State of Oklahoma Flag

Oklahoma Sales Tax Guide for Businesses

Sales Tax Rate
4.5%
Local Taxes
Yes
Website
Oklahoma Tax Commission
Tax Line
405-521-3160

We wrote this guide for online sellers who want to know if they even have to bother with sales tax in Oklahoma, and if so, how best to tackle the sales tax situation in the Sooner State.

After reading this, you’ll know:

  • Do you or don’t you need to collect Oklahoma sales tax?
  • Which customers do you collect from?
  • How much do you collect?
  • What do you do with all the sales tax you’ve collected?
  • Way more than you probably ever wanted to know about Oklahoma sales tax!

Do you have sales tax nexus in Oklahoma?

Good news! You only have to begin thinking about Oklahoma sales tax if you have sales tax nexus in Oklahoma.

Sales tax nexus” is just a fancy way of saying “significant presence” in a state.

Oklahoma considers a seller to have sales tax nexus in the state if you have any of the following in the state:

  • An office or place of business
  • A salesperson, contractor, installer or other representative of the business doing business in the state
  • Goods in a warehouse, distribution center or other place of business
  • Delivery of merchandise in Oklahoma in vehicles owned by the taxpayer

You can click here to read exactly what the Oklahoma Department of Revenue (Oklahoma’s taxing authority) has to say about what constitutes sales tax nexus in Oklahoma (page 8 - “Place of Business.”) In 2016, Oklahoma passed a law attempting to declare that some out-of-state sellers with no significant presence in the state also have Oklahoma sales tax nexus. You can read more about the Oklahoma Retail Protection Act of 2016 here.

Is what you’re selling even taxable?

You’ve probably read this far because you realized you have sales tax nexus in Oklahoma. Your next step is to determine if what you’re selling is even taxable.

Services in Oklahoma are generally not taxable. So if you’re a music teacher or an electrician, you’re in luck and you don’t have to worry about sales tax. But watch out – if the service you provide includes creating or manufacturing a product for sale, you may have to deal with the sales tax on products.

Tangible products are taxable in Oklahoma , with a few exceptions, such as certain prescription medications.

So if you sell toys, then charge sales tax to your Oklahoma customers.

But if you’re a freelance blogger, don’t charge sales tax to your Oklahoma customers.

If you have sales tax nexus in Oklahoma and your products are taxable, your next step is to register for a sales tax permit.

How to Register for a Sales Tax Permit in Oklahoma

Sellers with sales tax nexus in Oklahoma must apply for an Oklahoma sales tax permit.

Don’t skip this step! Many states consider it unlawful to collect sales tax in their name without a permit. Go here for more on how to register for a sales tax permit in Oklahoma.

How to Collect Sales Tax in Oklahoma

So you’ve determined that you have sales tax nexus in Oklahoma and what you’re selling is taxable. And you’re all set and registered for your Oklahoma sales tax permit.

The next step is to determine how much sales tax to collect.

If you are based in Oklahoma and selling to a buyer with a ship to address in Oklahoma, charge sales tax based on the sales tax rate at the ship to address.

Example: You live and run your business in Muskogee, OK in the 74401 zip code. The total sales tax rate in Muskogee is 9.15%. But you make a sale to a customer in Enid, and ship the package to the 73701 zip code, where the combined total sales tax rate is 8.85%. Charge your customers 8.85% sales tax rate.

If you are not based in Oklahoma, but have sales tax nexus in Oklahoma you are considered an Oklahoma “remote seller.” This is where things get tricker, since remote sellers are required to collect “use tax,” which is similar to sales tax, but can vary slightly from Oklahoma sales tax rates. If you’re running into this problem as an online seller, no worries! Taxjar SmartCalcs will make sure you collect the right rate every time. (And if you sell on a platform like Amazon, their sales tax engine ensures you collect the right rate, too!)

You can look up your local sales tax rate with TaxJar’s Sales Tax Calculator or by going to TaxJar.com/mobile on your mobile device.

Should you collect sales tax on shipping charges in Oklahoma?

As long as you separately state the shipping charges on your bill to your customer, you do not have to charge sales tax on shipping.

But if you include shipping in the price of the product you sell the customer, then shipping is considered part of the taxable transaction and Oklahoma declares that you must collect sales tax on shipping.

Read a full explanation of sales tax on shipping in Oklahoma here.

Rank City Population County Total SalesTax
1 Oklahoma City 599,476 Oklahoma 8.38%
2 Tulsa 391,906 Tulsa 8.52%
3 Norman 110,925 Cleveland 8.25%
4 Broken Arrow 98,850 Tulsa 8.42%
5 Lawton 96,867 Comanche 9.00%
6 Edmond 81,405 Oklahoma 8.25%
7 Moore 55,081 Cleveland 8.63%
8 Midwest City 54,371 Oklahoma 8.38%
9 Enid 49,379 Garfield 8.85%
10 Stillwater 45,688 Payne 8.81%
11 Muskogee 39,223 Muskogee 9.15%
12 Bartlesville 35,750 Osage 8.75%
13 Shawnee 29,857 Pottawatomie 8.50%
14 Owasso 28,915 Rogers 9.83%
15 Ponca City 25,387 Kay 8.67%
16 Ardmore 24,283 Carter 9.25%
17 Duncan 23,431 Stephens 8.70%
18 Yukon 22,709 Canadian 8.85%
19 Del City 21,332 Oklahoma 8.38%
20 Bixby 20,884 Tulsa 9.30%

Caption: Top 20 Most Populous Cities in Oklahoma and their Sales Tax Rates

When are Oklahoma Sales Tax Returns Due?

Oklahoma sales tax returns are always due the 20th of the month following the reporting period. You’ll be assigned a sales tax filing frequency when you apply for your Oklahoma sales tax permit.

Taxpayers who owe more than $2500 per month are required to pay via EFT. Oklahoma taxpayers with such a high sales tax liability may also be put on a semi-monthly remittance schedule.

Oklahoma taxpayers who routinely owe more than $50 in a month may be assigned a monthly or a quarterly sales tax payment filing and payment schedule.

2016 Oklahoma Monthly Sales Tax Filing Due Dates

Taxable Period Due Date
January February 22, 2016*
February March 21, 2016*
March April 20, 2016
April May 20, 2016
May June 20, 2016
June July 20, 2016
July August 22, 2016*
August September 20, 2016
September October 20, 2016
October November 21, 2016*
November December 20, 2016
December January 20, 2017

2016 Oklahoma Quarterly Sales Tax Filing Due Dates

Taxable Period Due Date
Q1 (Jan - Mar) April 20, 2016
Q2 (Apr - Jun) July 20, 2016
Q3 (Jul - Sep) October 20, 2016
Q4 (Oct - Dec) January 20, 2017

2016 Oklahoma Semiannual Sales Tax Filing Due Dates

If you generally collect less than $50/month in sales tax you’ll file semi-annually in Oklahoma.

Taxable Period Due Date
Semiannual (Jan - Jun) July 20, 2016
Semiannual (Jul - Dec) January 20, 2017

* indicates a due date pushed back due to a weekend or holiday

How to File Sales Tax in Oklahoma

When it comes time to file sales tax in Oklahoma you must do three things:

  1. Calculate how much sales tax you owe
  2. File a sales tax return
  3. Make a payment

We’ll walk you through these steps.

How to Calculate How Much Sales Tax You Owe in Oklahoma

Calculating how much sales tax you should remit to the state of Oklahoma is easy with TaxJar’s Oklahoma sales tax report.

All you do is connect the channels through which you sell – including Amazon, eBay, Shopify, Square and more – and we’ll calculate exactly how much sales tax you collected. All the information you need to file your Oklahoma sales tax return will be waiting for you in TaxJar. All you have to do is login!

How to File and Pay Sales Tax in Oklahoma

You have three options for filing and paying your Oklahoma sales tax:

  • File online - File online at OK Tap. You can remit your payment through their online system.
  • File by mail - You can use form STS-20002 to file on paper and by mail. Keep in mind that filers who pay more than $2500 per month are required by Oklahoma to file online.
  • AutoFile - Let TaxJar file your sales tax for you. We take care of the payments, too. You’ll never have to worry about spreadsheets, calculations or filling out complex sales tax returns.

Other Facts You Should Know about Oklahoma Sales Tax Filing

There are a few more things you should know about sales tax in Oklahoma:

Penalties:

  • Late Filing Penalty - 25% of tax due if not filed within 10 days after written demand.
  • Late Payment Penalty - 10% of tax due if not paid within 15 days of delinquency.

Other penalties for fraud or serial offenses include higher penalties and even criminal charges.

“Zero returns”:

Oklahoma requires that any seller with a sales tax permit file a sales tax return on your due date even if you don’t have any sales tax to report or pay. Click here for a list of states that require zero sales tax returns.

Discounts:

Many states understand that collecting sales tax is a difficult burden on merchants, and will provide a discount to help alleviate some of this burden. In Oklahoma, as long as the sales tax is paid on time, a discount of 1% is available. The maximum discount is $2500 per month. Click here for more about state sales tax discounts.

Oklahoma Sales Tax Holidays

Oklahoma has a sales tax holiday in 2016:

August 5-7, 2016: Back to School Sales Tax Holiday

Check here for more information about Oklahoma’s sales tax holidays including how to handle sales tax holidays as an online seller.

And that’s it. You’ve mastered Oklahoma sales tax filing! Now that sales tax is out of the way, you can get back to what you do best – running your business.

Oklahoma Sales Tax Resources

For more about Oklahoma sales tax, check out the Oklahoma section of the TaxJar blog.

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