Oklahoma taxes capital gains at 4.75%. Combined with federal taxes, your effective rate on a home sale could reach 23.5%.
OK State Rate
4.75%
Top marginal rate
Federal Rate
15%
Most common long-term bracket
Combined Effective
23.5%
On $150K taxable gain (example)
After the $250K/$500K exclusion, here's what a typical seller might owe.
If Oklahoma is where your primary residence is located and you've lived there at least 2 of the last 5 years, you can exclude up to $250K (single) or $500K (married filing jointly) of your capital gain from both federal and state taxes.
Investment and rental properties in Oklahoma don't qualify for the exclusion. You'll owe 4.75% state tax plus federal tax on the full gain, plus 25% depreciation recapture on any depreciation claimed.
In Oklahoma, homes sold in February sell for 6% more than those sold in October (-7%). Timing your sale right can offset a significant portion of your tax bill.
Capital gains tax rates on home sales in Oklahoma and nearby states.
| State | Rate | Tax on $150K Gain | Notes |
|---|---|---|---|
Texas0% | 0% | $0 | No state income tax |
| 4.4% | $6,600 | Top marginal rate | |
| 4.4% | $6,600 | Flat tax rate | |
OklahomaYou | 4.75% | $7,125 | Top marginal rate |
| 4.8% | $7,200 | Top marginal rate | |
| 5.7% | $8,550 | Top marginal rate | |
| 5.9% | $8,850 | Top marginal rate; 40% deduction available |
Selling in Texas instead of Oklahoma would save $7,125 in state tax on a $150K gain.
Oklahoma taxes capital gains as ordinary income at rates up to 4.75%. The state has a graduated system.
Oklahoma City and Tulsa drive the majority of market activity. Both have affordable housing that keeps most gains within the federal exclusion.
The state's economy is heavily influenced by energy prices, which can affect property values and timing of sales.
Oklahoma does not offer preferential treatment for capital gains versus ordinary income.
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