Oklahoma Sales Tax
Sales tax is a significant source of revenue for state, county and city governments in Oklahoma.
Oklahoma Sales Tax is 4.5%, and local governments may also levy a sales tax. Businesses must collect sales, use tax on taxable goods and services, and report and remit the taxes twice per month. Some customers, including government agencies and some nonprofit organizations, are exempt from paying sales tax. Other exceptions include sales to businesses for resale, gasoline and other fuels, and some residential utilities.
Your point-of-sale software can automatically handle sales tax determination and collection if you have a brick-and-mortar store. You can also set up a hosted store or marketplace solution that includes integrated sales tax rate determination and collection, though this usually comes with a fee.
A marketplace solution that includes tax automation can help you stay compliant with changing state and local laws. However, preparing and filing returns manually can be time consuming, especially for larger sellers. You can also hire an accountant or bookkeeper to handle these tasks for you.
How to File Oklahoma Sales Tax?
The first step in determining whether you must pay sales tax is assessing your nexus with Oklahoma. Nexus can be determined either through physical presence or economic activity. Physical nexus means you have a location in the state, but economic nexus occurs when you reach a certain threshold for sales in the state, such as $100,000 in annual sales.
Sales taxes in Oklahoma are due semi-annually and must be paid before or on the 20th day of each month following the reporting period. This process can be challenging for sellers, especially with complex state rates, filing deadlines, and sales tax holidays. Using an automated system can help you keep track of your obligations and ensure payments and returns are made on time.
If you have nexus in Oklahoma, you must register for a sales tax permit and collect the appropriate taxes on your sales. You can do this online through the Oklahoma Taxpayer Access Point.
In general, you have nexus in Oklahoma if you have at least $100,000 in annual sales and you either own inventory in the state or make taxable sales through a marketplace that doesn’t collect and report Oklahoma sales tax on your behalf. You also have nexus if you are an affiliate of a business that has nexus in Oklahoma.
