How Oklahoma Taxes Compare
Oklahomans pay $1,110 per person, or 24 percent, less in taxes than the national average. By most measures, Oklahoma’s taxes are lower than most Americans’. For example, Oklahoma state and local taxes were $3,495 per person in 2013, compared to the national average of $4,604. This gap grew by $118 per person from 2008 to 2013. According to U.S. Census data and the Tax Policy Center, Oklahomans’ taxes rank 42nd in the nation per person and 47th as a share of personal income in 2013.
Most Oklahoma taxes are lower than other states’. This figure shows that Oklahoma collects less per person than the national average.
- Individual income taxes are $313 per person less than the national average and corporate income taxes are $16 per person less than average.
- We rely more on the sales tax than many states; Oklahoma general sales taxes are $137 per person higher than the national average.
- Property taxes are dramatically lower in Oklahoma than elsewhere. Our average tax collected of $596 per person in 2013 was less than half the national average of $1,441.
- Oklahoma selective sales taxes, which apply to purchase of specific items like vehicles and cigarettes, are $140 per person lower than the national average.
- For taxes categorized as ‘other taxes’, Oklahomans pay on average $67 more than the national average due to the importance of the severance tax as a revenue source in Oklahoma.
In most taxes, we rank in the middle or bottom of the states, when measuring taxes collected per person. The rankings listed above show that in Oklahoma:
- Property taxes and selective sales taxes (on fuel, tires, tobacco, and alcohol, among other items) are among the lowest in the nation
- Personal income taxes rank right around the bottom third of state..
- The general sales tax and the corporate income tax place Oklahoma in the top half of states.
- Oklahoma ranks high on “Other taxes” because of revenue from severance taxes on oil and gas and because of relatively high taxes on motor vehicles.