One of the few states in the US without a Social Security benefit tax is Oklahoma. As a result, retirees in Oklahoma who receive Social Security payments can keep a larger portion of their earnings. Additionally, the majority of other retirement income sources, such as pensions and annuities, are tax-free in Oklahoma.
It’s vital to remember that Oklahoma does have a sales tax even if it may be a tax-friendly state for retirees. For instance, the current Yukon, Oklahoma sales tax rate is 8.813%. This includes a 4.5% state sales tax, a 0.75 percent Canadian County sales tax, and a 3.56 percent Yukon City sales tax.
The sales tax is slightly lower at 8.25% in Lawton, Oklahoma. This includes a 4.5% state sales tax and a 3.75% local sales tax. It is significant to note that certain items, including groceries and prescription medications, might not be subject to Oklahoma’s sales tax.
Finally, Collinsville, Oklahoma levies an 8.5% sales tax. This includes both the city’s 4% sales tax and the state’s 4.5% sales tax.
Finally, due to the exemption from state income taxation on Social Security benefits, Oklahoma is a tax-friendly state for retirees. The state’s sales tax rates, which can differ based on the city or county in where you live or make purchases, must be kept in mind. Understanding Oklahoma’s tax regulations will help retirees make better financial plans and make the most of their golden years.
Does Oklahoma Tax Social Security” is how the article is titled.?” only refers to one aspect of Oklahoma’s tax policies and does not necessarily indicate whether Oklahoma is a high tax state or not. It would require further analysis of all the taxes and their rates in Oklahoma to determine if it is a high tax state or not.
Tennessee, with a combined state and average local sales tax rate of 9.55% as of 2021, has the highest sales tax rate in the country.