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Oklahoma has a top income tax rate of 4.75% and is one of the more straightforward payroll states in the South-Central region. No state SDI or PFL, right-to-work, and relatively low employer costs. Rippling handles OK TAP, OESC, and workers’ comp compliance.
Oklahoma is a major South-Central economy with strengths in energy (oil and gas), agriculture, aviation/aerospace, and a growing technology sector in Oklahoma City and Tulsa. Oklahoma payroll is characterized by a moderate progressive income tax (top rate 4.75%), no state SDI or paid family leave, and workers’ compensation required for employers with 1+ employee. Oklahoma is a right-to-work state with a generally employer-friendly regulatory environment.
Rippling’s Oklahoma payroll module provides:
| Contribution | Rate | Notes |
|---|---|---|
| FUTA | 6.0% (net 0.6%) | After SUTA credit; first $7,000 |
| OK SUI (OESC) | New employer 1.5% | On first $27,000 of wages (2024) |
| Social Security | 6.2% | Up to $168,600 (2024) |
| Medicare | 1.45% | No wage base limit |
| Workers’ Compensation | Varies by risk class | Required for 1+ employee |
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| Contribution | Rate | Notes |
|---|---|---|
| Federal Income Tax | Graduated 10–37% | Per W-4 |
| Social Security | 6.2% | Up to $168,600 (2024) |
| Medicare | 1.45% + 0.9% surtax | Surtax above $200K single |
| Oklahoma State Income Tax | 0.25%–4.75% | 6-bracket progressive; top rate 4.75% on income above $7,200 single |
| Oklahoma Income (Single) | OK Rate |
|---|---|
| Up to $1,000 | 0.25% |
| $1,001–$2,500 | 0.75% |
| $2,501–$3,750 | 1.75% |
| $3,751–$4,900 | 2.75% |
| $4,901–$7,200 | 3.75% |
| Above $7,200 | 4.75% |
OK withholding remitted to OK TAP. Annual W-3 reconciliation. Top rate 4.75% applies at relatively low income thresholds.
Final Pay: Oklahoma requires final pay on the next regularly scheduled payday, or within 3 business days if requested. Accrued vacation: Oklahoma courts generally enforce employer written forfeiture policies.
Oklahoma requires workers’ compensation coverage for employers with any employees — even one part-time employee triggers the requirement. This is one of the lowest thresholds in the US. Coverage is available through private insurers or the CompSource Oklahoma state insurer. The Oklahoma Workers’ Compensation Commission administers claims.
Oklahoma has a 6-bracket progressive income tax with a top rate of 4.75% on income above $7,200 (single). The top rate applies at a very low threshold compared to most progressive states. Oklahoma has reduced its top rate from 5.25% in recent years. Rippling applies Oklahoma withholding tables.
Oklahoma has no state-mandated paid family leave or state disability insurance (SDI). Employees rely on federal FMLA (12 weeks unpaid, 50+ employee employers) and any employer-provided leave policies. Oklahoma is a right-to-work state with a generally employer-friendly regulatory environment.
Oklahoma’s minimum wage is $7.25/hour — matching the federal minimum. Oklahoma has not enacted a state minimum above the federal floor. Oklahoma City and Tulsa do not have local minimums above state.
