Oklahoma Tax Calculator 2025
Calculate your Oklahoma state income tax with our comprehensive 2025 calculator featuring the Sooner State's progressive tax rates from 0.25% to 5%, energy industry advantages, and advanced tax planning tools for Oklahoma's diverse oil, gas, and agricultural economy.
Calculate Your Oklahoma Tax
Enter your income information to calculate Oklahoma's progressive state income tax with rates ranging from 0.25% to 5% plus applicable deductions and Sooner State considerations.
Oklahoma Tax Structure 2025
Oklahoma operates a progressive income tax system with rates ranging from 0.25% to 5%, making it competitive in the South Central region. The Sooner State provides excellent benefits for retirees, military veterans, and energy sector workers.
OK Progressive Tax Brackets (2025)
- 0.25% on income up to $1,000
- 0.75% on income $1,001-$2,500
- 1.75% on income $2,501-$3,750
- 2.75% on income $3,751-$4,900
- 3.25% on income $4,901-$7,200
- 5% on income over $7,200
Standard Deductions (2025)
- Single: $6,350
- Married Filing Jointly: $12,700
- Married Filing Separately: $6,350
- Head of Household: $9,350
Oklahoma Tax Benefits and Sooner State Advantages
Oklahoma provides exceptional tax benefits, particularly for retirees, military veterans, and energy sector workers. The state's central location and energy-rich economy make it attractive for both individuals and businesses.
- Personal Exemption: $1,000 per taxpayer and qualifying dependent
- Military Retirement Exemption: Full exemption for military retirement pay
- Retirement Income Deduction: Up to $10,000 deduction for taxpayers 65+
- Social Security Exempt: Social Security benefits are not subject to OK tax
- Oil & Gas Depletion: Percentage depletion allowances for energy production
- Agricultural Benefits: Special treatment for farm income and equipment
- Business-Friendly: Competitive corporate rates and incentives
Oklahoma Residency and Energy Sector Tax Planning
Understanding Oklahoma residency requirements and energy sector tax planning strategies is important given the state's oil and gas economy and agricultural heritage.
Establishing OK Residency
Oklahoma considers you a resident if you are domiciled in Oklahoma or you maintain a permanent place of abode in Oklahoma and spend more than 183 days in the state during the tax year.
Energy Sector Tax Benefits
Oklahoma's energy industry benefits from percentage depletion allowances, intangible drilling cost deductions, and various oil and gas production incentives that can significantly reduce tax liability.
Agricultural Tax Advantages
Oklahoma's agricultural economy benefits from special property tax treatment for agricultural land, sales tax exemptions for farm equipment, and various agricultural income deductions.
Retirement Planning
Oklahoma is retirement-friendly with no tax on Social Security, military retirement pay exemption, and significant retirement income deductions making it attractive for retirement planning.
Frequently Asked Questions
What are Oklahoma's income tax rates for 2025?
Oklahoma has progressive income tax rates ranging from 0.25% to 5% for 2025. The rates increase across five brackets, with the top rate of 5% applying to income over $7,200 for all filing statuses.
Is Oklahoma tax-friendly for retirees?
Yes, Oklahoma is retirement-friendly with no tax on Social Security benefits, military retirement pay exemption, and retirement income deductions for taxpayers 65 and older up to $10,000 annually.
What is Oklahoma's sales tax rate?
Oklahoma has a state sales tax rate of 4.5%, with local jurisdictions able to add additional sales tax, resulting in combined rates typically ranging from 4.5% to 11.5% depending on location.
Does Oklahoma tax oil and gas income?
Oklahoma taxes oil and gas income as ordinary income at the same progressive rates (0.25%-5%), but provides depletion allowances and special deductions for qualifying energy exploration and production activities.
What deductions are available for Oklahoma taxpayers?
Oklahoma offers standard deductions, personal exemptions, retirement income deductions, oil and gas depletion allowances, agricultural deductions, and various business deductions for qualifying activities.
How does Oklahoma compare to neighboring states for taxes?
Oklahoma has competitive tax rates compared to neighboring states. It's similar to Kansas and Arkansas but higher than Texas's no income tax policy and generally lower than many other states for most income levels.