Neural oscillatory activities in different frequency bands are known to reflect different cognitive functions. The current study investigates neural oscillations involved in tactile novelty processing, in particular how physically different digits of the hand may be categorized as being more or less similar to one another. Time-frequency analyses were conducted on EEG responses recorded from a somatosensory mismatch protocol involving stimulation of the 1st, 3rd, and 5th digits. The pattern of tactile stimulation leveraged a functional category boundary between the 1st digit (thumb) and the other fingers. This functional category has been hypothesized to derive, in part, from the way that the hand is used to grasp and haptically explore objects. EEG responses to standard stimuli (the 3rd digit, probability of 80%) and two deviant stimuli (1st digit as across-boundary deviant and 5th digit as within-boundary deviant, probability of 10% each) were examined. Analyses of EEG responses examined changes in power as well as phase information. Deviant tactile stimuli evoked significantly greater theta event-related synchronization and greater phase-locking values compared to the corresponding control stimuli. The increase in theta power evoked by the contrast of the 3rd digit and the 1st digit was significantly larger than for the contrast between the 3rd and 5th digits. Desynchronization in the alpha and beta bands was greater for deviant than control stimuli, which may reflect increased local cortical excitation to novel stimuli, modulated by top-down feedback processes as part of a hierarchical novelty detection mechanism. The results are discussed in the context of the growing literature on neural processes involved in the generation and maintenance of body representations.