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Does Oklahoma charge sales tax on services?

by Sarah Craig March 1, 2024

The majority of U.S. states require merchants to charge sales tax on tangible personal property (TPP), otherwise known as physical goods. Many states also implement sales and use tax on digital goods and SaaS. Because the economy has shifted over time from a manufacturing economy to a service economy, states are now looking to generate revenue by taxing services.

Here’s what merchants need to know about taxing services in the state of Oklahoma, which has a state sales tax rate of 4.5%.

Does Oklahoma charge sales tax on services?

Oklahoma charges sales tax on multiple services: 

  • Natural or artificial gas, electricity, ice, steam, or any other utility or public service, except water, sewage and refuse. 
  • Transportation for hire to persons by common carriers, including railroads both steam and electric, motor transportation companies, pullman car companies, airlines, and other means of transportation for hire.
  • Intrastate, interstate and international telecommunications services sourced to Oklahoma.
  • Telecommunications non-recurring charges, which means an amount billed for the installation, connection, change or initiation of telecommunications services received by a customer.
  • Printing or printed matter of all types, kinds, or character and, except for services of printing, copying or photocopying performed by a privately owned scientific and educational library.
  • Service of furnishing rooms by hotel, apartment hotel, public rooming house, motel, public lodging house, or tourist camp.
  • Service of furnishing storage or parking privileges by auto hotels or parking lots.
  • Advertising of all kinds, types, and characters, including any and all devices used for advertising purposes.
  • Dues or fees to clubs, including any fees paid for the use of facilities or services rendered at a health spa or club or any similar facility or business.
  • Tickets for admission to places of amusement, sports, entertainment, exhibition, display, or other recreational events or activities.
  • Charges made for the privilege of entering or engaging in any kind of activity, such as tennis, racquetball, or handball, when spectators are charged no admission fee.

Please keep in mind that this is a guideline, and you should consult with a sales tax professional to determine if the services your business provides should be subject to state sales tax. For an in-depth look at Oklahoma sales tax, TaxJar’s guide to sales tax in Oklahoma and the Oklahoma Tax Commission has more details.

How to stay compliant with sales tax when you sell services

Managing all the moving parts of sales tax can be challenging. Are accounting services taxed? What about hair care or car maintenance? They may not be taxed in your state today, but sales tax laws change all the time. TaxJar makes it easier for you to stay current with it all, especially as you scale your business across states.

If you need to charge sales tax on services, TaxJar takes all of these state laws into account and makes your job simple. To learn more about TaxJar and get started automating your sales tax compliance, start a free, 30-day trial today.

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