Oklahoma Sales Tax on Software and Digital Products Oklahoma: Sales Tax Handbook

Oklahoma:

Are Software and Digital Products subject to sales tax?

While Oklahoma's sales tax generally applies to most transactions, certain items have special treatment in many states when it comes to sales taxes. This page describes the taxability of software and digital products in Oklahoma, including canned software - delivered on tangible media, canned software - downloaded, custom software - delivered on tangible media, custom software - downloaded, customization of canned software and digital products. To learn more, see a full list of taxable and tax-exempt items in Oklahoma.


Canned Software - Delivered on Tangible Media
TAXABLE
Sales of canned software - delivered on tangible media are subject to sales tax in Oklahoma.

Canned Software - Downloaded
EXEMPT
Sales of canned software - downloaded are exempt from the sales tax in Oklahoma.

Custom Software - Delivered on Tangible Media
EXEMPT
In the state of Oklahoma, it is considered to be exempt so long as there is a tangible personal property transferred with custom software, which is incidental to sale of the software. If a computer is purchased with custom software and the charges are not separately stated, the entire purchase is deemed taxable.

Custom Software - Downloaded
EXEMPT
Sales of custom software - downloaded are exempt from the sales tax in Oklahoma.

Customization of Canned Software
TAXABLE
In the state of Oklahoma, any reasonable, separately stated charges for modifications to canned software which was prepared specifically for a certain customer is exempt only to extent of the modification.

Digital Products
EXEMPT
Sales of digital products are exempt from the sales tax in Oklahoma.



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Source: http://www.salestaxhandbook.com/oklahoma/sales-tax-taxability/software-and-digital-products