State & Local Taxes

With some of the lowest state and local taxes in the nation, Oklahoma is an attractive choice for businesses seeking a friendly environment to grow in or relocate to. Tax abatement and incentive opportunities are also available at the state and local levels, further decreasing the tax burden on the new and expanding businesses.

Explore the Oklahoma Business Incentive & Tax Guide for additional information tax collection and abatement.

State Taxes
Income Taxes
Corporate Income Tax Rate – 4.0% Flat Rate
Individual Income Tax Rate – 5.0% Top Rate

Franchise Taxes
Franchise Tax Rate – $1.25 for Each $1,000 of Capital Investment
Foreign Corporations are Assessed an Additional $100 per Year

Unemployment Insurance Taxes
Taxable Wage Base – $17,500
New Employer Tax Rate – 1.5%
Experienced Employer Tax Rate – 5.5%

Workers' Compensation Tax
Compensation Tax Rate – 2.77%

Local Taxes
Property Assessment and  Taxes
Real Property Assessment – 11%
Personal Property Assessment – 13%
Property Tax Rate – $81.09 per $1,000 of Assessed Value

Sales and Use Taxes
State of Oklahoma – 4.5%
Pittsburg County – 1.5%
City of McAlester – 4.0%
Total Sales Tax Rate – 10.0%

State Recognitions
#1 Lowest Tax Burden, June 2018
– Anderson Economic Group

#2 Lowest Property Taxes as a Percentage of Personal Income, April 2019
– WalletHub