Oklahoma Wage and Payroll Tax Facts

October 24, 2023

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:

The below information was last updated October 20, 2023. 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

$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]
2023 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 $36.63 + 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 - $24,900 $134.50 + 3.75% of excess over $22,500
$24,900 or greater $224.50 + 4.75% of excess over $24,900

 

Additional Oklahoma SIT Details

Supplemental Withholding Computation

4.75%

Valid Filing Statuses

  • S = Single
  • M = Married

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

$27,500

Employee Subject to Tax

No

Rates for Experienced Employers

0.30% - 9.20%

Rates for New Employers

1.50%

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)

The state of Oklahoma doesn’t require employers to collect tax for paid sick leave, nor does the state have a program providing paid sick 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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