2024 Guide to State Sales Tax in Oklahoma

When do I need to collect sales tax in Oklahoma?

Your business needs to collect sales tax sales if you have:

• $100,000 or more in taxable sales of products during the previous or current calendar year (economic nexus) OR
• Physical nexus (aka physical presence) in Oklahoma.

What is considered a taxable item?

In Oklahoma, tangible goods and some services are taxable.

Here are a few examples of tangible goods:

• Personal property, unless an exemption applies
• Clothing
• Food
• Leases and rentals of tangible personal property

What is considered a non-taxable or exempt item?

These are a few examples of non-taxable and exempt items in Oklahoma:

• Prescription drugs
• Certain agricultural items
• Digital goods
• Software as a Service (SaaS)

What is the sales tax rate for Oklahoma?

Oklahoma’s sales tax rates vary by jurisdiction in addition to the general rate.

Below are ranges but you can use Oklahoma’s Sales and Use Tax Rate Locator to search by specific municipality and county.

• Oklahoma State Sales Tax Rate: Oklahoma’s general sales tax rate is 4.5%.
• Oklahoma State Sales Tax Rate by Jurisdiction: Oklahoma localities impose their own sales tax at rates ranging from 0% to 6.5%.

Physical nexus in Oklahoma

You are required to collect and remit sales tax on all sales that are shipped to Oklahoma if you have physical nexus in Oklahoma (68 O.S. 1352(13).

Examples of business activities that can qualify as physical nexus in Oklahoma include:

• Owing or using an office, distribution house, sales house, warehouse, or other physical place of business.
• Having employees, contractors, agents or otherwise operating in Oklahoma, whether temporarily or permanently or whether or not the agent is authorized to do business in Oklahoma.
• Ownership of a stock of goods in the hands of a distributor or other non-employee representative in Oklahoma, if used to fill orders for the owner’s account.
• Delivery of merchandise in Oklahoma.

Economic nexus requirements for remote sellers in Oklahoma

Remote sellers in Oklahoma that have $100,000 or more in taxable sales of products during the previous or current calendar year must collect and remit Oklahoma sales and use tax on taxable sales. Remote sellers must collect and remit tax on the first calendar month succeeding the month when the threshold is met.

Sales in Oklahoma by a remote seller made through a marketplace where the tax is collected and remitted by the marketplace facilitator are not included in determining whether the remote seller has met the threshold amount.

Economic nexus requirements for marketplace facilitators in Oklahoma

A marketplace facilitator that has aggregate sales of products in Oklahoma or delivered to locations in Oklahoma subject to sales or use tax worth at least $10,000 during the immediately preceding 12 month period must file an election with the Oklahoma Tax Commission to either collect and remit the tax or to comply with certain notice and reporting requirements.

What are Oklahoma’s sales tax holidays?

Currently, Oklahoma has a sales tax holiday on the first Friday, Saturday, and Sunday in August for clothing or footwear that is less than $100.

See the Oklahoma Sales Tax Holiday Guide for more details.

Is Oklahoma a Streamlined Sales Tax (SST) member?

Yes, Oklahoma is a full member of the Streamlined Sales Tax Governing Board (SSTGB). Visit the SST website for more information.

How do I register for a sales tax permit in Oklahoma?

There are a few options for obtaining a sales tax permit in Oklahoma.

You can register yourself on the following sites:

• Streamlined Sales Tax Registration System
• Oklahoma Tax Commission

Have TaxCloud register on your behalf so you can focus on your business. Get in touch with our team here to find out more.