TAXES 18-55, Oklahoma State Income Tax Withholding

Published: June 12, 2018
Effective: Pay Period 09, 2018

Summary

The income tax withholding formula for the State of Oklahoma has changed the way marital status and exemptions are claimed. If the marital status is Head of Household (H), the system will use Single. If the marital status is blank or invalid, the system will default to Single.

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:	OK W-4
Basis for Withholding:	State or Federal Exemptions
Acceptable Exemption Data:	S/M/H, Number of Exemptions
TSP Deferred:	Yes
Special Coding:	None
Additional Information:	None

Withholding Formula (Effective Pay Period 09, 2018)

Subtract the nontaxable biweekly Thrift Savings Plan (TSP) contribution from the gross biweekly wages.
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.
Add the taxable biweekly fringe benefits (e.g., taxable life insurance) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
Multiply the adjusted gross biweekly wages by the number of pay dates in the tax year to obtain the gross annual wages.
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

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

Single or Head of Household 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

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.
Add the additional amount or percentage elected by the employee to the pay period tax calculated in step 7 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.

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