Oklahoma Estate Taxes
Oklahoma has its own estate tax that is independent of the federal estate tax. Oklahoma also imposes an additional estate tax that is essentially designed to absorb any available federal estate tax credit for state death taxes.
The amount of Oklahoma estate tax imposed depends on who gets what after you are gone, according to the following categories:
- Surviving spouse: Any portion of the net taxable estate passing to the surviving spouse is completely exempt from tax.
- Other heirs: An estate exemption from state tax of $2 million in 2008 ($3 million in 2009) is granted to these heirs. Beyond the exemption, the estate tax rates are found in the table below.
| Oklahoma Estate Tax Rates |
| Taxable Estate Equal to or More Than |
Taxable Estate Less Than |
Tax on Amount in Col. (1) |
Plus Rate on Excess Over Col. (1) Amount |
| (1) |
(2) |
(3) |
(4) |
| $0 |
$10,000 |
$0 |
0.5% |
| $10,000 |
$20,000 |
$50 |
1% |
| $20,000 |
$40,000 |
$150 |
1.5% |
| $40,000 |
$60,000 |
$450 |
2% |
| $60,000 |
$100,000 |
$850 |
2.5% |
| $100,000 |
$250,000 |
$1,850 |
3% |
| $250,000 |
$500,000 |
$6,350 |
6.5% |
| $500,000 |
$750,000 |
$22,600 |
7% |
| $750,000 |
$1,000,000 |
$40,100 |
7.5% |
| $1,000,000 |
$3,000,000 |
$58,850 |
8% |
| $3,000,000 |
$5,000,000 |
$218,850 |
8.5% |
| $5,000,000 |
$10,000,000 |
$388,850 |
9% |
| $10,000,000 |
------------ |
$838,850 |
10% |
Deductions. The following items can be deducted from a resident decedent's estate when calculating Oklahoma estate tax liability:
- a marital deduction of all property interests except nondeductible terminable interests passing to the surviving spouse
- joint tenancy property or property held in tenancy by the entirety of a decedent and a surviving spouse
- decedent's debts
- funeral expenses and expenses of last illness to the extent actually expended
- up to $1,000 for a burial lot, crypt or mausoleum
- up to $500 for a tombstone, monument or marker
- administration expenses (including attorney's fees)
- unpaid taxes owed at the time of death
- executor's commissions (up to the statutory fee allowed by the court)
- unpaid mortgages
- credit for estate taxes paid on property previously taxed within 10 years of decedent's death or within two years after decedent's death
Returns. An Oklahoma estate tax return (Form 454) must be filed with the Oklahoma Tax Commission within nine months of the decedent's death. The filing deadline may be extended up to six months. Any Oklahoma estate taxes owed must be paid within nine months of the decedent's death.
If a federal estate tax return (Form 706) must be filed, a copy of the federal return must be attached to the Oklahoma estate tax return. Also attach a copy of the will (whether probated or not) or trust instrument (if any).
Generation-skipping transfer tax. Oklahoma does not impose this type of tax.
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