Oklahoma restructured its income tax brackets with HB 2764 (effective TY2026), consolidating six brackets into four and reducing the top rate to 4.50%. The bottom bracket remains at 0%. Oklahoma also eliminated the state grocery sales tax effective August 29, 2024 (HB 1955) - local food taxes still apply. Oklahoma starts from federal AGI with Oklahoma modifications.
State Income Tax
0% â 4.50%
State Grocery Tax
0% (eliminated Aug 2024)
Supplemental Rate
4.50%
Oklahoma Income Tax Brackets 2026
HB 2764 (68 O.S. §2355(D)) created two filing-status bracket groups effective tax year 2026. Single and married filing separately filers use the first table; married filing jointly and head of household use thresholds exactly double the single amounts.
Taxable Income (Single/MFS)
Rate
$0 â $3,750
0.00%
$3,750 â $4,900
2.50%
$4,900 â $7,200
3.50%
Over $7,200
4.50%
Oklahoma Grocery Tax Eliminated
Oklahoma eliminated the state sales tax on food and food ingredients effective August 29, 2024 (HB 1955). The state rate on groceries is now 0%. However, local city and county sales taxes on food continue to apply in most Oklahoma jurisdictions - families in high-tax cities may still pay several percent in local tax on grocery purchases. Excluded from the exemption: alcoholic beverages, dietary supplements, food prepared and sold by the seller, and self-serve fountain drinks.
OBBBA Conformity - Oklahoma Conformity Status Pending
Oklahoma generally follows rolling IRC conformity, which would suggest the OBBBA tips and overtime deductions flow through to reduce Oklahoma taxable income automatically. However, no official Oklahoma Tax Commission guidance confirming OBBBA conformity has been published as of mid-2026. Verify from OTC guidance or the 2026 Form 511 instructions when released.
Oklahoma restructured its income tax brackets under HB 2764 (signed May 28, 2025, effective TY2026). The new four-bracket structure for single filers is: 0% on income $0â$3,750; 2.5% on $3,751â$4,900; 3.5% on $4,901â$7,200; and 4.50% on income above $7,200. HB 2764 also reduced the top rate from 4.75% to 4.50%.
What changed in Oklahoma's income tax under HB 2764?
HB 2764, signed May 28, 2025 and effective for tax year 2026, consolidated Oklahoma's old six-bracket system into four brackets and reduced the top rate from 4.75% to 4.50%. The new brackets (68 O.S. §2355(D)) create two filing-status groups: Single/MFS (thresholds: $3,750 / $4,900 / $7,200) and MFJ/HoH (thresholds: $7,500 / $9,800 / $14,400). The bottom bracket remains at 0%.
Does Oklahoma still have a grocery sales tax?
No - Oklahoma eliminated the state grocery tax effective August 29, 2024 (HB 1955, 68th Legislature). The state sales tax rate on food and food ingredients is now 0%. However, local city and county sales taxes on food still apply in most Oklahoma jurisdictions. Excluded from the exemption: alcoholic beverages, dietary supplements, prepared food made by the seller, and self-serve fountain drinks.
Does Oklahoma conform to the OBBBA tips and overtime deductions?
Oklahoma's OBBBA conformity status is not yet confirmed. Oklahoma generally uses rolling conformity with the federal IRC, which would suggest the OBBBA tips and overtime deductions flow through automatically. However, no official Oklahoma Tax Commission (OTC) guidance on OBBBA conformity has been published as of July 2026. Verify from OTC guidance or the 2026 Oklahoma Form 511 instructions when published.
Does Oklahoma have local income taxes?
Oklahoma does not impose local income taxes. However, Oklahoma local sales taxes are significant - cities and counties can add up to 6.5% on top of the state rate, making some Oklahoma communities have combined rates among the highest in the nation. After the state grocery tax elimination (August 2024), local taxes on food remain in most jurisdictions.
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