Chapter 14: Disability Tax Provisions and Special Discounts


Section 2: State Tax Provisions


Oklahoma Sales Tax Relief Credit [Individual]

O.S. 68-5010 sections 1-7: To file for sales tax relief, you must be an Oklahoma resident and physically live in Oklahoma for the entire year. Your total gross household income cannot exceed $20,000 unless one of the following applies:

  • You can claim an exemption for your dependent, or
  • You are 65 years of age or older by 12/31/06, or
  • You have a physical disability constituting a substantial handicap to employment (provide proof, see Form 538-S).

If any one of the above three items pertains to you, your total gross household income limit is increased to $50,000. Fill out and enclose Form 538-S if you qualify for this credit.

The Department of Human Services will make sales tax refunds to persons who have been continuously receiving aid to the aged, blind and disabled or Medicaid payment for nursing home care. These individuals do not need to file claims directly with the Tax Commission.

Physically Disabled License Plates and Reduced Vehicle Registration [Individual]

Title 47 Oklahoma Statutes, Section 1136 (8): Oklahoma law provides that a person who is eligible for a disability parking permit and whose vehicle has been modified to accommodate the disability may obtain a disability license plate and register his vehicle. The special plate and registration fee are also applicable if the vehicle has been modified for a family member within the second degree of consanguinity of the vehicle owner.

Application for Physically Disabled license plates: https://www.oklahoma.gov/tax/Individuals/Motor_Vehicle/Forms_&_Publicati...

Oklahoma Tax Commission-100 Percent Disabled Veterans: https://www.oklahoma.gov/tax/Individuals/100_percent_Disabled_Veterans/i...

Oklahoma City , OK 73194

Tax Deduction for Modifying a Vehicle, Home or Workplace [Individual]

Under Oklahoma law (O.S. 68 Section 2358 (D) (4)) an income tax deduction is available to individuals for the cost of modifications to a personal vehicle, home or workplace to compensate for the disability. To claim the deduction an individual must be an Oklahoma resident and have a physical disability which constitutes a substantial handicap to employment. Veterans certified by the VA as having a service-connected disability are conclusively presumed to be eligible for the deduction. Social Security Administration determination that a person is disabled may also serve as verification of a disability that is a handicap to employment. The Tax Commission may also consider other documentation of disability, such as a doctor's letter and/or agency letter that verifies a handicap to employment. Documentation of the expenses incurred must also be provided by the individual.

https://www.ok.gov/tax/Individuals/Motor_Vehicle/Tag,_Tax,_Title_&_Fees/...