Oklahoma charges two taxes for new car purchases: a 1.25% sales tax and a 3.25% excise tax, for a total 4.5% tax rate.
New cars in Oklahoma are only taxed on their final purchase price after applying any trade-in credits, incentives, and rebates.
All vehicle purchases are subject to Oklahoma’s combined car tax, but disabled veterans or their surviving spouses may qualify for a discount.
Used vehicles are taxed a flat $20 on the first $1,500 of the purchase price and the 4.5% combined tax rate for the remaining price.
You must pay the Oklahoma sales and excise tax to register your vehicle—and there are additional fees for titling, registration, plate transfers, and documentation.
Oklahoma sales tax rate for new and used cars
The State of Oklahoma assesses a total 4.5% tax on all vehicle purchases in the state:
State sales tax: 1.25%
Vehicle excise tax: 3.25%
These taxes are charged a little differently for new and used cars:
Buying a new car: 4.5% on the final purchase price.
Buying a used car: The first $1,500 of the used-vehicle price is taxed a $20 flat fee. The combined 4.5% tax will only be assessed on the remaining price.
Key Takeaway: Oklahomans pay a flat combined tax rate of 4.5% on all new vehicle sales. Used vehicles work a little differently.
MORE:How to pay your Oklahoma excise tax
Trade-ins, rebates, and incentives are not taxed in Oklahoma
Trade-in credit is deducted from the taxable price of the vehicle you’re purchasing in Oklahoma.
For example: You’re buying a new Ford F150 at a dealership in Tulsa for $39,000, and the trade-in value of your old Dodge Ram is $3,600. You’ll only pay the combined 4.5% tax rate on $35,400 of your new truck purchase.
Oklahoma works differently from many other states in that sales and excise taxes are calculated on the purchase price after any other 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.
How to calculate sales tax on a car in Oklahoma
Calculating taxes in Oklahoma is quite simple for a new car purchase:
Multiply your car’s final purchase price by 0.045 for your total tax cost.
But things can get a bit confusing when dealing with a used car purchase:
Subtract $1,500 from the purchase price of your used car.
Multiply the remaining price by 0.045.
Add the result to $20 for your total tax cost.
Expert tip: Oklahoma makes it easy for buyers to figure out how much they should expect to be charged for taxes with their online
. Just enter the information about your car in the required fields, and you’ll have an estimate in no time.
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 vehicle sales tax exemption.
What to do: To see if you’re eligible for an exemption, visit the
. Candidates should read and complete the 100% Disabled Veteran Declaration to apply for tax exemption.
How to estimate Oklahoma tax, title, and registration fees
Car buyers should be prepared to pay sales and excise taxes before registering their vehicle in Oklahoma.
Oklahoma’s combined tax can add a good chunk of change to your vehicle purchase price—but it’s not the only additional cost to consider. There are also additional fees for titling, vehicle registration, plate transfer, and documentation.
Here’s a rundown of the additional costs you might have to pay when 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