TAXES 17-08, Oklahoma State Income Tax Withholding

Published: March 10, 2017
Effective: Pay Period 06, 2017

Summary

The Single and Married income tax withholdings will increase for the State of Oklahoma as a result of changes to the formula for tax year 2017. 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)

Subtract the nontaxable biweekly Thrift Savings Plan 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 (i.e., taxable life insurance) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
Multiply the adjusted gross biweekly wages times 26 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 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	$0.00 plus 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	$0.00 plus 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 26 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 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 in the center ribbon. Select U.S. Income Tax Formulas from the Publication menu to launch the tax map. Select the desired State from the map provided for the formula.

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