Oklahoma Sales Tax Exemptions / Tax Free Items Oklahoma: Sales Tax Handbook


What purchases are exempt from the Oklahoma sales tax?

While the Oklahoma sales tax of 4.5% applies to most transactions, there are certain items that may be exempt from taxation. This page discusses various sales tax exemptions in Oklahoma.

Sales Tax Exemptions in Oklahoma

In Oklahoma, certain items may be exempt from the sales tax to all consumers, not just tax-exempt purchasers.

Some examples of items which the state exempts from tax charges are certain medical prescriptions, some items used in the agricultural industry, cable television services, meals or foodstuff used in furnishing meals for school children, and newsprint paper.

Many states have special, lowered sales tax rates for certain types of staple goods - such as groceries, clothing and medicines. Restaurant meals may also have a special sales tax rate. Here are the special category rates for Oklahoma:





Prepared Food


Prescription Drugs


OTC Drugs


These categories may have some further qualifications before the special rate applies, such as a price cap on clothing items. Groceries are generally defined as "unprepared food", while pre-prepared food may be subject to the restaurant food tax rate.

Candy and soda may be included or excluded from any preferential tax rate depending on whether or not the state considers them to be a "grocery":

Is candy taxable in Oklahoma? Candy IS considered a grocery in Oklahoma
Is soda taxable in Oklahoma? Soda IS considered a grocery in Oklahoma

Are services, shipping, installation, etc taxable in Oklahoma?

The taxability of transactions involving services, shipping, and installation of tangible goods can be slightly complicated with various laws applying to slightly different situations. To learn more about how these transactions, and other more complicated situations, are subject to the Oklahoma sales tax see the Oklahoma sales taxability FAQ page.

Other tax-exempt items in Oklahoma

This table lists a number of additional categories of goods and services that are exempt from Oklahoma's sales tax. For a list that also shows taxable items, see the list of taxable and nontaxable items in Oklahoma.

Category Exemption Status
Manufacturing and Machinery
Machinery EXEMPT
Raw Materials EXEMPT
Utilities & Fuel EXEMPT
Medical Goods and Services
Medical Services EXEMPT
Newspapers and Magazines
Newspapers EXEMPT
Periodicals EXEMPT
Occasional Sales
Motor Vehicles EXEMPT *
Optional Maintenance Contracts
General Optional Maintenance Contracts EXEMPT *
Janitorial Services EXEMPT
Software and Digital Products
Canned Software - Downloaded EXEMPT
Custom Software - Delivered on Tangible Media EXEMPT *
Custom Software - Downloaded EXEMPT
Digital Products EXEMPT

* See notes in category taxability page for details

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Source: http://www.salestaxhandbook.com/oklahoma/sales-tax-exemptions