Use tax is tax on items purchased for use in Oklahoma that were purchased online, mail order catalogs, radio, etc. where Oklahoma tax was not collected by the seller. The buyer, or taxpayer, will record the use tax on the individual tax return.
How do I calculate my Use tax?
There are several ways to calculate your Use Tax.
1. Use tax is calculated at the same rate as sales tax. Since this varies by city and county, use the state sales tax rate of 4.5% (.045) plus the applicable city and/or county rates. If you do not know your city or county tax rate you can:
- Multiply your Federal Adjusted Gross Income by 0.056% (.00056).
- Use one of the worksheets provided below (also found in the OK instruction booklet)
Worksheet One* is for taxpayers that do have records of all of their out of state purchases, calculate your Use Tax using the below worksheet.
Worksheet Two* is for taxpayers that do not have records of all their out of state purchases.
What if I paid sales tax for another state?
If you paid sales or use tax to another state, you may credit the amount paid against the Oklahoma use tax due.
Where do I enter this in the program?
To enter Use Tax on your Oklahoma return, visit:
- State Section
- Oklahoma return
- Use Tax
*Worksheets are copies of the worksheets found in the Oklahoma 2019 tax booklet