Oklahoma sales tax exemptions for manufacturing
For information only, not tax advice
Manufacturers can buy qualifying items without sales tax with an exemption permit. This page covers the permit, record keeping and the construction materials refund.
The manufacturer exemption permit
Oklahoma's manufacturing exemption is in 68 O.S. 1359. The proof of eligibility is a manufacturer exemption permit issued under 68 O.S. 1359.2. Manufacturers apply to the Oklahoma Tax Commission for the permit and should confirm eligibility with it. Under OAC 710:65-7-9, a vendor must keep a copy of the buyer's permit, or the buyer's name, address and permit number, and can check a permit with the Taxpayer Resource Center or the permit list.
Whether the exemption reaches city and county sales tax is not verified here; confirm with the Oklahoma Tax Commission.
Construction materials for new or expanded plants
Under 68 O.S. 1359.1 and OAC 710:65-13-153, qualified manufacturers can get a refund or exemption of state and local sales tax on construction materials for a new or expanded manufacturing facility. The rule sets tiers:
- More than $5 million in cost and 100 new full-time employees kept for 36 months.
- More than $10 million in cost with more than $50 million in total property and 75 new full-time employees.
- More than $300 million in cost and 1,750 full-time employees.
The Employment Security Commission must certify employment, and the certification is due within 36 months of the first purchase. The benefit is administered as a refund of state and local tax paid, and can be assessed back if the job count is not kept. Read the rule for the full test.
Aircraft maintenance and manufacturing
68 O.S. 1357 also exempts certain computers, data processing equipment and construction property for aircraft maintenance and manufacturing facilities that meet minimum cost and job thresholds. See the statute text.
Recent changes
Section 1357 was amended in 2026 by SB 2184 (effective May 6, 2026), HB 3661 (November 1, 2026) and SB 1400 (January 1, 2027). Review the current text and OTC Publication D, exempt sales before relying on an exemption.
Because a plant also buys electricity, see sales tax on utilities. Local tax matters for the buyer, so keep the rate hub handy.
- Oklahoma City sales tax rate8.625% to 10.12%
- Tulsa sales tax rate8.517% to 9.7%
- Norman sales tax rate8.75%
- Edmond sales tax rate8.25%
- Broken Arrow sales tax rate8.417% to 9.6%
- Lawton sales tax rate9%
- Moore sales tax rate8.5%
- Midwest City sales tax rate9.1%
- Stillwater sales tax rate9.313%
- Owasso sales tax rate8.917% to 10.05%
Official sources
- OAC 710:65-7-9, exemption permits
- OAC 710:65-13-153, construction materials
- 68 O.S. 1357 on OSCN
- OTC Publication D, exempt sales
Source: Oklahoma Tax Commission, Rates and Codes for Sales, Use, and Lodging Tax, rates effective October 1 to December 31, 2026 (Q4 2026). View the official OTC rate chart (PDF).
Cities and counties set their own rates, and the Oklahoma Tax Commission publishes them each quarter. Some changes take effect on other dates. MuniRevenue is not affiliated with or endorsed by the Oklahoma Tax Commission.
These figures are jurisdiction-wide, not address-level. For the rate at a specific address, use the OTC Sales and Use Tax Rate Locator (how address-level lookup works).
For information purposes only. This page is published for general information and does not constitute tax, legal, or accounting advice. Do not rely on it to determine the tax due on any transaction.
Accuracy. Rates are transcribed from the Oklahoma Tax Commission chart named above and can change during the year; a rate may have changed since that chart was published. Product-specific exemptions, tax holidays, and special levies are not reflected. MuniRevenue makes no warranty as to accuracy or completeness. Always confirm against the Oklahoma Tax Commission before relying on a rate.
Frequently asked questions
How does a manufacturer claim the sales tax exemption in Oklahoma?
A manufacturer exemption permit issued under 68 O.S. 1359.2 is proof of eligibility for the manufacturing exemption. Manufacturers apply to the Oklahoma Tax Commission for the permit, and should confirm eligibility with it.
What must a seller keep when a buyer claims the exemption?
The seller must keep a copy of the buyer's permit, or the buyer's name, address and permit number, under OAC 710:65-7-9.
Does the manufacturing exemption cover city and county tax?
Confirm with the Oklahoma Tax Commission. MuniRevenue has not verified how the manufacturer exemption treats local tax, and 2026 amendments may have changed the exemptions.
More Oklahoma sales tax guides
- Find the rate for one address
- Sales tax on groceries
- Sales tax on restaurant meals
- Sales tax on cars
- Sales tax on boats and outboard motors
- Sales tax on utilities
- Back to school sales tax holiday
- Sales tax rate changes by quarter
Oklahoma sales tax rates by city and county | Oklahoma use tax explained
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