Oklahoma · the numbers
Oklahoma figures at a glance, 2026
Every Oklahoma number for the 2026 return in one place: the brackets and the 4.5% rate, the standard deduction and exemptions, the retirement exclusion, the credits and their income cliffs, the 529 deduction, the filing and payment dates, and the short list of what changed from 2025. For anyone who files here, and for anyone checking a preparer’s work.
By Charles Trautman, EA, editor
Need to Know Tax · written from Oklahoma Tax Commission sources, November 3, 2026; updated November 12, 2026 after the election · not yet reviewed by an Oklahoma practitioner
Oklahoma’s numbers are few and most of them are old. The rate is the exception: 4.5% at the top for 2026, down from 4.75%, with a new 0% bracket underneath. Everything else, the $6,350 and $12,700 standard deductions, the $1,000 exemption, the $10,000 retirement exclusion, the $17,000 itemized cap, the $100,000 cliff on the child credit, the $40 Sales Tax Relief Credit, is the same figure it was last year, and most of them are the same figure they were a decade ago. Nothing on the Oklahoma return is indexed to inflation. The dates are the other thing worth knowing: April 15, 2027 for a paper return, April 20 for one filed electronically with any payment made electronically.
The rate
| Oklahoma taxable income, single or married filing separately | Joint, qualifying surviving spouse or head of household | Rate | Tax at the top of the bracket, single / joint |
|---|---|---|---|
| $0 to $3,750 | $0 to $7,500 | 0% | $0 / $0 |
| $3,750 to $4,900 | $7,500 to $9,800 | 2.5% | $28.75 / $57.50 |
| $4,900 to $7,200 | $9,800 to $14,400 | 3.5% | $109.25 / $218.50 |
| Over $7,200 | Over $14,400 | 4.5% |
Taxable income here means federal AGI after Oklahoma adjustments, the Oklahoma standard or itemized deduction, and exemptions. Cut points come from the Department’s 2026 withholding tables less the standard deduction they build in, and match the 2025 bracket lines; confirm against the final 2026 tax table. Head of household uses the joint bracket schedule but its own $9,350 standard deduction.
The shortcut: 4.5% of Oklahoma taxable income, less $215 single or $430 joint. That is all the lower brackets are worth. A $10,000 Roth conversion, a $10,000 bonus or a $10,000 capital gain costs $450 of Oklahoma tax for anyone already above the top line, and nearly everyone with a full-time job is.
Deductions and exemptions
| Item | 2025 | 2026 | Note |
|---|---|---|---|
| Starting point | Federal AGI | Federal AGI | Form 511 line 1. Below-the-line federal deductions never arrive. |
| Standard deduction, single or married filing separately | $6,350 | $6,350 | Not indexed. Must match the federal choice: federal standard means Oklahoma standard. |
| Standard deduction, head of household | $9,350 | $9,350 | |
| Standard deduction, joint or qualifying surviving spouse | $12,700 | $12,700 | |
| Itemized deduction cap | $17,000 | $17,000 | Schedule 511-D. Federal Schedule A total less state and local income or sales tax; charitable gifts and medical expenses sit outside the cap. |
| Personal exemption, per person | $1,000 | $1,000 | Taxpayer, spouse, each dependent. Worth $45 each at 4.5%. |
| Extra exemption, 65 or older | $1,000 | $1,000 | Only if federal AGI is $15,000 or less single, $25,000 joint, $12,500 married filing separately, $19,000 head of household. |
| Extra exemption, legally blind | $1,000 | $1,000 | No income limit. |
| Social Security | 100% subtracted | 100% subtracted | Schedule 511-A line A2, whatever amount is in federal AGI, at any age and income. |
| Military retirement | 100% excluded | 100% excluded | Line A4. No cap, no age test. |
| Civil Service Retirement System in lieu of Social Security | 100% excluded | 100% excluded | Line A3. FERS does not qualify. |
| Other retirement income exclusion, per person | $10,000 | $10,000 | Lines A5 (government pensions) and A6 (private pensions, 401(k), IRA, Roth conversions) share one $10,000. No age test. |
| Oklahoma 529 deduction, single / joint | $10,000 / $20,000 | $10,000 / $20,000 | Schedule 511-C line C3, Oklahoma’s own plans only; contributions through April 15 count; five-year carryforward of the excess. |
| Active-duty military pay | 100% excluded | 100% excluded | Line C1, including Reserve and Guard. |
| Oklahoma Capital Gain Deduction | 100% | 100% | Form 561. Oklahoma real or tangible property held five years; Oklahoma-headquartered company interests held two years. |
| Local income tax | None | None | No Oklahoma city or county taxes income. |
The credits
| Credit | Figure | Refundable? | Income limit |
|---|---|---|---|
| Earned income credit (line 28, Schedule 511-G, Form 511-EIC) | 5% of the federal EITC, figured under the 2020 federal rules | Yes | Federal EITC limits as of 2020; the later federal expansions for childless workers under 25 and over 64 do not carry over |
| Child care / child tax credit (line 15, Schedule 511-F) | Greater of 20% of the federal child and dependent care credit or 5% of the federal child tax credit | No | Federal AGI $100,000 or less. A cliff: $100,001 gets nothing. |
| Sales Tax Relief Credit (line 25, Form 538-S) | $40 per person on the return | Yes | Gross household income $20,000 or less; $50,000 or less with a dependent, age 65 by December 31, 2026, or a qualifying disability. Full-year residents only; no TANF during the year. |
| Property tax credit (line 24, Form 538-H) | Homestead property tax above 1% of income, up to $200 | Yes | 65 or older or totally disabled; gross household income $12,000 or less |
| Parental Choice Tax Credit (private school) | $7,500 per student at federal AGI up to $75,000; $7,000 to $150,000; $6,500 to $225,000; $6,000 to $250,000; $5,000 above | Yes, paid by check to the school | None, but the amount steps down; statewide cap $275 million for fiscal 2027 |
| Parental Choice Tax Credit (homeschool, line 29, Form 591-D) | Up to $1,000 of expenses per student | Yes | None |
| Credit for tax paid to another state (Form 511-TX) | The other state’s tax on personal-services income Oklahoma also taxes, limited to the Oklahoma tax on it | No | None. Out-of-state rental, business and farm income is removed on line 4 instead. |
| Business and other credits (Form 511-CR) | Varies; Part 2 credits under annual statewide caps | Mostly no; zero-emission electricity (Form 578) refundable at 85% | Varies |
Oklahoma has no renter’s credit, no general senior credit and no charitable credit for individuals.
Worked example: the $100,000 cliff on the child credit
A married couple with two children under 17 and $3,000 of day-care expenses compares federal AGI of $99,500 with $100,500. The federal child tax credit is $2,200 per child; the federal dependent care credit at their income is 20% of the $3,000, or $600.
| AGI $99,500 | AGI $100,500 | |
|---|---|---|
| 5% of the $4,400 federal child tax credit | $220 | $0 |
| 20% of the $600 federal dependent care credit | $120 | $0 |
| Oklahoma credit, the greater of the two | $220 | $0 |
| Oklahoma tax at 4.5% on the extra $1,000 | $45 | |
| Extra Oklahoma tax on $1,000 more income | $265 |
A $1,000 401(k) deferral or deductible IRA contribution that brings federal AGI back under $100,000 recovers the whole $220. The two percentages are compared, not added; a family takes the larger one.
Filing and payment dates
| Date | What |
|---|---|
| Friday, January 15, 2027 | Fourth 2026 estimated payment, Form OW-8-ES or OkTAP |
| Monday, March 15, 2027 | Homestead and senior valuation freeze applications due at the county assessor (property tax, not the income tax return) |
| Thursday, April 15, 2027 | Paper Form 511 and all 2026 tax due; Form 504-I extension with payment; first 2027 estimated payment. At least 90% of the tax must be paid today to avoid the 5% late-payment penalty. |
| Tuesday, April 20, 2027 | Due date for an electronically filed return, if any payment is also made electronically |
| Tuesday, June 15, 2027 | Second 2027 estimated payment |
| Wednesday, June 30, 2027 | Last day to file Form 538-S alone for the Sales Tax Relief Credit when no return is required |
| Wednesday, September 15, 2027 | Third 2027 estimated payment |
| Friday, October 15, 2027 | Extended due date for the 2026 Form 511 |
Estimated payments are required when the expected tax after withholding is $500 or more and withholding will be less than the smaller of 70% of this year’s tax or 100% of last year’s. Underpayment interest runs at 20% a year, but none is charged if the tax shown on the return is under $1,000. Farmers with two-thirds of gross income from farming are exempt. Late payment draws a 5% penalty when less than 90% is paid by April 15, and interest at 1.25% a month from the due date whether or not the penalty applies.
Beyond the income tax
| Item | 2026 |
|---|---|
| State sales tax | 4.5%, plus city and county rates; combined rates commonly 8% to 10% |
| Grocery sales tax | State 4.5% removed August 29, 2024; local rates still apply |
| Use tax on untaxed out-of-state purchases | Form 511 line 19; the table rate is 0.056% of federal AGI at $54,670 and above if actual purchases are not tracked |
| Homestead exemption (property tax) | $1,000 off assessed value; a second $1,000 when gross household income is $30,000 or less |
| Senior valuation freeze, 65 and older | Taxable value frozen when household income is at or below the county median income; the limit varies by county |
| Annual cap on growth in taxable value | 3% homestead and agricultural, 5% other; voters rejected State Question 847 on November 3, 2026, which would have lowered these to 1.75% and 4% |
| Estate and inheritance tax | None |
| Reciprocal states for wages | None |
What changed from 2025
Top rate 4.75% to 4.5%. House Bill 2764 (2025), effective tax year 2026. The three lowest brackets, 0.25%, 0.75% and 1.75%, became one 0% bracket on the first $3,750 single, $7,500 joint, and the 2.75% and 3.75% brackets became 2.5% and 3.5%. The 2026 Form 511 tax tables are revised to match.
The trigger did not fire. The same law cuts the top rate a further 0.25 point whenever a December revenue test is passed, with the cut taking effect two tax years later. The December 2025 test fell about $1 billion short, so the rate stays 4.5% for 2027. See What’s new in Oklahoma for 2026.
Parental Choice Tax Credit cap, $250 million to $275 million, beginning fiscal 2027 (House Bill 3705, 2026). Per-student amounts unchanged.
New Form 511-CR credits for firefighter cancer screening, qualified civil engineering employees and employers, and faculty preceptors; Form 511-CR now has a Part 1 and a capped Part 2.
New Schedule 511-A line A16 for cash invested in an eligible Oklahoma venture capital company, up to $25 million per investor (House Bill 4028, 2026) (verify).
No conformity bill. The federal deductions for tips, overtime, seniors and car-loan interest are below the line and do not reach Form 511; Oklahoma passed nothing to match them.
Unchanged: every deduction, exemption, exclusion, cap, credit percentage and income limit in the tables above.
Behind the scenes: why nothing is indexed
The $6,350 and $12,700 standard deductions match the federal figures of 2017 and have not moved since, while the federal figures have more than doubled. The $1,000 exemption and the $10,000 retirement exclusion are older still. The Legislature has spent its tax-cutting room on the rate, where the political credit is, rather than on the deductions, where the arithmetic for a modest household is. The result is a tax that reaches further down the income scale each year without anyone voting to make it so. With the new 0% bracket, a single filer with no dependents starts owing Oklahoma tax at about $11,100 of federal AGI; a couple at about $22,200.
What to bring
- Last year’s Form 511, to compare line by line
- Every W-2 and 1099 with Oklahoma withholding
- Forms 1099-R and SSA-1099, so the Social Security subtraction and the $10,000 exclusion are claimed in full
- Oklahoma 529 contribution statements, including any made by April 15, 2027 for 2026
- Day-care receipts with the provider’s tax number, for the 20% alternative on Schedule 511-F
- Closing statements for Oklahoma property or business interests sold, with purchase dates, for Form 561
- Estimated payment confirmations from OkTAP, with dates
Questions people ask
What is the Oklahoma income tax rate for 2026?
4.5% at the top, starting at $7,200 of Oklahoma taxable income single and $14,400 joint or head of household. Below that the rates are 0%, 2.5% and 3.5%, which together are worth about $215 single or $430 joint compared with a flat 4.5%.
What is the Oklahoma standard deduction for 2026?
$6,350 single or married filing separately, $9,350 head of household, $12,700 joint or qualifying surviving spouse, plus $1,000 for each person on the return. You must take the standard deduction in Oklahoma if you took it federally, and itemize in Oklahoma if you itemized federally.
How much retirement income is tax-free in Oklahoma?
All Social Security, all military retirement, all Civil Service Retirement System benefits received in lieu of Social Security, and all Railroad Retirement. Every other pension, 401(k), IRA or Roth conversion is excluded up to $10,000 per person per year, with no age requirement.
Is the Oklahoma child tax credit refundable?
No. It is the greater of 5% of the federal child tax credit or 20% of the federal dependent care credit, nonrefundable, and only for federal AGI of $100,000 or less. The Oklahoma earned income credit, 5% of the federal credit, is refundable.
When is the Oklahoma return due?
April 15, 2027 on paper. April 20, 2027 if the return is filed electronically and any payment is also made electronically. Tax paid after April 15 draws interest at 1.25% a month from April 15 either way (verify whether interest runs from the 15th or the 20th on an e-filed return).
Did Oklahoma adopt the federal deductions for tips and overtime?
No. Both are taxed by Oklahoma at up to 4.5%, as is the income the federal $6,000 senior deduction removes. These deductions come off after federal AGI, which is where Oklahoma begins.
One rate that matters, a short list of old numbers
Take 4.5% of income above the standard deduction and exemptions, subtract the $10,000 retirement exclusion if it applies, and check the $100,000 child-credit cliff.
Written by Charles Trautman, EA, editor · Need to Know Tax, Lone Tree, Colorado
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Forms and official pages named in this article
- 2026 Form 511 packet (draft), with Schedules 511-A through 511-I, Form 511-EIC and instructions
- 2026 Form 561, Oklahoma Capital Gain Deduction
- Form 538-S, Sales Tax Relief Credit (2019 edition, $40 per person)
- Oklahoma Tax Commission forms page (Forms 538-H, 511-TX, 511-CR, 591-D, OW-8-ES, 504-I)
- Parental Choice Tax Credit, how it works
Sources and where to check
- Oklahoma Tax Commission: 2026 Form 511 packet (draft for software developers)
- Oklahoma 2026 withholding tables, as reproduced in the USDA National Finance Center bulletin (March 2026)
- Oklahoma Tax Commission: Pay taxes, estimated payments, penalty and interest
- Oklahoma Senate: HB 2764 summary, May 2025
- KOSU: December 22, 2025 Board of Equalization result
- Oklahoma House: HB 3705, Parental Choice Tax Credit cap
- Oklahoma Policy Institute: State Question 847