StateSide

OK · payroll profile

Oklahoma

Everything an out-of-state employer needs before running a Oklahoma payroll: what to withhold, which form the employee signs, whether reciprocity applies, and who to register with.

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Personal income tax
Graduated to 4.5%
Reciprocal agreements
None
SUI wage base 2026
$25,000
Local income taxes
No

Income tax withholding

Imposes wage income tax Yes
Rate structure Graduated, top marginal rate 4.5%
Withholding certificate OK-W-4
Employee's State Withholding Allowance Certificate
Accepts federal Form W-4 No
Convenience-of-the-employer rule No
Nonresident withholding threshold $300 of in-state wages
Per COST's multistate chart, Oklahoma withholding applies to a nonresident employee earning $300 or more in a CALENDAR QUARTER (not per year). Tax Foundation reports a $1,000 annual nonresident filing threshold. Not confirmed against an Oklahoma Tax Commission publication -- verify the quarterly figure before relying on it. Oklahoma consolidated to three brackets with a 4.50% top rate effective January 1, 2026.
Local income taxes No
No local personal income or wage taxes in Oklahoma.

Reciprocity

States that exempt Oklahoma residents

A Oklahoma resident working in these states files that state's certificate and is taxed only by Oklahoma.

District of Columbia

Unemployment insurance and paid leave

Taxable wage base 2026 $25,000
2025 base was $28,200.
New employer rate 1.5%
Oklahoma's taxable wage base decreased from $28,200 (2025) to $25,000 (2026).
Experience rate range 0.2% – 5.8%
Experience-rating method benefit wage ratio
Employee UI contribution No
Paid family / medical leave No

Employer registration

Tax agency
Oklahoma Tax Commission
UI agency
Oklahoma Employment Security Commission (OESC)

Sources

oklahoma.gov · cost.org · taxfoundation.org · oui.doleta.gov · oui.doleta.gov · oui.doleta.gov

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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.