Oklahoma Revenues Show Continued Growth and Stability to Start 2026

State Treasurer Todd Russ released the January 2026 State Tax Revenue Report, showing total monthly revenue of $1.50 billion, a 0.2% decrease from December, but a 1.3% increase from January 2025. Over the last 12 months, Oklahoma received $17.22 billion, up 2.1% year-over-year, reflecting continued stability in the state’s fiscal base.

“January reflects a moderation following December’s peak, with revenues remaining stable on a rolling annual basis,” said Treasurer Russ. “While growth has cooled from late-year highs, the underlying trends point to stabilization rather than reversal as Oklahoma begins 2026.”

The 12-month ending revenue growth for January registered 0.11%, following 0.36% in October, 0.29% in November, and a peak of 0.70% in December, the strongest point since 2023. After a period of gradual strengthening through the fall, January reflects a moderation from December’s high rather than a reversal in trend. The rolling annual total remains positive, signaling underlying revenue stability as Oklahoma enters 2026 and providing state and local governments with a more predictable planning environment.

Key Takeaways from December 2025 Report

• 12-Month Total: $17.22 billion, up $347 million (2.1%) year-over-year, led by gains in income and energy-related taxes.
• 12-Month Ending Revenue Growth: 0.11%, up for the last four consecutive months
• Total Monthly Revenue: $1.50 billion, up 1.3% year-over-year, down 0.2% month-over-month.
• Sales & Use Tax: $642.0 million, up 5.4% from last year, signaling continued consumer activity.
• Income Tax: $594.7 million, down 1.9% year-over-year, reflecting softer withholding and corporate collections.
• Gross Production Tax (oil & gas): $85.2 million, up 1.4% year-over-year, supported by steady production.
• Motor Vehicle Tax: $73.7 million, up 1.6% from last year, reflecting steady vehicle registrations and title activity despite softer auto demand nationally.
• Other Sources: $136.2 million, down 3.5% year-over-year, reflecting mixed performance across smaller revenue streams.

Economic Indicators

• Oklahoma Unemployment: 3.6%, compared to 4.4% nationally, remaining below the U.S. rate despite a modest uptick at the start of the year.

• Consumer Price Index: Inflation remains elevated but relatively stable, with price growth moderating compared to earlier in 2025 as broader pressures continue to ease gradually.

• Business Conditions Index: Rose to 51.6 in January, rebounding above growth neutral after December’s contraction and signaling tentative stabilization in business activity.

• Manufacturing Activity and Exports: Manufacturing conditions showed early signs of improvement following late-year weakness, though export performance remains mixed as demand softens heading into 2026.

Ties to National Trends

Economic indicators suggest a period of stabilization following late-2025 volatility. Oklahoma’s Business Conditions Index rebounded to 51.6, moving back above growth neutral and signaling tentative improvement in manufacturing activity after year-end contraction.

The state’s unemployment rate edged up to 3.6%, remaining below the national rate of 4.4%. Despite signs of labor market softening nationally, Oklahoma continues to rank among the top states for job growth over the past 12 months.

Nationally, markets remain focused on inflation trends, labor conditions, and Federal Reserve policy. While growth has moderated, expectations for easing monetary conditions continue to support borrowing costs and broader economic confidence.

Household financial conditions remain supportive of continued consumer activity. The U.S. consumer delinquency rate eased further in the third quarter of 2025, declining to 2.72%, down from 2.77% in Q1 and remaining well below its long-term historical average of 3.06%. At the same time, U.S. households control a record $181.6 trillion in wealth, reflecting strong balance sheets despite higher interest rates and economic uncertainty. Given the outsized role consumers play in economic growth and state revenue, these trends help reinforce the stability seen in sales-driven tax streams and provide important context for Oklahoma’s steady revenue performance, even as broader economic growth moderates.

“Oklahoma’s revenue performance reflects balance and discipline in a shifting economic environment,” Treasurer Russ added. “Stable revenue and responsible fiscal management continue to provide a strong foundation for state and local governments as we move through 2026.”

The complete January 2026 Tax Revenue Report is available at treasurer.ok.gov, including breakdowns by tax category, sector, and month.