As an e-commerce seller, you will need to collect sales tax in Oklahoma if you have:
(1) $100,000 or more in taxable sales of products during the previous or current calendar year (economic nexus), or
(2) physical presence in Oklahoma (physical nexus).
Below, we will highlight some of the basic provisions of Oklahoma sales tax law.
- What is the tax rate range for Oklahoma?
- State: Oklahoma’s general sales tax rate is 4.5%.
- Local: Oklahoma localities impose their own sales tax at rates ranging from 0% to 6.5%. Sales and Use Tax Rate Locator
- Do you have physical or economic nexus in Oklahoma?
- Physical nexus. Certain business activities create physical nexus in Oklahoma. If you have physical nexus, you are required to collect and remit sales tax on all sales that are shipped to Oklahoma. Examples of business activities that can create physical nexus in Oklahoma include:
- Owing or using an office, distribution house, sales house, warehouse, or other physical place of business, or
- having agents operating in Ohio, whether temporarily or permanently or whether or not the agent is authorized to do business in Ohio
- the presence of any person that has substantial nexus in Ohio and that:
- sells a similar line of products as the vendor under the same or a similar business name,
- uses trademarks, service marks or trade names in Ohio that are similar to those used by the vendor,
- installs, assembles or performs maintenance services for the vendor,
- for other than common carriers, delivers or facilitates the vendor's delivery of property to customers in Ohio by allowing the vendor's customers to pick up property sold by the vendor at an office, distribution facility, warehouse, storage place or similar place of business maintained by the person in Ohio, or
- conducts any other activities in Ohio that are significantly associated with the vendor's ability to establish and maintain a market in Ohio for the vendor's sale.
- Economic nexus for remote sellers. Remote sellers 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. Additional information:
- Remote sellers must collect and remit tax on the first calendar month succeeding the month when the threshold is met.
- Sales in Ohio 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 for marketplace facilitators. A marketplace facilitator that had 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 OTC to either collect and remit the tax or to comply with certain notice and reporting requirements.
68 O.S. 1392 - Election Requirements - Sales and Use Tax - Remote Seller, Marketplace Facilitator, or Referrer
- What are examples of sales of taxable items?
- Tangible personal property, unless an exemption applies
- Certain services
- Leases and rentals of tangible personal property
- What are examples of sales of nontaxable/exempt items?
- Prescription drugs
- Certain agricultural items
- Digital goods
- Software as a Service (SaaS)
- Are there any 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 Oklahoma Sales Tax Holiday
- Is Oklahoma a member of the SST (Streamlined Sales Tax)?
- Currently, Oklahoma is a full member of the Streamlined Sales Tax Governing Board (SSTGB).
- How to get a sales tax permit / links to register in Oklahoma?
- You can register online at: