Oklahoma consolidated six brackets into three on 1 January 2026 and cut the top rate to 4.5%. The same legislation set out a mechanism to eliminate the income tax entirely, a quarter point at a time.
| Gross pay | — |
| Federal income tax | — |
| Social Security6.2% up to $184,500 | — |
| Medicare1.45%, no cap | — |
| State income tax | — |
| 401(k) contribution | — |
| Health and HSA | — |
Useful if you are comparing a job that pays monthly against one that pays every two weeks, or working out what a raise is worth per paycheck.
| Pay schedule | Gross | Take-home |
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House Bill 2764 collapsed Oklahoma's six individual income tax brackets into three — 2.5%, 3.5% and 4.5% — and reduced the top rate from 4.75%. The first $3,750 of taxable income for a single filer is untaxed, and the top rate arrives at $7,200.
As with several southern states, the practical effect is a flat tax with a small zero band. Above $7,200 of taxable income there is no further progression, and $7,200 is a low threshold once the $6,350 standard deduction is accounted for.
The same law established a trigger mechanism to reduce the rate by 0.25 percentage points whenever specified revenue conditions are met, with the stated intent of phasing the individual income tax out altogether. Oklahoma has joined the group of states — with Mississippi and, in a different form, Indiana — openly pursuing elimination rather than merely reduction.
Oklahoma does not adjust its bracket thresholds for inflation, and the new three-bracket structure carries that forward. Over time, wage growth alone pushes more income into the top band without any legislative change — the phenomenon known as bracket creep.
Given how low the thresholds already are, this matters less in Oklahoma than it would in a state with meaningful progressivity. Nearly everyone is already in the top bracket, so there is little room left to creep into. But it does mean any future rate reductions are partly offset by an eroding base.
The standard deduction is $6,350 for a single filer and $12,700 for a couple, with a personal exemption of $1,000 each including dependents.
Those are middling figures — well above Oregon's or Alabama's, well below the federal-conforming deductions in Colorado, Missouri or Montana. Combined with the low bracket thresholds, they place Oklahoma's effective rate for a typical salary somewhere around 3.5% of gross.
No Oklahoma municipality levies an income tax, so the state figure is the complete picture.
Social Security is exempt. Oklahoma also allows an exclusion for other retirement income up to a capped amount per person, covering pensions and retirement account withdrawals, and exempts military retirement income in full.
Between those provisions and the low rates, Oklahoma is competitive with Texas for retirees despite levying an income tax at all — though Texas's total absence of one remains simpler.
Yes. Six brackets were collapsed into three — 2.5%, 3.5% and 4.5% — and the top rate fell from 4.75%, effective 1 January 2026.
The 2026 legislation established a trigger mechanism to cut the rate by 0.25 points whenever revenue conditions are met, with elimination as the stated goal. Whether it gets there depends on revenue performance.
At $7,200 of taxable income for a single filer, so effectively all of a normal salary once the standard deduction is applied.
No. Military retirement income is fully exempt, and other retirement income receives a capped exclusion.