Comprehensive Guide to Oklahoma Tax Laws

What Is Tax Law?

Tax law is an area of law that deals with the legal obligations of a person or organization to pay taxes, as well as the rules that govern the taxation of said person or organization. Tax issues can be complicated, and if you seek an IRS problem resolution, attorneys from Hutton Tax Solutions may be able to help you.

There are two main types of taxes: direct and indirect. Direct taxes are those that are paid to the government by a person or organization, such as income tax and property tax. Indirect taxes are those that are paid by one person or organization on behalf of another, such as sales tax and excise duties.

How the IRS calculates your taxes depends on what type they are. For instance, when you pay income tax, your taxable income is your income minus any deductions and adjustments you qualify for. The taxable income, according to your income tax return, is then multiplied by the appropriate marginal rate to arrive at your total amount owed in taxes for that year.

Who Writes Tax Laws?

Generally, tax laws are drafted by people who are knowledgeable in the field of taxation. These people are usually lawyers or accountants who have studied tax law. Oklahoma law outlines the following standard tax fields:

  • Corporate income tax

  • Excise tax

  • Income tax

  • Motor vehicle rental tax

  • Petroleum excise tax

  • Property tax

  • Sales tax

The complexity of the US tax code is such that it requires a lot of knowledge to be able to make sense of it. This is why it is usually necessary for someone with experience in the field to write these laws.

How Does Tax Law Work in Oklahoma?

If you have received an IRS audit letter, you need to know a bit about the relevant tax laws. The state has many different types of tax laws, and it’s important to know what they are before getting into a situation that requires the help of a professional.

Income Tax

Income taxes vary depending on your income and how much you make in a year. For example, if you’re self-employed or have an investment income, your taxes will be higher than if you only receive wages from your job.

Sales Tax

A state’s sales tax is assessed on goods that are purchased within the state, but the rate varies depending on what the good is. For example, food items have a lower sales tax than clothing items because food is more of a necessity. 

Property Tax

In Oklahoma, property taxes are based on the property’s value. The value is determined using a three-tiered system: real estate, personal property, and business.

  • Real estate includes land, buildings, or structures.

  • Personal property includes motor vehicles and aircrafts.

  • Business personal properties include machinery and equipment used in a trade or business and furniture not used in a trade or business that is held primarily for the use of a trade or business.

A law firm or accounting office may be able to address any questions or concerns you have regarding Oklahoma taxable income.

What Are the Oklahoma New Tax Laws?

One of the most important things you can do is educate yourself on tax law in Oklahoma, including what taxes are collected by the state and who pays them. Oklahoma’s new tax laws are a result of the Tax Cuts and Jobs Act (TCJA) which was passed in December 2017. 

The bill made the following changes:

  • Individual income tax rates were reduced from 5.25% to 5%

  • Standard deductions were increased

  • Limited or eliminated itemized deductions of $4,050 per person

If you need assistance with understanding some of the recent changes to tax laws in Oklahoma, IRS help may be provided by local law firms, such as Hutton Tax.

Understanding Federal Tax Law in Oklahoma

Federal tax law is a complex subject, and it can be difficult to understand. Qualified professionals may explain tax law in Oklahoma by offering the following:

  • Providing some context about the federal tax law and its relevance in Oklahoma

  • Discussing the filing requirements for individuals and businesses

  • Explaining what constitutes income and deductions

  • Providing information about how to file taxes

When you are unsure of a topic as challenging to understand as tax law, getting professional advice from a reputable tax attorney might help.

Who Is Affected by Oklahoma Property Tax Laws?

Oklahoma property tax laws affect everyone who owns a home and pays property taxes.

Property taxes are assessed and collected by the county government. The amount of the tax is determined by the value of your home. This can be done by appraising it or using a “mass appraisal” method to estimate the value of all homes in a certain area.


Oklahoma Sales Tax Overview


If your business has nexus in Oklahoma, you have to determine whether the products or services you sell are subject to Oklahoma sales and use tax. A seller can have a physical nexus in Oklahoma as well as economic nexus. 

Rentals and sales of tangible personal products are subject to Oklahoma sales tax unless an item is specifically exempt, such as certain prescription medications, medical equipment, and supplies. Services are typically not subject to sales tax in Oklahoma. 

Whether you’ll need to collect sales tax in Oklahoma depends on whether you have nexus in the state, what types of goods you are selling and whether the buyers have to pay sales tax. 

Oklahoma’s statewide sales tax rate is 4.5%. If you haven’t been collecting sales tax, but you are supposed to, you will be held responsible for paying back taxes and applicable interest and penalties. 

Common Oklahoma Tax Law Services

Oklahoma’s Tax Commission is the state’s tax enforcement authority. It ensures that state and local taxes are collected and appropriately enforced.

The Oklahoma Tax Commission provides a wide range of services to taxpayers, including issuing refunds, processing payments, providing taxpayer education, and auditing the tax accounts of businesses.

Oklahoma firms provide various services related to taxation law, such as:

Taxes can be confusing, but there are many things you can do to make the process a little less stressful. Hiring an Oklahoma tax attorney is an excellent place to start.

How Can a Law Firm Help With Oklahoma Tax Laws?

Tax law services are an essential part of any individual’s life, and Oklahoma is no exception. If you have questions about your gross household income, earned income tax credit, or tax-exempt organizations, contact reputable attorneys from Hutton Tax.

Oklahoma’s tax laws can sometimes be complicated, but with the help of a tax relief attorney from a reputable law firm focusing on taxation law, you can take care of your taxes without any hassle.