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Oklahoma sales tax on utilities

For information only, not tax advice

Oklahoma exempts residential gas and electricity from state sales tax. Local tax, water and business use are less clear, and this page says where to confirm.

Residential gas and electricity

Under 68 O.S. 1357, sales of natural or artificial gas and electricity, and the associated delivery and transmission services, are exempt from state sales tax when sold exclusively for residential use. See the statute text on OSCN.

Local tax on utilities: confirm first

The statute says the exemption does not apply to sales tax levied by a city, town, county or other jurisdiction. An OTC help center answer, however, lists residential utilities among the items where local tax does not follow the state base. These readings point in different directions, so MuniRevenue does not say whether your bill carries city or county tax. Check your bill and confirm with the Oklahoma Tax Commission. To see your local rate, use the rate hub.

Section 1357 was amended in 2026 by SB 2184 (effective May 6, 2026), HB 3661 (November 1, 2026) and SB 1400 (January 1, 2027), so paragraph numbers can shift. Read the current text.

Business use, water and telecom

  • The exemption is written for residential use. Businesses should confirm how their electricity and gas are taxed; separate exemptions, such as for manufacturing, may apply. See manufacturing exemptions.
  • Water: MuniRevenue has not verified how water sales are taxed. Confirm with the Oklahoma Tax Commission.
  • Telecommunications is an enumerated taxable service, with specific exceptions in 68 O.S. 1357.

Rate pages for the largest cities:

Official sources

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

Is residential electricity taxed in Oklahoma?

Sales of natural or artificial gas and electricity, and the delivery and transmission that goes with them, sold exclusively for residential use are exempt from state sales tax under 68 O.S. 1357.

Do cities charge sales tax on residential electricity or gas?

Confirm with the Oklahoma Tax Commission. The statute says the state exemption does not itself bind local taxes, while an OTC help page lists residential utilities as an exception to local tax. MuniRevenue does not state which applies.

Is telephone service subject to sales tax?

Telecommunications is a taxable service in Oklahoma, with specific exceptions listed in 68 O.S. 1357.

More Oklahoma sales tax guides

Oklahoma sales tax rates by city and county | Oklahoma use tax explained

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