Oklahoma is one of the cheapest states in the U.S. to live in, with a cost of living about 14% below the national average and median home prices well under $200,000. Oklahoma City and Tulsa are the two economic anchors, offering jobs in energy, aerospace (Tinker Air Force Base), healthcare, and a growing tech scene. The financial picture has two caveats: the economy is closely tied to oil and gas prices, creating income volatility in boom-bust cycles, and the state has some of the highest combined sales tax rates in the country when local taxes are added. For households with stable income, Oklahoma’s low housing and property taxes make it one of the easiest states to build wealth.
Oklahoma at a Glance
| Metric | Value | National Rank |
|---|---|---|
| Population (2024) | 4.0 million | 28th |
| Median household income | $59,673 | Below average |
| Median home price | $210,000 | Well below average |
| Cost of living index | 86 | Very low |
| State income tax | 0.25-4.75% | Average |
| Sales tax | 4.5% (+ local up to 7%) | Very high combined |
| Property tax (effective rate) | 0.87% | Below average |
Income and Housing
| City/Area | Median Income | Median Home Price | Median Rent (2BR) |
|---|---|---|---|
| Oklahoma City | $62,000 | $230,000 | $1,050 |
| Tulsa | $55,000 | $210,000 | $1,000 |
| Norman | $58,000 | $240,000 | $1,050 |
| Edmond | $92,000 | $320,000 | $1,350 |
| Broken Arrow | $78,000 | $275,000 | $1,150 |
| Stillwater | $42,000 | $190,000 | $900 |
| Lawton | $48,000 | $150,000 | $800 |
Sales Tax Warning
Oklahoma has one of the highest combined sales tax rates in the US when local taxes are added:
| City | Combined Sales Tax Rate |
|---|---|
| Oklahoma City | 8.625% |
| Tulsa | 8.517% |
| Norman | 8.75% |
Energy Economy
Oklahoma’s economy is significantly tied to oil and gas. This creates income volatility:
- Boom periods: Very low unemployment, high wages in energy sector
- Bust periods: Job losses, slower state revenue, potential service cuts
Oklahoma Pros and Cons
| Financial Pros | Financial Cons |
|---|---|
| Very low COL (86 index) | Below-average income |
| Affordable housing ($210K median) | Very high combined sales tax (8-9%) |
| Low property taxes (0.87%) | Energy-dependent economy |
| Moderate income tax (4.75% max) | Tornado risk and insurance costs |
| Growing OKC metro | Limited public transit |
Related: Cost of Living by State | State Income Tax Rates | Property Tax by State