How To Pay Your Oklahoma Excise Tax
Vehicle excise tax in Oklahoma is due when you purchase a vehicle. The excise tax rate on new vehicles is 3.25% of the purchase price.
Written by Melanie Krieps Mergen
Reviewed by Jessica Barrett
Vehicle excise tax in
Oklahoma
applies any time a transfer of vehicle ownership takes place. The excise tax rate on new vehicles is 3.25% of the purchase price, and on used vehicles, the tax is $20 for the first $1,500 of its value plus 3.25% of the remaining value.Make auto loan refinancing easy with PriceProtect™
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4.7/5 rating on the App Store | Trusted by 5+ million customers and 7 million cars4.7/5 app rating | Trusted by 5M+ driversWhat is an excise tax in Oklahoma?
An excise tax is a tax on a purchased good—and you’ll have to pay it in Oklahoma whenever there is a
transfer of ownership
on a vehicle. It’s collected once you’re issued an Oklahoma title for the vehicle.Oklahoma excise tax also applies to out-of-state purchases on all-terrain vehicles and boats and outboard motors.
Vehicle excise tax is different from sales tax, and you’ll owe both when you purchase a new vehicle. Excise tax alone is a significant source of revenue for the state: in 2020, it brought in more than $367 million.
If you buy a car in Oklahoma but you live out of state, and the car will also be titled and registered in your home state, you won’t have to pay excise tax in Oklahoma.
Calculating your excise tax payment
How much you’ll pay for excise tax on a vehicle purchase depends on its value or purchase price and whether it’s new or used.
On a new vehicle, Oklahoma excise tax is 3.25% of the vehicle’s purchase price—or its taxable value if it differs. Together with a 1.25% sales tax rate, you’ll pay a total of 4.5% in taxes on the purchase of a brand new vehicle.
For a used vehicle, $20 will be applied to the first $1,500 of its value. From the remaining value, 3.25% excise tax and 1.25% sales tax apply.
Different rates will apply to boats, ATVs and other vehicle types.
The state of Oklahoma offers a
sales and excise tax estimation tool
via the OkCARS website that can help you determine how much excise tax you’ll owe when you buy a vehicle.When calculating your excise tax, dealership rebates and discounts can be included, but a deduction for trading in a vehicle wouldn't apply.
Penalties for nonpayment
Since Oklahoma excise tax is due when titling a vehicle for the first time, and since you’ll need a title to register your vehicle, it’s hard to avoid paying it.
However, if you do end up not paying excise tax when it’s due and end up delaying your registration, you could face a variety of penalties, which will depend on the type of vehicle and the circumstances.
Expired registration renewal penalties, for example, accrue $1 per day until they’re paid up to a maximum penalty of $100. If you delay registering your vehicle for over a year, you’ll owe two years’ worth of registration fees, plus more in delinquency penalties.
Oklahoma motor license agents can provide additional information about penalties that apply to specific circumstances.
Long story short: no excise tax payment, no vehicle registration. Delaying payment on your excise tax will likely end up costing you more in the long run, so it’s best to take care of it when it’s due.
How to avoid excise tax in Oklahoma
If you purchase a vehicle in Oklahoma, you’re going to owe excise tax in most cases, and it’ll have to be paid in order to register your vehicle—so there’s no easy way to avoid it.
There are, however, several exemptions for vehicle excise tax in Oklahoma. They include:
- Vehicles that were owned and registered out of state at least 60 days prior to being registration in Oklahoma
- Nonresident military members stationed in Oklahoma with a vehicle they’ve registered in another state
- Government entities
- Inherited vehicles
- When a car isgifted a car in Oklahomaby an immediate family member (but the giver might still be subject to taxes of their own, depending on its value)
Figuring out how much you might owe on excise taxes can be complicated. If you have lingering questions, you can check the
Oklahoma Tax Commision website
or contact the commission
directly.“I can’t thank theJerryapp enough! They saved me $160 a month, and I didn’t even have to talk over the phone. They took care of everything through text.” —Travis Y.
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