2024 Guide to Sales Tax in Oklahoma City, Oklahoma

What is the Sales Tax in Oklahoma City?

Oklahoma City has a combined sales tax rate of 8.625%. The breakdown is as follows:

• The Oklahoma state sales tax rate: 4.50%
• County sales tax rate: 0.00%
• Oklahoma City sales tax rate: 4.125%
• Special sales tax rates: 0.00%

What is the Sales Tax Rate in Oklahoma?

The state of Oklahoma imposes a sales tax rate of 4.50%, which is added to the city rate. This makes the total sales tax rate in Oklahoma City 8.625%.

Tax Rates in Oklahoma City, Oklahoma

Curious about the variation in sales tax rates in Oklahoma City? Here’s a breakdown of the sales tax rates for the top 10 zip codes in Oklahoma City:

Other Tax Rates for Oklahoma City

In addition to the main tax rates, here are some other tax rates that might apply to your business in Oklahoma City:

What Items are Taxable in Oklahoma City?

In Oklahoma, not all items are subject to sales tax. For example, certain groceries and medical products may be exempt. To ensure you’re charging the correct tax, consider adding a Tax Information Code (TIC) to each item you sell. A TIC is a unique identifier that categorizes goods or services.

Here are some examples of taxable items in Oklahoma City:

What Items are Exempt from Taxes in Oklahoma City?

Oklahoma exempts several items from sales tax to encourage their purchase or because they are deemed essential. To avoid mistakenly charging tax on exempt items, apply a Tax Information Code (TIC) to each of these products.

Here is a list of some tax-exempt items in Oklahoma City:

Who Needs to Collect Sales Tax in Oklahoma City?

Businesses must collect sales tax in Oklahoma City if they have either a physical presence (nexus) or an economic nexus in Oklahoma.

What is Physical Nexus in Oklahoma?

Physical nexus in Oklahoma means that your business has some kind of physical presence in the state. This can include having an office, warehouse, employees, or a significant amount of inventory within the state.

What is Economic Nexus in Oklahoma?

If your business doesn’t have a physical presence in Oklahoma, you can still be required to collect sales tax if you exceed the economic nexus threshold. This is defined as making $100,000 in sales or 200 transactions in the state within a year.

How you qualify for economic nexus in Oklahoma (full details):

• Count all sales into Oklahoma, including wholesale transactions, toward your $100,000 sales threshold or 200 transactions.
• Sales made through a marketplace where the facilitator collects tax on your behalf do not count toward the threshold.
• Once you reach the threshold, you must register for sales tax in Oklahoma and begin collecting and remitting the appropriate taxes.

How to Get a Sales Tax Permit in Oklahoma City?

If your business meets the physical or economic nexus criteria, you’ll need to obtain a sales tax permit in Oklahoma. This process is simple and free.

Here are the steps:

1. Visit the Oklahoma Tax Commission website.
2. Complete the online registration form with details about your business.
3. The system will identify the necessary permits and register you for them.
4. You’re all set!

For more information, refer to the Oklahoma Tax Commission’s Sales Tax website.

How Do You Charge the Right Amount for Sales Tax in Oklahoma City?

Ensuring you charge the correct sales tax in Oklahoma City can be challenging due to potential rate changes and differing rates across regions. Here’s how to stay compliant:

1. Manually update rates: Keep track of changes by regularly checking the Oklahoma Tax Commission’s website. This approach requires updating your ecommerce platform frequently to ensure accurate tax rates.
2. Use sales tax software: Automate the process with sales tax compliance software like TaxCloud. These tools update rates automatically across all jurisdictions, saving you time and reducing errors.

How Do You File and Remit Sales Tax in Oklahoma City?

Do you need to file sales tax returns specifically for the city of Oklahoma City? No, you don’t. If you have sales tax nexus in Oklahoma, you collect sales taxes from across the state and file a single state-wide return. The Oklahoma Tax Commission will process the returns.

If filing Oklahoma sales taxes is time-consuming for you, TaxCloud can help. Our platform automates the entire sales tax management process, from tracking nexus and registering for sales tax to filing returns. With TaxCloud, you can focus on growing your business while we handle your sales tax compliance.

Learn how TaxCloud can simplify sales tax for your business.