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Oklahoma Consumer Tax Laws

Taxes, including those on consumer items, raise revenue for the state. Consumers in Oklahoma must pay sales tax on items bought in the state. In addition, some items have “vice taxes” that both raise revenue and attempt to limit the item’s consumption. Cigarette, liquor, and gas taxes generally fall in this category. For more information, see the State Tax Laws section.

Taxing Out-of-State Goods

Generally, states aren’t able to tax items purchased in or imported from another state because only the federal government has the power to regulate commerce between two states, a constitutional principle. This doesn’t mean that you can avoid state sales tax simply by purchasing expensive items, like cars, in states with no sales tax, such as Montana or Oregon. If you do purchase a car in another state, you’ll have to pay taxes on it once you title the vehicle in Oklahoma. This discourages residents from spending too much of their money on big-ticket items outside of Oklahoma.

Items Purchased Online

Just because you bought something online doesn’t mean you don’t have to pay sales tax on it. Typically, if the business has a physical presence in the state where an item is purchased from/shipped to, the seller must collect the sales tax from the buyer. If not, the seller doesn’t have to collect the sales tax. If you’re buying online internationally, know that the tax rules on those purchases differ greatly. Consult a tax expert for more information.

The following chart lists the main consumer tax laws and applicable tax rates in Oklahoma.

Sales Tax Oklahoma’s sales tax rate is 4.5%. Note that your city or county probably also charges a sales tax, the rate of which you can check on the Oklahoma Tax Commission website.
Use Tax The use or excise tax in Oklahoma is the same as the sales tax at 4.5%.
Cigarette Tax The cigarette tax in Oklahoma is approximately $1.03 per pack.
Gasoline Tax The gas tax is $.16 per gallon and $.13 per gallon for diesel. Natural gas is taxed at $.05 per gasoline or diesel gallon equivalent (whether compressed or liquefied).
Liquor Tax The Oklahoma alcohol beverage tax rates depends on the type of alcohol and, sometimes, the amount of alcohol:
  • Beer containing less than 3.2% alcohol is taxed at $11.25 per barrel (containing no more than 31 wine gallons)
  • Beer with more than 3.2% alcohol content is taxed at $12.50 per barrel
  • Wine with less than 14% alcohol is taxed at $.19 per liter
  • Wine with more than 14% alcohol is taxed at $.37 per liter
  • Sparkling wine is taxed at $.55 per liter
  • Hard alcohol or spirits are taxed the most at $1.47 per liter

Not all alcohol is taxed. Some of the exceptions included alcohol used by pharmacist to make compounds, wine used for sacrament purposes in religious ceremonies (like communion), and beer, wine, or cider made at home for personal use with a lawful permit.

Gambling Tax The gambling taxes depend on the type of gambling, for example:
  • Horse racing organizations must pay a 10% tax on admission tickets
  • The promoter of any competitive boxing, wrestling, or mixed martial arts event must pay 5% of the gross revenue to the state as a tax
  • Charity bingo is also taxed at $.01 per bingo card & game sets sold in Oklahoma, 10% of the gross retail sales, and 10% of the price paid for the bingo equipment, but veteran’s organizations or homes for people with mental disabilities that are federally tax-exempt don’t have to pay these taxes

This brief overview may not answer all of your consumer tax questions. If you have more, speak with an experienced Oklahoma tax lawyer or consumer protection lawyer.

Note: State and federal tax laws are revised often. Contact an attorney or conduct your own legal research to verify these tax laws.

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