Oklahoma Payroll Compliance
Every rate, wage base, and threshold Oklahoma employers need for 2026 — sourced from the Oklahoma Tax Commission and OESC — including a genuine bracket simplification, a rare SUI wage base decrease, and a rate-reduction trigger mechanism that could cut taxes further.
Minimum Wage & Hours
Oklahoma’s minimum wage matches the federal floor of $7.25/hour with no state-level increase enacted. No Oklahoma city or county sets its own minimum wage.
| Item | 2026 Value | Notes |
|---|---|---|
| State minimum wage | $7.25/hr | Matches the federal FLSA floor |
| Overtime rule | 40 hrs/week | Federal FLSA; no separate state overtime rule |
| Local wage ordinances | None | No Oklahoma city or county sets its own minimum wage |
State Income Tax Withholding
House Bill 2764 collapsed Oklahoma’s six income tax brackets into just three for 2026, while cutting the top marginal rate from 4.75% to 4.5%. The brackets are not indexed for inflation, and a rate-reduction trigger mechanism could cut the top rate further in future years.
| Item | 2026 Value | Notes |
|---|---|---|
| Bracket count | 3 brackets | Collapsed from 6, effective January 1, 2026, per HB 2764 |
| Top marginal rate | 4.5% | Down from 4.75% in 2025 |
| Bracket indexing | Not indexed | Thresholds are fixed in statute, not adjusted for inflation |
| Rate-reduction trigger | 0.25pt increments | HB 2764 authorizes further automatic cuts when state revenue conditions are met |
| Withholding allowance | $1,000 | Unchanged from 2025 |
| Filing deadline | April 20 | Oklahoma's individual filing deadline differs from the federal April 15 |
| Local income tax | None | No Oklahoma city or county imposes one |
Unemployment Insurance (SUI)
Oklahoma is one of only four states — alongside Iowa, Louisiana, and Missouri — where the SUI taxable wage base decreased for 2026. Two recent laws are responsible: HB 2570 (2024) restructured the rate schedule, and SB 911 (2025) further reduced both the wage base formula and the rate table.
| Item | 2026 Value | Notes |
|---|---|---|
| SUI wage base trend | Decreased for 2026 | One of only 4 states with a lower base than 2025 — confirm exact figure via OESC |
| New employer rate (non-construction) | 1.75% | Down from 2.7%, per HB 2570 (2024) |
| New employer rate (construction) | 5.55% | Down from 6.0%, per HB 2570 (2024) |
| Best-rated employer tier | 0% rate group | New for 2025 onward — highest positive-rated employers can reach a 0% rate |
| Trust fund solvency surcharge | Up to 33.3% | Triggered quarterly if the UI trust fund balance falls below $25 million |
| OESC Technology Reinvestment Assessment | 5% diversion | Reinstated; diverts a share of the employer's tax rate to fund OESC technology |