and additional homestead exemptions on individuals or households making less than $20,000 a year in total income.

Sales Tax:

Sales tax in Oklahoma is 4.5 percent, and unlike in many states, the tax does not exempt unprepared food (though it does exempt prescription drugs.) Nearly all cities, towns, and counties in the state also supplement the sales tax with their own sales taxes, which are usually another 3 to 4%. Typically sales taxes throughout Oklahoma are 7.5 to 8.5%.

Oklahoma also participates in the Streamlined Sales Tax Initiative. The Streamlined Sales Tax Initiative has the goal of stipulating uniform standards of item taxation and means by which states collect sales tax from businesses, since those can be distinctly different from state to state.

This is another element that makes Oklahoma appear very corporation friendly, as corporations who operate vendors in many different states must pay sales taxes in different ways depending on the state.

Oklahoma residents who live in the state year round and whose gross income is less than $20,000 annually can file for sales tax relief. Some taxpayers who can claim a dependent and are age 65 and older, or are physically disabled, but make up to $50,000 a year can also claim relief.

Tax Forms:

Oklahoma's state income tax form is called the 511 form, and it features many variations (the 511NR, for instance, is for nonresidents.) The estimated tax form is called the OW-8 (the OW-9 is for military spouses who implement a withholding tax exemption.)

Oklahoma tax form 538-S is for individuals that can claim sales tax relief/refund based on the standards listed above.

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