Taxes / State tax rules / Oklahoma
Selling on eBay, Poshmark or Etsy from Oklahoma: sales tax and 1099-K rules
On a marketplace sale delivered to Oklahoma, a marketplace facilitator with at least $10,000 of taxable Oklahoma sales in the prior 12 months either collects Oklahoma sales or use tax or follows the notice and reporting rules of 68 O.S. § 1393, and a seller whose marketplace collects for it does not need to register for those sales. The Oklahoma Tax Commission pages we checked say nothing about a separate Oklahoma 1099-K rule.
General information, not tax advice. Check with a tax professional about your own situation.
Checked against the official pages listed below on .
Oklahoma in short
- General sales tax:
- Yes, 4.5% state rate
- Marketplace facilitator law:
- Yes: 68 O.S. §§ 1392-1393 (as amended by SB 513, 2019, and SB 1339, 2022), since Jul 1, 2018
- When a marketplace must collect:
- taxable Oklahoma sales worth at least $10,000 in the immediately preceding 12-month period (68 O.S. § 1392(A)); one Tax Commission help answer words it as more than $10,000
- Form 1099-K:
- No state rule stated on the pages checked
Who collects the tax on a marketplace sale
A facilitator with at least $10,000 of such sales files an election with the Tax Commission to collect and remit the tax or to comply with notice and reporting requirements; the first election was due on or before July 1, 2018 and each June 1 after. A facilitator that does not elect is deemed to have chosen notice and reporting, and an in-state facilitator collects sales tax while an out-of-state one collects vendor use tax.
If you sell only through marketplaces
The Tax Commission says a remote seller whose taxable Oklahoma sales all go through a marketplace that collects and remits for it does not need to register or collect. If the marketplace is not collecting for it, the seller collects on its marketplace sales unless it meets the small seller exception, and those marketplace sales count toward its $100,000 threshold.
Registration, resale certificates and what changes when you also sell direct have their own page: Oklahoma: seller's permit and resale certificate rules.
The law: 68 O.S. §§ 1392-1393 (as amended by SB 513, 2019, and SB 1339, 2022), effective .
"Marketplace facilitators are only required to either obtain a sales tax permit from OTC and collect Oklahoma state and local sales tax or comply with the notice and reporting requirements set out in 68 O.S. Section 1393"
"If you only make taxable sales into Oklahoma through a marketplace and the marketplace facilitator or referrer is collecting and remitting Oklahoma sales/use tax on your behalf, then you do not need to register and collect Oklahoma sales/use tax."
"worth at least Ten Thousand Dollars ($10,000.00) during the immediately preceding twelve-calendar-month period shall file an election with the Tax Commission"
"where the tax is collected and remitted by the marketplace facilitator or referrer shall not be included in determining whether the remote seller has met the threshold amount provided in this subsection."
Sources: Help Center: Businesses; Frequently Asked Questions (South Dakota v. Wayfair); Enrolled Senate Bill No. 513 (2019); Enrolled Senate Bill No. 1339 (2022).
Oklahoma's sales tax
Oklahoma's state sales tax is 4.5% of gross receipts from sales or rentals of tangible personal property and specific services, and county and city sales taxes are added where they apply. Shipped goods are taxed at the rates where delivery occurs.
"Oklahoma sales tax is levied at 4.5% of the gross receipts from the sale or rental of tangible personal property and from the furnishing of specific services."
Sources: Sales and Use Tax.
Form 1099-K: Oklahoma and the federal test
The Tax Commission's business help center and sales tax pages read for this page say nothing about an Oklahoma Form 1099-K requirement.
The federal test, for comparison: the IRS says a payment app or online marketplace must send a Form 1099-K when payments for goods or services total over $20,000 in more than 200 transactions, and adds: "However, they may send you a Form 1099-K with lower amounts and/or transactions." (Understanding your Form 1099-K, reviewed ). The Instructions for Form 1099-K count both parts for the calendar year, through each platform separately, and say the box 1a gross amount is figured without adjustments for credits, discounts, fees, refunds or shipping, so a 1099-K figure is not the same as profit. More on the federal rule in Form 1099-K for resellers.
Sources: Help Center: Businesses; Sales and Use Tax.
Worked examples
State tax on a $40 marketplace sale to Tulsa
At 4.5%, a $40.00 taxable item carries $1.80 of state tax, plus any county and city tax where it is delivered. A facilitator that elected to collect charges it; one that elected notice and reporting does not.
Whether marketplace sales count toward your $100,000
A remote seller sells $70,000 into Oklahoma from its own website and $50,000 through a marketplace in 2026. If the marketplace collects Oklahoma tax for it, the $50,000 is left out and the seller's $70,000 stays under the $100,000 small seller exception. If the marketplace does not collect, all $120,000 counts, the seller is over the exception, and it must collect on its marketplace sales too.
Edge cases and details
- A facilitator that files no election is deemed to have elected the notice and reporting requirements, under 68 O.S. § 1392(F) as amended; it may switch to collecting mid-year by filing a new election.
- Remote sellers lost the notice-and-reporting option on November 1, 2019, when the small seller exception rose from $10,000 to $100,000, the Tax Commission's Wayfair FAQ says; facilitators kept the election.
- The type of tax depends on where the facilitator is: one located in Oklahoma collects sales tax, one outside collects vendor use tax, and the marketplace seller's location does not change that.
- Senate Bill 1339 widened the facilitator definition to cover services and other transactions taxable under the Oklahoma Sales Tax Code, so facilitators selling Oklahoma lodging may now collect state and local taxes, the Tax Commission says.
- When a taxable item is sold without Oklahoma tax charged, the Tax Commission says the buyer reports use tax on the purchase price, on the Oklahoma Consumer Use Tax Return or the individual income tax return.
What to do
- Find out whether each marketplace you use collects Oklahoma tax; in Oklahoma that is the facilitator's election, not automatic.
- If a marketplace does not collect for you, add its Oklahoma sales to your other taxable Oklahoma sales against the $100,000 exception, and check with a tax professional.
- Keep each marketplace's statement of its Oklahoma election or collection with your records.
Common questions
Do marketplaces have to collect Oklahoma sales tax?
A facilitator with taxable Oklahoma sales worth at least $10,000 in the prior 12 months must either collect, under a sales tax permit, or comply with the notice and reporting rules of 68 O.S. § 1393, under § 1392 and the Tax Commission's help center.
Do I need an Oklahoma permit if I only sell on marketplaces?
Not if the marketplace collects and remits Oklahoma tax for you, according to the Tax Commission's FAQ. If it does not, the FAQ says the seller collects on those sales unless it qualifies for the small seller exception, which has been $100,000 since November 1, 2019.
Does Oklahoma have its own 1099-K threshold?
The Tax Commission pages we checked say nothing about an Oklahoma 1099-K rule.
Related
- Every state on one table: sales tax, marketplace facilitator laws and 1099-K rules
- Oklahoma: seller's permit and resale certificate rules
- Ohio: sales tax and 1099-K rules
- Oregon: sales tax and 1099-K rules
- Form 1099-K for resellers: the federal test
- Do eBay's fees apply to the sales tax a buyer pays?
- Where each selling app keeps its sales report
General information, not tax advice
This page summarizes Oklahoma's own published pages and statutes as read on , and the IRS's 1099-K pages. It doesn't say what you should file, register for or pay. Rules depend on your situation and change: check with a tax professional, or with the state's revenue department.
Sources
Official pages this page is built from, with the day each was read.
- Oklahoma Tax Commission: Help Center: Businesses; read . $10,000 election rule, sales tax vs vendor use tax, SB 1339 expansion.
- Oklahoma Tax Commission: Frequently Asked Questions (South Dakota v. Wayfair); read . Marketplace-only sellers, threshold counting, November 1, 2019 changes, use tax.
- Oklahoma Legislature: Enrolled Senate Bill No. 513 (2019); read . 68 O.S. § 1392 text: July 1, 2018 election, deemed election, threshold exclusion.
- Oklahoma Tax Commission: Sales and Use Tax; read . 4.5% state rate and delivery sourcing.
- Oklahoma Legislature: Enrolled Senate Bill No. 1339 (2022); read . 68 O.S. §§ 1391-1393 as amended effective January 1, 2023: election at $10,000 or more ('at least'), products and local taxes, threshold exclusion for remote sellers.
- IRS: Understanding your Form 1099-K, reviewed . The federal 1099-K test.
- IRS: Instructions for Form 1099-K, reviewed . Both parts of the federal test counted for the calendar year.
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