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 $53.5 million from the franchise tax in FY 2021, 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.