OK Oklahoma State sales tax rates

STATEWIDE SALES TAX RATE

4.5%

ECONOMIC SALES THRESHOLD

$100,000

TRANSACTIONS THRESHOLD

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Do you need to collect sales tax in Oklahoma?

You’ll need to collect sales tax in Oklahoma if you have nexus there. There are two ways that sellers can be tied to a state when it comes to nexus: physical or economic. Physical nexus means having enough tangible presence or activity in a state to merit paying sales tax in that state. Economic nexus means passing a states’ economic threshold for total revenue or the number of transactions in that state.

Do you have physical nexus in Oklahoma?

Oklahoma considers a seller to have physical nexus 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

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.

Do you have economic nexus in Oklahoma?

Effective November 1, 2019, Oklahoma considers vendors who sell at least $100,000 in the previous 12 months in the state to have economic nexus. This means the state considers these vendors obligated to collect sales tax from buyers in the state.

Is what you’re selling taxable?

Services in Oklahoma are generally not taxable. However – 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, though a few products have an exemption, such as certain prescription medications. There is also an exemption for medical equipment and supplies.

Is SaaS taxable in Oklahoma?

SaaS is non-taxable in Oklahoma.

Collecting Sales Tax

The Oklahoma state sales tax rate is 4.5%. 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.

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.

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.

When are Returns Due?

When you file and pay Oklahoma sales tax depends on two things: your assigned filing frequency and your state’s due dates.

How often will you file sales tax returns in Oklahoma?

States assign you a filing frequency when you register for your sales tax permit. In most states, how often you file sales tax is based on the amount of sales tax you collect from buyers in the state.

In Oklahoma, you will be required to file and remit sales tax either monthly or semiannually.

Oklahoma sales tax returns are always due the 20th of the month following the reporting period. If the filing due date falls on a weekend or holiday, sales tax is generally due the next business day.