Head-to-head
Texas vs Oklahoma
Oklahoma is 9.214 points cheaper than Texas (87.843 vs 97.057), and rent is most of it: its rent parity is 33.740 points lower and its two-bedroom median $402 a month lower.
Updated
| Measure | Texas | Oklahoma | First − second |
|---|---|---|---|
| All-items price level | 97.057 | 87.843 | +9.214 points |
| Rent price level | 96.503 | 62.763 | +33.740 points |
| Home value | $283,800±$738 | $199,800±$1,121 | +$84,000 |
| Two-bedroom gross rent | $1,395±$5 | $993±$7 | +$402 |
| Household income | $78,476±$263 | $65,039±$439 | +$13,437 |
| Real estate taxes paid | $4,232±$19 | $1,599±$11 | +$2,633 |
$4,000 of monthly spending in Texas scales to $3,620 in Oklahoma at the 2024 all-items price ratio.
BEA 2024 and ACS 2020–2024; ± marks the Census 90% margin. How to read a gap
Texas vs Oklahoma: cheaper living north of the Red River, and an income tax
Oklahoma is cheaper in every category. Rents (62.763 against 96.503) carry the gap, utilities follow at 13.630 points, goods at 4.305 and other services at 1.623. Oklahoma renters also spend a smaller share of income on rent, 28.4% against 30.9%.
Ownership is far cheaper in Oklahoma too. An Oklahoma buyer starts $84,000 lower at the median and pays $2,633 a year less in property tax. Owners with a mortgage report median monthly costs of $1,539 against $2,106.
The trade-off is income tax. Texas has none; Oklahoma's individual income tax supplied 37.5% of its fiscal 2025 state collections, $1,185 per resident, and its 2026 withholding tables withhold at 2.5%, 3.5% and 4.5%. Working across the border has its own rule, set out below: a Texas resident with $1,000 or more of Oklahoma-source income files Oklahoma Form 511-NR. Oklahoma's state sales tax is 4.5% plus city and county rates, against Texas's 6.25% plus up to 2% local. Total collections were $3,164 per resident in Oklahoma and $2,836 in Texas.
Price adjustment levels the incomes. Texas's median household income is $78,476, $13,437 above Oklahoma's $65,039, yet real per capita personal income is almost the same: $58,219 in Texas and $58,692 in Oklahoma, which is slightly higher.
Both have become relatively cheaper since 2020, Texas from 98.759 and Oklahoma from 89.630. Hold the city and the job constant before reading the index as savings.
Price levels by category
| Measure | Texas | Oklahoma | Gap |
|---|---|---|---|
| All items | 97.057 | 87.843 | +9.214 |
| Goods | 98.083 | 93.778 | +4.305 |
| Housing (rents) | 96.503 | 62.763 | +33.740 |
| Utilities | 87.512 | 73.882 | +13.630 |
| Other services | 97.081 | 95.458 | +1.623 |
| Real income per person (2017 $) | $58,219 | $58,692 | −$473 |
Two state tax mixes, FY2025
Texas: $89.94 billion, $2,836 per resident. Oklahoma: $13.04 billion, $3,164 per resident.
| Tax | TX share | OK share | TX per resident | OK per resident |
|---|---|---|---|---|
| Individual income | not levied | 37.5% | — | $1,185 |
| General sales | 62.8% | 26.9% | $1,782 | $850 |
| Property | not levied | not levied | — | — |
| Motor fuel | 4.4% | 4.6% | $124 | $147 |
| Other selective sales | 19.5% | 10.1% | $552 | $320 |
| Corporate income | not levied | 4.9% | — | $155 |
| Licenses | 4.5% | 7.2% | $127 | $228 |
| Severance | 8.9% | 7.8% | $252 | $247 |
| Other taxes | not levied | 1.0% | — | $31 |
Taxes on wages and purchases
| Tax | Texas | Oklahoma |
|---|---|---|
| Income tax | no individual income tax | 2026 withholding at 2.5% to 4.5% |
| State sales tax | 6.25% state rate plus up to 2% local | 4.5% state rate plus city and county rates |
Living in Texas and earning income in Oklahoma
Oklahoma requires a return on Form 511-NR from every nonresident with $1,000 or more of gross income from Oklahoma sources, so a Texas resident paid for work in Oklahoma can owe Oklahoma tax even though Texas has no individual income tax. Someone who moves between the states during the year is an Oklahoma part-year resident, with resident filing requirements for the months domiciled in Oklahoma.
Sources, read : Oklahoma Tax Commission: 2025 Form 511 packet, residency and filing requirements.
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