Ad Valorem Exemptions (Property Tax Exemptions) - Oklahoma Policy Institute (2024)

FAQs

What is the ad valorem property tax in Oklahoma? ›

Definition of property tax

A tax authorized by the Oklahoma Constitution under the term ad valorem tax; its tax rate is given in number of mills; and it is levied as a percentage of the taxable value of real and personal property. A mill is defined as one dollar of tax per thousand dollars of taxable value.

To receive homestead exemption, a taxpayer shall be required to file an application for homestead exemption with the county assessor in which their property is located. Click for County Assessor's Listing For any questions or comments, please call 713-1235, or e-mail us. number and the legal description.

Head-of-household (as defined below) must be age 65 or older prior to January 1, of current year. Head-of-household must be an owner of and occupy the Homestead property on January 1, of current year. Gross household income (as defined below) cannot exceed the current H.U.D.

The homestead exemption is the most common one to find in Oklahoma. It can remove up to $1,000 of your assessed value from your annual tax bill. You must own the property and have it as your primary residence as of January 1st of the year you're applying.

The Latin phrase ad valorem means "according to value." So all ad valorem taxes are based on the assessed value of the item being taxed. Property ad valorem taxes (property taxes) are usually levied by local jurisdictions, such as counties or school districts.

An ad valorem tax is any tax assessed based on the value of an underlying property or transaction. Real estate taxes and sales taxes are common examples.

Tax-exempt customers

Some customers are exempt from paying sales tax under Oklahoma law. Examples include government agencies, some nonprofit organizations, and merchants purchasing goods for resale. Sellers are required to collect a valid exemption or resale certificate from buyers to validate each exempt transaction.

Homestead exemption is a $1,000 deduction from the gross assessed value of your home. In most cases this will result in between $80 and $120 in tax savings. To apply for the exemption contact the county Assessor's office anytime during the year and ask for the application forms.

The property must be a valid homestead property with proper evidence of a homestead or an application. The freeze applies only to the homestead property used as your primary residence and may not be applied to a non-homestead property. Apply in person in the Assessor's office between January 1st and March 15th.

In Oklahoma, if your property tax payment is three or more years delinquent, you could potentially lose your home to a tax sale.

At what age do taxes stop? ›

At What Age Can You Stop Filing Taxes? Taxes aren't determined by age, so you will never age out of paying taxes. Basically, if you're 65 or older, you have to file a return for tax year 2023 (which is due in 2024) if your gross income is $15,700 or higher.

Your property taxes may be paid in full or in 2 installments. The one half or the full amount must be paid by December 31st. If nothing is paid by December 31st, then the full amount becomes delinquent January 1st and interest is added. We can not accept first half payment after the December 31st due date.

Oklahoma provides partial or full exemptions from ad valorem taxes for various categories of homeowners. All homesteads (a person's primary residence) are exempted $1,000 of the assessed value. Households with gross income under $20,000 are entitled to an additional $1,000 homestead exemption.

Oklahoma Property Taxes

74% of a property's assessed fair market value. Currently, the median property tax bill in Oklahoma is approximately $796 (based on a median home value of $107,700). Tulsa County has the highest property tax at an average of $1,344. The lowest amount is $244 in Cimarron County.

You may be able to claim a property tax credit if you are age 65 or older or totally disabled and claim the Head of Household status, You must also be a resident of and domiciled in the state during the entire preceding calendar year. The gross household income for the year cannot exceed $12,000.

Oklahoma's motor vehicle taxes are a combination of an excise (sales) tax on the purchase of a vehicle and an annual registration fee in lieu of ad valorem (property) taxes.

Oklahoma levies two taxes on motor vehicles. Motor vehicle taxes in Oklahoma are both selective sales taxes on the purchase of vehicles and ongoing taxes on wealth, the value of the vehicles. This is the largest of Oklahoma's selective sales taxes in terms of revenue generated.

An ad Valorem tax places a proportionately higher tax on expensive goods. This can encourage consumers to switch from expensive alcohol and expensive cigarettes – to cheaper varieties. A specific tax increases the price of all equally and has a bigger effect on reducing overall demand.