Determination engine

Which state do you actually withhold in?

Reciprocity, convenience-of-the-employer, nonresident thresholds and unemployment localization, applied together to one employee's facts. Every answer cites the state source it came from.

Withhold Oklahoma income tax.

The work state does not tax these wages, so the residence state governs.

Income tax withheld to

Oklahoma

Graduated, top rate 4.5%

Employee certificate

OK-W-4

Employee's State Withholding Allowance Certificate

Unemployment insurance

Texas

Localized under factor 1: Localization.

Reciprocal agreement

Texas has no reciprocal agreements.

✓

No Texas withholding

Texas has no personal income tax on wages, so nothing is withheld for the work state.

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Oklahoma still taxes this income

A resident state taxes its residents on all income regardless of where it is earned. If you have nexus in Oklahoma you should register and withhold Oklahoma tax; if you do not, the employee must cover it through estimated payments.

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Employer registrations you will need

Oklahoma — Income tax withholding: Oklahoma Tax Commission
Texas — Unemployment insurance: Texas Workforce Commission (TWC)

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Get the form

OK-W-4 — Texas (official state source)

Texas profile Oklahoma profile Full write-up for this pair

Change the inputs

Withholding determination

Answer six questions. The result is a shareable link, so you can paste it into a ticket or an email.

Employee lives inState of residence

Work is performed inWhere the employee physically sits

Employer is based inWhere the work is directed from

Days in the work stateThis calendar year, leave blank if unknown

Wages from work-state daysUS dollars, leave blank if unknown

Arrangement Works remotely rather than at an employer location Remote work is an employer necessity, not employee preference

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This is a determination aid, not advice. StateSide encodes published state rules and applies them mechanically to the facts you enter. It does not know your entity structure, your nexus history, your equity compensation, or the dozens of exceptions that turn a clean rule into a judgement call. Every determination cites the state source it came from — verify against that source, and take anything consequential to a payroll tax professional before you act on it.