TIN ComplianceA resource from TIN Comply
Backup withholding
No
Nonresident payments
Yes, 4.75%
Forms
WTR10002, 500-B, 501
State withholding

Oklahoma backup withholding and nonresident contractor withholding

Oklahoma withholds on oil and gas royalties paid to nonresidents. 68 O.S. 2385.26 and OAC 710:50-3-53 require a remitter distributing Oklahoma royalty revenue to a nonresident royalty owner to withhold at the highest marginal individual income tax rate; the Tax Commission’s Form 500-B instructions show 4.75 percent for the related pass-through withholding, so confirm the current year’s rate. Publicly traded partnerships are exempt. Returns are Form WTR10002 quarterly, with an annual statement to each owner. No backup withholding provision was found on the Tax Commission’s withholding pages.

State backup withholding not requiredNonresident non-wage withholding requiredSources checked November 1, 2026Updated November 1, 2026
In this guide
  1. Status
  2. Withholding on non-wage payments to nonresidents
  3. What Oklahoma does not require
  4. Pass-through entity withholding
  5. From the source
  6. What to confirm
  7. Sources

Status

State backup withholdingNot required (inferred)

Inferred: no provision found in the saved statute or guide

Non-wage payments to nonresidentsRequired

Primary source (statute, regulation or agency publication saved in full); regulation via Cornell LII mirror

Federal backup withholding under IRC 3406 (24 percent on a missing or mismatched TIN) applies in Oklahoma exactly as everywhere else; this page covers only what the state adds. The 50-state tables put Oklahoma next to its neighbours, and the Oklahoma 1099 filing page covers whether the state wants its own copy of the 1099.

Withholding on non-wage payments to nonresidents

Applies to
Oil and gas royalties only: any remitter distributing royalty revenue from Oklahoma oil or gas production to nonresident royalty interest owners (individuals and entities; pass-through owners allocate the credit). No general nonresident contractor or entertainer withholding.
Threshold
None stated
Rate
Highest Oklahoma marginal individual income tax rate (currently 4.75%) of the gross royalty (reported on Form 1099)
Statute
68 O.S. 2385.26; Okla. Admin. Code 710:50-3-53
Withholding return
Oklahoma Nonresident Royalty Withholding Tax Return (Form WTR10002) quarterly
Exemption certificate or waiver
None; publicly traded partnerships exempt
Payee statement
Annual statement to each nonresident royalty owner and OTC (Form 500-B / 501 transmittal, or with the 1099 annual filing under 68 O.S. 2369)
Due dates
Quarterly: April 30, July 30, October 30, January 30
Exceptions
Oklahoma residents; royalties paid to publicly traded partnerships (IRC 7704(b)) and their affiliates

What Oklahoma does not require

State backup withholding

No state backup withholding: 68 O.S. 2385.1 et seq. (wage withholding); no backup-withholding provision found on OTC withholding pages

Basis: Inferred: no provision found in the saved statute or guide.

Pass-through entity withholding (out of scope)

Oklahoma requires 4.75% withholding on Oklahoma-source distributions to nonresident members of pass-through entities (68 O.S. 2385.29-2385.31; Forms 500-B, 501, WTP10003). Entity-level withholding on distributions to nonresident owners is a duty of the entity, not of a payer, and is not covered on this page.

From the source

“is the highest Oklahoma marginal individual income tax rate”

OAC 710:50-3-53(a), text via Cornell LII, read November 1, 2026

What to confirm

  • The regulation text was read from Cornell LII. The rate is defined as the highest marginal individual rate; the 4.75 percent figure appears in the Form 500-B instructions for the related pass-through withholding. Confirm the royalty rate for the current year with the Tax Commission.

Sources

Each source below was read and saved on November 1, 2026; the page is built from the saved text. Statutes are cited to the section; department pages and publications to their title and, where shown, revision date.

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