The Red River border decision for energy workers. Oklahoma has a 4.75% top income tax rate, while Texas charges 0% (constitutionally prohibited). At $100,000: Oklahoma $4,313 vs Texas $0. The catch: Oklahoma's property taxes (0.87%) are roughly half of Texas's (1.6%). For renters and high earners, Texas wins; for homeowners with modest incomes, the math is closer. OKC and Tulsa offer lower cost of living than Dallas-Fort Worth.

By CountryTaxCalc Research Team

Last Updated: April 2026

The Big Picture

🌾 Oklahoma

4.75%

Progressive Tax

6 brackets up to 4.75%

⭐ Texas

0%

No Income Tax

Constitutionally prohibited

Typical Annual Savings

At $100,000 income:

$4,313

That is $359/month back in your pocket!

Tax Savings by Income Level

IncomeOK TaxTX TaxSavings10-Year
$50,000 $1,881$0TX saves $1,881$18,810
$75,000 $3,069$0TX saves $3,069$30,690
$100,000 $4,313$0TX saves $4,313$43,130
$150,000 $6,688$0TX saves $6,688$66,880
$200,000 $9,063$0TX saves $9,063$90,630
$250,000 $11,438$0TX saves $11,438$114,380

Oklahoma Pros and Cons

✅ Pros

  • Lower property taxes (0.87% vs TX 1.6%)
  • Lower cost of living than Texas major metros
  • Energy industry presence (OKC, Tulsa oil/gas)
  • More affordable housing: OKC median ~$220K

❌ Cons

  • 4.75% top income tax rate
  • Smaller job market than Texas metros
  • Tornado Alley risk (severe weather)
  • Less economic diversity than Texas

Texas Pros and Cons

✅ Pros

  • 0% state income tax (constitutionally prohibited)
  • Diverse economy: energy, tech, healthcare, finance
  • Large job markets: Houston, Dallas, Austin, San Antonio
  • Better career growth opportunities

❌ Cons

  • Property taxes 1.6% (nearly double Oklahoma)
  • Higher cost of living in major metros
  • Extreme summer heat
  • Traffic in Houston/Dallas notorious
💡

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Frequently Asked Questions

Q: How much will I save moving from Oklahoma to Texas?

At $100,000 income: save $4,313/year in income tax. However, Texas property taxes are nearly double (1.6% vs 0.87%). On a $300K home: TX = $4,800/year, OK = $2,610/year—a $2,190 difference. Net savings at $100K with $300K home: $2,123/year. High earners save more; homeowners with modest incomes see smaller gains.

Q: Is Dallas-Fort Worth better than Oklahoma City for careers?

DFW has far more opportunities. It's the 4th-largest metro in the US with major corporate HQs (AT&T, American Airlines, Toyota, Charles Schwab) and diverse industries. OKC is energy-focused with fewer Fortune 500 companies. If career growth is priority, DFW wins. If low cost of living matters more, OKC offers excellent value—median home $220K vs DFW $400K+.

Q: What about the property tax difference?

Oklahoma's 0.87% property tax is a significant advantage over Texas's 1.6%. On a $400K home: OK = $3,480/year, TX = $6,400/year—$2,920 difference. This partially offsets income tax savings, especially for homeowners with moderate incomes. Renters see pure income tax gains; homeowners need to calculate total tax burden.

Q: Should energy workers stay in Oklahoma or move to Texas?

Depends on your role. Houston is the global energy capital with every major company HQ or major office—best for corporate, engineering, and finance roles. OKC and Tulsa have strong energy presence but smaller scale. For field operations, both states have positions. For career advancement in energy, Houston offers the most opportunities. For lower living costs, Oklahoma wins.

Q: Is Tulsa worth considering vs Dallas?

Tulsa is a sleeper choice. Google and other tech companies have opened offices there. Cost of living is ~40% less than Dallas. Remote workers keeping Dallas salaries while living in Tulsa see great value—but you pay Oklahoma's 4.75% tax. For in-person work, Dallas has 10x the job market. Tulsa is ideal for remote workers who want lowest total costs without giving up urban amenities.

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