The legislation adopted in special session, House Bill 1010xx, also increased gross production tax rates. Oklahoma's previous rate on oil and gas production allowed new wells to operate at a 2-percent rate for the first three years of production. Now, those wells and new ones beginning production will be taxed at 5 percent. Oklahoma Sales Tax. The state sales tax rate in Oklahoma is 4.50%. Alone, that would be the 15h-lowest rate in the country. However, in addition to that rate, Oklahoma has some of the highest local sales taxes in the country, with combined city and county rates as high as 7%. With Mega Millions fever sweeping the country, today we released a short report on state lottery withholding taxes. Some highlights: Lottery winnings of $600 or less are not reported to the IRS; winnings in excess of $5,000 are subject to a 25 percent federal withholding tax. When jackpot winners file their taxes, they find out …