Live in Texas, Work in Oklahoma: Which State Taxes Your Paycheck?
Answer
Oklahoma is the only state with a claim. Living in Texas spares you a resident return, but it does not shelter income earned inside Oklahoma — that income is Oklahoma-source and it is taxed there on a nonresident return.
Last verified
Living in a state with no income tax removes the resident return, but it does not shelter income you earn somewhere else. Oklahoma taxes what is earned inside Oklahoma, whoever earns it, and a nonresident return is how that gets settled.
What you file
- 1Nonresident return · OklahomaForm 511-NR
File a Oklahoma nonresident return for the wages you earned in Oklahoma. Texas has no wage income tax, so there is no second return and no credit to claim.
The two states, side by side
| Texas | Oklahoma | |
|---|---|---|
| Taxes wages | No | Yes — graduated |
| Reciprocity partners | None | None |
| Convenience rule | No | No |
| Nonresident return | Not applicable | Form 511-NR |
| Credit for other-state tax | No income tax | Form 511-TX |
| Nonresident safe harbour | Not applicable | None published |
| Local income tax | No | No |
| Revenue department | Texas Comptroller of Public Accounts | Oklahoma Tax Commission |
| Last verified |
The other direction
Reversing the commute does not always reverse the answer. Living in Oklahoma and working in Texas gives:Home state only.
Same two states, different situation
The withholding answer turns on how you are paid and where the work happens, not only on which two states are involved.
- Remote worker: Texas → OklahomaNo state income tax on your wages
- 1099 contractor: Texas → OklahomaClient state only, if you work there
- Moved mid-year: Texas → OklahomaOne part-year return — the state you moved to
Other Texas pairs
Questions people actually ask
I live in Texas and work in Oklahoma. Which state takes the tax out of my paycheck?
Oklahoma is the only state with a claim. Living in Texas spares you a resident return, but it does not shelter income earned inside Oklahoma — that income is Oklahoma-source and it is taxed there on a nonresident return.
Which state should my employer be withholding for?
Oklahoma. The wages are sourced to Oklahoma, so Oklahoma withholding is correct and there is no Texas withholding to set up, because Texas levies no income tax on wages.
How current is this?
The Texas and Oklahoma rules on this page were last checked against Texas Comptroller of Public Accounts and Oklahoma Tax Commission on 2026-08-07. We re-check the full grid every December after state legislative sessions close, and re-check the convenience-of-the-employer states quarterly because that is where the rules move fastest.
Sources
Every fact above comes from the revenue department that publishes the rule. We do not cite secondary summaries, and we do not restate a figure we could not find at source.
- Texas Comptroller of Public Accounts — individual income taxaccessed 2026-08-07
- Oklahoma Tax Commission — individual income taxaccessed 2026-08-07