Oklahoma covers a good 180,000 km² in the south-central United States. It borders Texas to the south and has five other neighboring states. The capital of the Sooner State is Oklahoma City, and nearly 3.9 million people call Oklahoma home.
The state is known as a major energy producer. Oklahoma is the third-largest natural gas producer and the fifth-largest crude oil producer in the US, and it has the second-highest number of wells in the nation. The oil industry accounts for about a quarter of the state's GDP. No wonder energy costs run 22 percent below the national average. But reducing Oklahoma to an energy hub would be a mistake.
The Sooner State offers expertly tailored policies, well-regarded incentives and low costs of doing business, all of which help the bottom line of companies based here. Oklahoma is a constitutional right-to-work state with low unemployment insurance taxes and programs that significantly cut the startup costs of hiring and training. Companies such as Lufthansa, Siemens and ThyssenKrupp have operations here.
Central location
Oklahoma's location in the heart of North America gives local businesses cost-effective access to suppliers and customers. Being close to 26 major cities within roughly 1,300 kilometers is a huge advantage, as is the reach of 88 million people within a radius of 800 kilometers.
True to its central location, the infrastructure is excellent. Three inland ports, including the Tulsa Port of Catoosa, which handles 2.2 million tons of freight a year, 140 public-use airports, a rail network of nearly 7,000 kilometers and three intersecting interstate highways leave nothing to be desired. That makes Oklahoma a strong base not only for the US and North American markets, but for markets worldwide.
The role of FDI
Around 540 international companies are based and growing in Oklahoma. Their investment has created jobs for nearly 57,000 people, a good 22,500 of them in manufacturing. Foreign direct investment has also created many jobs in fields such as life sciences and energy.
Many of these companies come from the UK, France and Canada. 46 German companies are also based in Oklahoma, putting Germany in fourth place by number of companies. Between 2013 and 2018, FDI employment grew by nearly 17 percent, compared with just 3.7 percent for the private sector as a whole.
Hands-on talent development
Education and training programs build a talent pipeline, so companies can hire skilled workers and Oklahomans can find quality jobs. Work Ready Oklahoma is one program that contributes to this training.
The Central Oklahoma Workforce Innovation Board is a valuable resource for businesses. COWIB has a dedicated Business Services team that supports employers with core services for day-to-day and long-term challenges, including filling vacancies, skills-based hiring workshops, candidate screening and training grants. Because the team works with federal funding, most services are completely free for employers.
Income tax in Oklahoma
Oklahoma levies an income tax of 0 to 4.5% (tax year 2026), depending on income. On top of that, federal income taxes are due.
Corporate tax in Oklahoma
Oklahoma levies a corporate income tax of 4% (since tax year 2022). On top of that, federal corporate tax is due.
Sales tax in Oklahoma
The US has no European-style VAT. Instead, states, counties and municipalities levy a local sales tax on sales of goods (but not services).
Sales tax rate in Oklahoma
Oklahoma's state sales tax is 4.5%. Cities and counties add an average of 4.45%, for a combined average of 8.95%.
Oklahoma nexus laws & sales tax
Learn more about economic nexus laws and sales tax.
Effective date
November 1, 2019
Included transactions:
Aggregate sales of taxable tangible personal property delivered to locations within the state. Services are not included in the threshold.
Treatment of exempt sales:
Exempt sales and exempt services are not included in the threshold
Trigger:
Sales only
Sales/transaction threshold:
$100,000
Evaluation period:
The threshold applies to the previous or current calendar year
Additional information:
- Registration requirements: Oklahoma requires a remote seller to register and to collect and remit sales tax by the first calendar month following the month in which it exceeds the economic nexus threshold. For more information, see SB 513.
- Remote seller FAQs
- SB513
- HB1019
Oklahoma marketplace sellers & sales tax
Learn more about registration requirements for marketplace sellers
Effective date for marketplace facilitators:
Economic nexus threshold:
For remote sellers, at least $100,000 in total sales of tangible personal property in Oklahoma in the current or previous calendar year. Before November 1, 2019, remote sellers should include sales made through a marketplace when calculating the threshold. From November 1, 2019, remote sellers should exclude sales made through a marketplace that collects on their behalf. Marketplace facilitators include all taxable sales made through the marketplace when calculating the threshold.
Note: Marketplace facilitators with total sales of at least $10,000 of tangible personal property in Oklahoma during the immediately preceding 12-month calendar period must file an election with the Oklahoma Tax Commission either to collect and remit sales tax or to comply with the notice and reporting requirements for exempt sellers.
Registration requirements:
- Remote multichannel sellers: Once you exceed the economic nexus threshold, you must register with the Oklahoma Tax Commission and collect Oklahoma sales tax on sales not taxed by a marketplace facilitator.
- Remote marketplace sellers: You must register once you exceed the economic nexus threshold. Contact the Oklahoma Tax Commission for more information.
- In-state multichannel sellers: You must register with the Oklahoma Tax Commission and collect tax on sales not taxed by a marketplace facilitator.
- In-state marketplace sellers: You must register and collect tax on sales not taxed by a marketplace facilitator. Contact the Oklahoma Tax Commission for more information.
- Learn more here and here.
For an overview of every state, see our directory US states at a glance. Our guide Which US state is best for your company? helps you pick the right state, and the guide to forming a US company walks you through the process. And if you want to run your US LLC tax-free without a US permanent establishment, our sister site zerotax.llc is the place to go.
Our services for Oklahoma:
We support you with company formation, taxes and visas, including when your destination is Oklahoma. It usually starts with a consultation; you'll find the routes to your own company under US Company Formation.