2026 Packet OW-2 Oklahoma Income Tax Withholding Tables

Packet OW-2 • Revised 11-2025

# Table of Contents

General Information … 2-5
How to Compute Oklahoma Withholding … 5-6 Sample Computation: Percentage Formula Example … 7 Percentage Method of Withholding 8-9 Withholding Tables:
Weekly Payroll: Single Persons … 10 Married Persons … 11 Bi-Weekly Payroll: Single Persons … 12 Married Persons … 13 Semi-Monthly Payroll: Single Persons … 14 Married Persons … 15 Monthly Payroll: Single Persons … 16 Married Persons … 17 Daily or Miscellaneous Payroll: Single Persons … 18 Married Persons … 19

# General Information: Income Tax Withholding

In general, the income tax withholding law will apply to everyone receiving compensation for services rendered in Oklahoma with the exception of those services specifically excluded under 68 Oklahoma Statutes Section 2385.1 as amended:
(1) For services paid to an employee in connection with farming activities where the amount paid is $900.00 or less monthly;
(2) For domestic services in a private home, local college, club, or local chapter of a college fraternity or sorority;
(3) For services not in the course of the employer's trade or business performed in any calendar quarter by an employee, unless the cash remuneration paid for such service is $200.00 or more;
(4) For services performed in the state by a person who is not a "resident individual," whose income in any calendar quarter is not more than $300.00;
(5) For services performed by a duly ordained, commissioned, or licensed minister of a church in the exercise of his ministry or by a member of a religious order in the exercise of duties required by such order.
Additionally, recipients of pensions, annuities, and certain other deferred income may be subject to income tax withholding. For more information on filing, see OTC Rule 710:90-1-13.

# Registration, Identification, and Account Number

Every remitter of Oklahoma income tax withholding must have a Federal Employer Identification Number
(FEIN) as issued by the Internal Revenue Service (IRS). A FEIN may be obtained by filing an application with the IRS using Form SS-4 or by calling 800.829.4933.
Upon receipt of the FEIN, an Oklahoma income tax withholding tax account must be established. Oklahoma income tax withholding accounts can be established online at tax.ok.gov. During the online registration process, you will be given a choice between a payroll or retirement account.
After registration with the Oklahoma Tax Commission (OTC), income tax withholding remitters will be assigned an account number for each registered account. Account numbers must be used by the employer for all returns and correspondence with the OTC.

# Requirements

Filing of Returns: Employers will report the total number of employees paid during the quarter, total amount of wages paid during the quarter, and total amount of state tax withheld from wages for the entire quarter.
Remittances: Every employer required to deduct and withhold Oklahoma income tax from an employee's wages must remit the tax withheld each calendar quarter on or before the 20th day of the month following the close of the quarter, except where the amount withheld is more than $500.00 per quarter. Where the tax withheld is in excess of $500.00 per quarter, but less than $5,000.00, the tax withheld must be remitted on a monthly basis on or before the 20th of the following month. Where the tax withheld is $5,000.00 or more per month in the previous fiscal year, every employer must remit the tax withheld electronically.
Every employer owing an average of $10,000.00 or more in taxes per month in the previous fiscal year shall remit the amount withheld on the same dates as required under the federal semi-weekly deposit schedule for federal withholding taxes. All remitters of Oklahoma income tax withholding that are on the federal semi-weekly deposit schedule must remit Oklahoma withholding tax at the same time using the federal semi-weekly deposit schedule. For employers making payments other than by electronic funds transfer, a withholding payment voucher must be filed with each payment.

# Filing and Payment Methods

To efficiently process your payments and returns and avoid possible penalty and interest on delinquent payments, we encourage you to register for an OkTAP account via oktap.tax.ok.gov. OkTAP provides the opportunity to make remttances and file reports electronically, avoiding the burden on preparing paper returns and mailing checks.
For those who have not elected to file and/or pay electronically, forms and payment coupons are available to download via tax.ok.gov.

# W-2, W-2c, W-3, and W-3c Transmittal to the OTC

Employers with Oklahoma withholding/wage detail will be required to submit both W-2 and W-3 information to the OTC for tax year 2025 no later than January 31, 2026.
Employers or their payroll providers are required to use OkTAP to either upload files or manually enter information. Wage detail will follow the same electronic submission and file layout requirements as defined by EFW2 (Social Security Administration Publication No. 42-007).
It should be noted that manually developed forms, flash drives, diskettes will not be accepted. Any such media received will be returned and considered not filed.
W-2 and W-3 FAQs can be found on tax.ok.gov.

# Penalty/Interest for Failure to Withhold or Pay Taxes Withheld

Penalty for failure to pay the tax withheld when due is 10% of the amount of tax, or 10% of the amount of underpayment of tax, if not paid on or before the due date (20th day of the month when due). Penalty will be imposed when the taxpayer fails to pay tax when due, and if such failure is not corrected within 15 days, the tax becomes delinquent. Interest at the rate of 1.25% per month is due on any amount not paid by the due date.
Under the Income Withholding Tax Law of Oklahoma, every person who, as an officer of a corporation, a member of a partnership, or as an individual employer, is under a duty to withhold and remit Oklahoma income withholding tax may be personally liable to the State of Oklahoma for the taxes withheld. Sums withheld shall be deemed to be held in trust for the State of Oklahoma.
If an employer fails to withhold the tax required to be withheld, and thereafter the income tax is paid by the employee, the employer shall be subject to penalties and interest only.
If the OTC, in any case, has justifiable reason to believe that the collection of the tax is in jeopardy, the OTC may require the employer to file a return and pay the tax at any time.

# Common Law Employees

An employer-employee relationship exists for Oklahoma income tax withholding purposes when the person for whom services are performed has the right to control the manner and means of performing the work. It does not matter that the employer gives the employee substantial discretion and freedom to act, so long as the employer has the right to control the method and result of the service.
Common law rules provide the factors examined to determine whether an employer-employee relationship exists. These factors include, but are not limited to:

• Method of Payment: Workers paid on a regular basis (e.g. hourly, weekly, monthly) are more likely to be considered employees than persons paid a fixed amount for a specific service. The providing of fringe benefits is also typical of an employer-employee relationship.
• Set Hours of Work: An employer-employee relationship generally exists when the hours of work are set by the person for whom the services are provided. If fixed hours are not practical, the requirement to work at certain times would likely indicate an element of control.
• Materials and Tools: Persons who furnish their own tools and materials are less likely to be considered employees than persons who use tools and materials furnished by the hiring entity. Skilled workers who customarily use their own small tools for their trade may be considered an employee if the hiring entity has control over the service performed.
• Right of Discharge: The ability of a hiring entity to discharge a worker and the conditions under which discharge may occur are factors examined in determining an employer-employee relationship.

If an employer-employee relationship exists, Oklahoma income tax is required to be withheld and paid to the OTC regardless of the description given to workers, how payments are made or what they are called, and whether the person works full or part time. No single factor determines whether an employer-employee relationship exists. Examination of all facts and factors of each case is necessary to determine the existence of an employer-employee relationship.

# Independent Contractors

Persons who follow an independent trade, business, or profession in which their services are offered to the general public are considered independent contractors and not employees. Independent contractors realize a profit or suffer a loss as a result of their services and are legally obligated to complete a specific service in a specific manner. Examples include self-employed attorneys, doctors, contractors, subcontractors, and auctioneers. However, whether such persons are employees or independent contractors depends on the facts of each case.
Generally, an individual is considered an independent contractor if the entity receiving the person's services has the right to control the result of the work but does not have the legal right to control the manner and means of accomplishing the result.

# How to Compute Oklahoma Withholding

There are two methods you may use to determine the amount of Oklahoma income tax to be withheld from wage payments subject to Oklahoma income tax withholding: The percentage formula method or the wage bracket tables. Both methods use a series of tables calculated for single and married taxpayers for each type of payroll period frequency (weekly, monthly, etc.).
Important: You must use the correct table for your payroll frequency and the marital status of the payee in order to arrive at an accurate amount of Oklahoma withholding tax.
Using the wage bracket tables is considered to be the easier of the two methods. However, if you have highly-paid employees/payees or are using a computerized payroll system, you (or your software) may prefer using the percentage formula. Both methods are acceptable and produce almost identical results. Choose the method that best suits your payroll situation.

# Percentage Formula Method

The percentage formula is a mathematical formula based on the Oklahoma personal income tax rates. This method uses the tables that are on pages 8 and 9.
The percentage rate tables are based on the net wage amount. To compute the net amount of the payment, you must first calculate the employee's/payee's withholding allowance amount and deduct it from the gross wage or payment for the period before using the percentage rate tables. The number of withholding allowances claimed on OTC Form OK-W-4 must be used.

# Withholding Allowance Amount

An individual's withholding allowance amount is the Oklahoma individual income tax personal exemption amount of $1,000.00 divided by the number of payroll periods in the calendar year. Thus, an employee paid monthly has a withholding allowance of $1,000.00 divided by 12, or $83.33, per pay period for each withholding allowance claimed. The Oklahoma withholding allowance amounts for each payroll frequency are shown in the table below.

# Table of Withholding Allowance Amounts

# Rounding

Allowance
Per Year
52 $ 19.23
26 $ 38.46
24 $ 41.67
12 $ 83.33
4 $ 250.00
2 $ 500.00
1 $ 1,000.00
260 $ 3.85
Oklahoma withholding computed using the percentage method must be rounded. Round to the nearest whole dollar by dropping any amount under 50 cents and increasing amounts from 50 to 99 cents to the next higher dollar. For example, $2.49 becomes $2.00, and $2.50 becomes $3.00.

# Wage Bracket Tables Method

This method uses the series of tables that begin on page 10. The wage bracket tables are calculated using the percentage formula, with the results rounded and placed in convenient brackets for you. Withholding is computed by plotting the gross wage and the number of withholding allowances as allowances claimed on OTC Form OK-W-4) on the table that corresponds with your payroll frequency and the individual's marital status.
Important: When the payment for the period exceeds the last bracket or line of a wage bracket table, you must use the percentage formula to calculate the amount of Oklahoma tax to withhold on the entire payment.

# Withholding Calculations for Married Persons with Dual Incomes

Since Oklahoma married taxpayers are taxed on combined incomes, many married taxpayers do not have sufficient withholding to cover the annual liability. If a taxpayer has elected the option of "Married, but withhold at higher Single rate" on OTC Form OK-W-4, use the appropriate Single Persons withholding table.

# Sample Computation: Percentage Formula Method

Example
An individual is paid $1,825.00 semi-monthly. They are married and claim two withholding allowances on their OTC Form OK-W-4.
Step 1
Multiply the withholding allowance amount for your payroll frequency (see table on page 6) by the total number of withholding allowances claimed on the individual's OTC Form OK-W-4.
The semi-monthly withholding allowance is $41.67; the individual is claiming two withholding allowances.
$41.67 X 2 = $83.34
Step 2
Subtract this amount from the individual's gross payment for the period to arrive at the net payment amount.
$1,825.00 - $83.34 = $1,741.66
Step 3
Use the appropriate rate table on page 8 (Table 3: Semi-Monthly Payroll Period) to calculate the amount to be withheld. Since the individual is married, use Table 3, Column B: Married Persons.
The withholding rate is $12.19 plus 4.5% of the net amount of the wage payment that is over $1,129.00.
$1,741.66 - $1,129.00 = $612.66
$612.66 X 4.5% = $27.57 plus $9.10 (from table)
The Oklahoma withholding amount is $36.67, which must be rounded to $37.00.

# Example Table from Page 8:

# Tables for Percentage Method of Withholding

# Tables for Percentage Method of Withholding

# Weekly Payroll Period: Single Persons

# Weekly Payroll Period: Married Persons

# Bi-Weekly Payroll Period: Single Persons

# Bi-Weekly Payroll Period: Married Persons

# Semi-Monthly Payroll Period: Single Persons

# Semi-Monthly Payroll Period: Married Persons

# Monthly Payroll Period: Single Persons

# Monthly Payroll Period: Married Persons

# Daily or Miscellaneous Payroll Period: Single Persons

# Daily or Miscellaneous Payroll Period: Married Persons

# Looking for Additional Information?

No matter the tax topic, the OTC invites you to visit tax.ok.gov to get any additional information you might need.
Still Can't Find What You Need?
Location
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