{"data":{"id":"us-ok/okla.-stat.-tit.-68-68-2355.1p-4","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 68, § 68-2355.1P-4","heading":"Calculation of tax","body":"A. For tax years beginning on or after January 1, 2022, there\n\nis hereby levied on each electing pass-through entity the pass-\n\nthrough entity tax which shall be calculated as follows:\n\n1. With regard to each member of an electing pass-through\n\nentity, the electing pass-through entity shall multiply such\n\nmember's Oklahoma distributive share of the electing pass-through\n\nentity's Oklahoma net entity income for the tax year by:\n\na. the highest Oklahoma marginal income tax rate levied\n\non the taxable income of natural persons pursuant to\n\nSection 2355 of this title if the member is an\n\nindividual, trust, or estate,\n\nb. four percent (4%) if the member is classified as a\n\ncorporation pursuant to the Internal Revenue Code, and\n\nis not classified as an S corporation,\n\nc. four percent (4%) if the member is a pass-through\n\nentity,\n\nd. four percent (4%) if the member is a financial\n\ninstitution subject to tax imposed pursuant to the\n\nprovisions of Section 2370 of this title, and\n\ne. the highest Oklahoma marginal income tax rate that\n\nwould be applicable to any item of the electing pass-\n\nthrough entity's income or gain without the election\n\nmade pursuant to subsection F of this section, if the\n\nmember is an organization described in Section 2359 of\n\nthis title; and\n\n2. The electing pass-through entity shall aggregate the amounts\n\ndetermined with respect to all members pursuant to paragraph 1 of\n\nthis subsection and the pass-through entity tax for the applicable\n\ntax year shall be equal to such aggregated tax amount for the tax\n\nyear with respect to which the election has been made.\n\nB. Sections 2385.29, 2385.30 and 2385.31 of this title shall\n\nnot be applicable to an electing pass-through entity.\n\nC. The pass-through entity tax shall be due and payable on the\n\nsame date as provided for the filing of the electing pass-through\n\nentity's Oklahoma income tax return, and for tax years beginning on\n\nor after January 1, 2020, estimated tax payments shall be required\n\nas provided in Section 2385.9 of this title.\n\nD. If the pass-through entity election results in a net entity\n\nloss for Oklahoma income tax purposes in any tax year, the net\n\nentity loss may be carried back and carried forward by the electing\n\npass-through entity for Oklahoma income tax purposes as set forth in\n\nsubparagraph b of paragraph 3 of subsection A of Section 2358 of\n\nthis title.\n\nE. Notwithstanding paragraph 2 of subsection C of Section 2368\n\nof this title, a nonresident individual who is a member of an\n\nelecting pass-through entity is not required to file an Oklahoma\n\nincome tax return, if, for the taxable year, the only source of\n\nincome allocable or apportionable to this state for the member, or,\n\nif a joint income tax return is filed, the member and his or her\n\nspouse, is from one or more electing pass-through entities, and each\n\nelecting pass-through entity files and pays the taxes due under this\n\nsection.\n\nF. Any entity required to file an Oklahoma partnership income\n\ntax return or an Oklahoma S corporation income tax return may elect\n\nto become an electing pass-through entity. The election shall be\n\nmade on such form and in such manner as the Oklahoma Tax Commission\n\nmay prescribe, and any election under this subsection shall have\n\npriority over and revoke any election to file a composite Oklahoma\n\npartnership return or requirement of a Subchapter S corporation to\n\nreport and pay tax on behalf of a nonresident shareholder for the\n\nsame tax year. An election may also be made by filing an income tax\n\nreturn prior to but not later than the due date of the applicable\n\nincome tax return, including any extension.\n\nG. Pursuant to procedures prescribed by the Tax Commission, if\n\nthe amount of tax required to be paid by a pass-through entity\n\npursuant to the provisions of this section is not paid when due, the\nmade by filing an income tax\n\nreturn prior to but not later than the due date of the applicable\n\nincome tax return, including any extension.\n\nG. Pursuant to procedures prescribed by the Tax Commission, if\n\nthe amount of tax required to be paid by a pass-through entity\n\npursuant to the provisions of this section is not paid when due, the\n\nOklahoma Tax Commission may revoke the pass-through entity's\n\nelection under subsection F of this section effective for the first\n\nyear for which the tax is not paid.\n\nH. The election authorized by the provisions of this section\n\nshall be made pursuant to procedures prescribed by the Tax\n\nCommission and shall be filed (i) within sixty (60) days of\n\nenactment and pursuant to procedures prescribed by the Oklahoma Tax\n\nCommission for any income tax year beginning on or after January 1,\n\n2019, and prior to January 1, 2020, or (ii) for any income tax year\n\nbeginning on or after January 1, 2020, at any time during the\n\npreceding tax year or two (2) months and fifteen (15) days after the\n\nbeginning of the tax year or by filing a timely income tax return as\n\nauthorized pursuant to subsection F of this section. Any such\n\nelection shall be binding until revoked pursuant to procedures\n\nprescribed by the Tax Commission. The effective date of a\n\nrevocation (i) made within two (2) months and fifteen (15) days of\n\nthe electing pass-through entity's taxable year shall be the first\n\nday of such taxable year and (ii) made during the electing pass-\n\nthrough entity's taxable year but after such fifteenth day shall be\n\neffective on the first day of the following taxable year. No\n\nelection made by a pass-through entity with respect to income tax to\n\nbe paid by such entity using the calculations prescribed by this\n\nsection shall be binding on any other pass-through entity, and each\n\npass-through entity shall be able to make an election under the\n\nprovisions of this act independently.","path":["OK Code","Title 68"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os68.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"3200a20d09400828e7922440af55eb3ab13ae03c1b4fc8f763ae429b737a240d","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-68-68-2355.1p-3","next":"us-ok/okla.-stat.-tit.-68-68-2355.2"},"notice":"GroundRules: Original legal text. Not legal advice."}