Oklahoma Wage and Payroll Tax Facts
February 02, 2024
Having to comply with unique state taxes and wage laws can make processing payroll doubly daunting. Here’s everything you need to know about these rates and laws for the state of Oklahoma.
Oklahoma matches the overall minimum wage rate required by the federal government in the Fair Labor Standards Act (FLSA). Unlike the FLSA, however, Oklahoma splits that overall rate evenly for tipped wages and tip credits.
When it comes to processing payroll, Oklahoma-based organizations must handle the following taxes in addition to those required by the federal government:
- Personal Income (a.k.a. State Income Tax)
- State Unemployment Insurance (SUI)
The below information was last updated January 31, 2024. It is not intended as legal or tax advice.
Oklahoma Minimum Wage Rates
|
Wage Type |
Oklahoma Rates |
Federal Rates |
|
Minimum Wage |
$7.25 |
$7.25 |
|
Tipped Minimum Wage |
$3.625 |
$2.13 |
|
Actual Tip Credit |
$3.625 |
$5.12 |
Oklahoma State Income Tax (SIT) Rates
Oklahoma's SIT is progress, meaning it adjusts based on the income level of the employee paying the tax:
| Filing Status | Income Tax Bracket [Over X] - [But not over Y] |
2024 Income Tax Rate |
| Single | $0 - $6,350 | $0 |
| $6,350 - $7,350 | 0.25% of excess over $6,350 | |
| $7,350 - $8,850 | $2.50 + 0.75% of excess over $7,350 | |
| $8,850 - $10,100 | $13.75 + 1.75% of excess over $8,850 | |
| $10,100 - $11,250 | $35.63 + 2.75% of excess over $10,100 | |
| $11,250 - $13,550 | $67.25 + 3.75% of excess over $11,250 | |
| $13,550 or greater | $153.50 + 4.75% of excess over $13,550 | |
| Married | $0 - $12,700 | $0 |
| $12,700 - $14,700 | 0.25% of excess over $12,700 | |
| $14,700 - $17,700 | $5.00 + 0.75% of excess over $14,700 | |
| $17,700 - $20,200 | $27.50 + 1.75% of excess over $17,700 | |
| $20,200 - $22,500 | $71.25 +2.75% of excess over $20,200 | |
| $22,500 - $27,100 | $134.50 + 3.75% of excess over $22,500 | |
| $27,100 or greater | $307.00 + 4.75% of excess over $27,100 |
|
Additional Oklahoma SIT Details |
|
|
Supplemental Withholding Computation |
4.75% |
|
Valid Filing Statuses |
|
|
Exemptions |
Number of allowances |
|
Form W-4 |
Form OK-W-4 |
|
Reconciliation Frequency |
Annual |
Oklahoma State Unemployment Insurance (SUI) Rates
SUI provides unemployment benefits to eligible workers who are unemployed through no fault of their own (as determined by state law) and meet the state’s eligibility requirements.
|
Oklahoma SUI Tax Details |
|
|
Taxable Wage Base |
$27,000 |
|
Employee Subject to Tax |
No |
|
Rates for Experienced Employers |
0.3% - 9.2% |
|
Rates for New Employers |
1.5% |
|
Effective Period |
Calendar Year |
|
Voluntary Contributions Allowed |
No |
Oklahoma State Disability Insurance (SDI) Rates
SDI benefits are funded by employees through mandatory payroll deductions from each paycheck. Oklahoma, however, doesn't require employers to collect an SDI tax.
Miscellaneous Oklahoma Tax Information
Reciprocal Agreement(s)
Reciprocal agreements are when workers who live and work in different states are only required to pay taxes to the state where they live. Oklahoma currently has no reciprocal agreements with any other states.
This doesn't mean, however, that interstate workers living in Oklahoma pay double. It’s federally illegal for two states to tax the same income. In most cases, the employee’s work state will credit or refund them at tax time based on the taxes they owe their home state. If the tax rates differ, the employee must cover the difference.
Paid Sick Leave (PSL) Taxes
The state of Oklahoma doesn't require employers to collect PSL taxes, nor does the state have a program providing such leave to employees.
Paid Family and Medical Leave (PFML) Taxes
The state of Oklahoma doesn't require employers to collect PFML taxes, nor does the state have a program providing such leave to employees.
Oklahoma Employer Registration
The agencies below can help with your state-based employer registration, including best practices, account numbers, and unemployment information. Contact the state's Tax Commission for withholding tax topics and the Employment Security Commission for unemployment tax topics.
|
Registration Details |
Tax Commission |
Employment Security Commission |
|
Phone |
(405) 521-3160 | (405) 557-5330 |
|
Online Registration |
OKTAP Homepage | OESC Create User Account |
|
Registration Form |
N/A | Application for UI Tax Account Number |
|
Registration Instructions |
Online registration is required. Account numbers will be issued in 5-7 days. | Online and paper registration options are available. Account numbers will be issued within 24 hours via the online process or in 7-10 days via mail. |
|
Employer Self-Service Login |
OKTAP Homepage | OESC User Login Portal |
Additional Oklahoma Payroll Tax Resources
This information is provided as a courtesy and may be updated at any time. It is not intended as legal or tax guidance. If you have questions or concerns, we encourage you to seek the advice of a qualified CPA, tax attorney, or advisor.
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