TAXES 18-39, Oklahoma State Income Tax Withholding | National Finance Center

TAXES 18-39, Oklahoma State Income Tax Withholding

Published: March 21, 2018
Effective: Pay Period 06, 2017

Summary

This tax bulletin is being updated to remove the number of pay periods in steps 4 and 7 and replace with the phrase "number of pay dates in the tax year," thereby preventing any confusion in future years. All other information in this bulletin remains the same.

No action on the part of the employee or the personnel office is necessary.

Tax Formula

State Abbreviation:

OK

State Tax Withholding State Code:

40

Acceptable Exemption Form:

W-4

Basis for Withholding:

State or Federal Exemptions

Acceptable Exemption Data:

S/M, Number of Exemptions

TSP Deferred:

Yes

Special Coding:

None

Additional Information:

If no State income tax certificate has been processed or no valid State exemption code is present, the Federal exemptions will be used in the computation of State taxes.

 

Withholding Formula (Effective Pay Period 06, 2017)

  1. Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.
  2. Subtract the nontaxable biweekly Federal Health Benefits Plan payment(s) (includes dental and vision insurance program and Flexible Spending Account - health care and dependent care deductions) from the amount computed in step 1.
  3. Add the taxable biweekly fringe benefits (i.e., taxable life insurance) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
  4. Multiply the adjusted gross biweekly wages by the number of pay dates in the tax year to obtain the gross annual wages.
  5. Determine the exemption allowance by applying the following guideline and subtracting this amount from the results in step 4 to compute the taxable income:

    Exemption Allowance = $1,000 x Number of Exemptions

  6. Apply the taxable income computed in step 5 to the following table(s) to determine the annual Oklahoma tax withholding:

    Single Tax Withholding Table

    If the Amount of Taxable Income Is:

    The Amount of Tax Withholding Should Be:

    Over $0 but not over $6,350

    $0.00

    Over $6,350 but not over $7,350

    0.50% of excess over $6,350

    Over $7,350 but not over $8,850

    $5.00 plus 1.00% of excess over $7,350

    Over $8,850 but not over $10,100

    $20.00 plus 2.00% of excess over $8,850

    Over $10,100 but not over $11,250

    $45.00 plus 3.00% of excess over $10,100

    Over $11,250 but not over $13,550

    $79.50 plus 4.00% of excess over $11,250

    Over $13,550

    $171.50 plus 5.00% of excess over $13,550

     

    Married Tax Withholding Table

    If the Amount of Taxable Income Is:

    The Amount of Tax Withholding Should Be:

    Over $0 but not over $12,700

    $0.00

    Over $12,700 but not over $14,700

    0.50% of excess over $12,700

    Over $14,700 but not over $17,700

    $10.00 plus 1.00% of excess over $14,700

    Over $17,700 but not over $20,200

    $40.00 plus 2.00% of excess over $17,700

    Over $20,200 but not over $22,500

    $90.00 plus 3.00% of excess over $20,200

    Over $22,500 but not over $24,900

    $159.00 plus 4.00% of excess over $22,500

    Over $24,900

    $255.00 plus 5.00% of excess over $24,900

     

  7. Divide the annual Oklahoma tax withholding calculated in step 6 by the number of pay dates in the tax year and round to the nearest dollar to obtain the biweekly Oklahoma tax withholding.
  8. Add the additional amount or percentage elected by the employee to the pay period tax calculated in the above step and round to the nearest dollar to determine the amount of tax to be withheld for the pay period.

Resources

To view the updated tax formula, go to the HR and Payroll Clients page from the MyNFC drop-down menu on the National Finance Center (NFC) homepage. Select the Publications tab and select U.S. Income Tax Formulas from the Publications menu to launch the tax map. Select the desired State from the map provided for the formula.

Inquiries

For questions about NFC processing, authorized Servicing Personnel Office representatives should contact the NFC Contact Center at 1-855-NFC-4GOV (1-855-632-4468) or via the customer service portal.