Franchise Tax

Until the end of 2023, Oklahoma levied a franchise tax on all corporations or associations doing business in the state. Corporations were taxed $1.25 for each $1,000 of capital invested or otherwise used in Oklahoma up to a maximum levy of $20,000 (foreign corporations were assessed an additional $100 per year). While all corporations were required to file a report with the Secretary of State, those with tax liability below $250 were exempt from paying the tax. In 2023, the Oklahoma Legislature passed HB 1039 repealing the franchise tax beginning for tax year 2024.

The state collected $55.2 million from the franchise tax in FY 2023, accounting for roughly 0.5 percent of total state tax revenue. Prior to 2013, the tax was suspended for several years and companies instead paid a Business Activity Tax.