Franchise Tax

Oklahoma levies a franchise tax on all corporations or associations doing business in the state. Corporations are 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 are assessed an additional $100 per year). While all corporations must file a report with the Secretary of State, those with tax liability below $250 are exempt from paying the tax.

The state collected $52.4 million from the franchise tax in FY 2020. Prior to 2013, the tax was suspended for several years and companies instead paid a Business Activity Tax.