Car Sales Tax in Oklahoma
Oklahoma charges a combined sales and excise tax rate of 4.5% on all new vehicles purchased in the state.
Written by Sarah Gray
Reviewed by Jessica Barrett
Oklahoma charges two taxes for the purchase of new motor vehicles: 1.25% sales tax and 3.25% excise tax for a total 4.5% tax rate. Used vehicles are taxed a flat fee of $20 on the first $1,500 of the purchase price, and the standard 4.5% combined tax rate for the remainder of the balance.
When you’re buying a vehicle, it’s important to keep in mind that there are more expenses at play than just the sticker price. Oklahoma does not allow local or county taxes on vehicle purchases, so it’s important to understand what taxes and fees you are responsible for to avoid being incorrectly charged.
Oklahoma’s vehicle taxes are comparatively low, but they are calculated differently than many other states, so it can be a bit confusing. But don’t worry,
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How much is the car sales tax rate in Oklahoma?
Sales tax on all vehicle purchases in Oklahoma—even used cars—is 1.25%.
In addition to the 1.25% sales tax, buyers are also charged a 3.25% excise tax on all new vehicle purchases. This means all new vehicle purchases are taxed at a flat combined rate of 4.5%. The excise tax is also applied to all but the first $1,500 of a used vehicle’s sales price. The first $1,500 of the used-vehicle price is taxed at a flat fee of $20.
How are car trade-ins taxed in Oklahoma?
While sales tax applies to all car purchases in Oklahoma, it does not apply to the value of any vehicle you might
trade in
. Instead, trade-in credit is deducted from the taxable price of the vehicle you’re purchasing.When a buyer comes along to purchase your old used truck, they will pay 4.5% combined taxes on $2,100 of the sales price, and a flat fee of $20 for the remaining $1,500.
Though many states calculate taxes on the sales price before any dealer incentives or credits are applied, it’s just the opposite in Oklahoma—sales and excise taxes are calculated on the purchase price after rebates or incentives are applied to the price. That means that if the above new vehicle scenario also included a cash rebate of $1,000, you’d only be taxed on $34,400 of your new truck’s sales price.
MORE: Oklahoma gas tax
How to calculate sales tax on a car in Oklahoma
Calculating taxes on a new car purchase in Oklahoma is quite simple, but things can get a bit confusing when dealing with used cars. Oklahoma makes it easy for buyers to figure out how much they should expect to be charged for taxes with their online
Sales Tax / Excise Tax Estimator
. Just enter the information about your car in the required fields, and you’ll have an estimate in no time.Key Takeaway Oklahoma charges a flat combined tax rate of 4.5% on all new vehicle sales.
Exemptions from Oklahoma car sales tax
In general, all sales of motor vehicles in Oklahoma are subject to sales tax—however, disabled veterans or their surviving spouses are entitled to partial or full exemption from vehicle sales taxes. To determine if you’re eligible, candidates should read and complete the 100% Disabled Veteran Declaration.
How to estimate Oklahoma tax, title, and registration fees
Sales tax is a large added fee on top of your vehicle purchase price, but it’s not the only one. You’ll also pay fees for title, registration, plate transfer, and documentation.
Here’s a rundown of the additional costs associated with buying a car in Oklahoma:
Cost | Average cost |
|---|---|
Sales/Excise tax | 4.5% |
Registration fee | $96 |
Title fee | $11 |
Plate transfer | $17 |
Documentation fee | $270 on average, but not limited by state or local governments |
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MORE: Is car insurance tax deductible?
How to find affordable car insurance in Oklahoma
Now that you have all the tools to determine how much tax you’ll pay on a car purchase in Oklahoma, you’re ready to head to the dealership—but before you drive off the lot in your ride, make sure you’ve got it covered with the best insurance at the best price.
If you want to save money on car insurance, the
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FAQ
How much is sales tax on a used car in Oklahoma?
The first $1,500 of a used car’s purchase price is levied a 1.25% sales tax and a $20 excise tax. Any remaining balance still owed is charged the 1.25% sales tax, plus 3.25% excise tax.
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