State retirement taxes · 2026
Does Oklahoma tax retirement income?
Short answer: Partly. Oklahoma does not tax Social Security benefits. Up to $10,000 per person of pension and IRA income is excluded.
What’s taxed in Oklahoma
2026 rules.
- Social SecurityNot taxed
- Oklahoma does not tax Social Security benefits.
- PensionsPartly taxed
- Up to $10,000 per person of pension and IRA income is excluded; federal CSRS annuities paid instead of Social Security are fully exempt.
- IRA & 401(k) withdrawalsPartly taxed
- IRAs, 401(k), 403(b), 457 plans and lump sums count toward the same $10,000-per-person exclusion; the excess is taxed.
- Military retirement payNot taxed
- Military retirement pay is 100% excluded.
- Income tax rate4.5% top
- From 2026, four brackets: 0% on the first $3,750 single ($7,500 joint), then 2.5%, 3.5% and 4.5% above $7,200 ($14,400 joint) — down from a 4.75% top rate.
Does Oklahoma tax Social Security?
Oklahoma does not tax Social Security benefits.
Social Security benefits included in federal AGI are subtracted, with no limit.
Your federal return is a separate question — see how much of your benefit the IRS taxes with the taxable Social Security calculator.
Are pensions taxed in Oklahoma?
Up to $10,000 per person of pension and IRA income is excluded; federal CSRS annuities paid instead of Social Security are fully exempt.
Federal CSRS annuities paid in lieu of Social Security are 100% excluded (also the FERS annuity supplement and the CSRS part of mixed annuities; regular FERS is not). Oklahoma public retirement and federal civil service pensions, and private “other retirement income”, share a combined exclusion of up to $10,000 per person. The income must be in your own name.
Public vs. private pensions: Public and private pensions share the same $10,000-per-person cap.
Are IRA and 401(k) withdrawals taxed in Oklahoma?
IRAs, 401(k), 403(b), 457 plans and lump sums count toward the same $10,000-per-person exclusion; the excess is taxed.
Each person may exclude up to $10,000, but not more than the amount included in federal AGI.
Required minimum distributions (RMDs) are IRA and 401(k) withdrawals, so the same rules apply. Estimate your RMD.
Is military retirement pay taxed in Oklahoma?
Military retirement pay is 100% excluded.
What is Oklahoma’s income tax rate?
4 brackets, topping out at 4.5%.
From 2026, four brackets: 0% on the first $3,750 single ($7,500 joint), then 2.5%, 3.5% and 4.5% above $7,200 ($14,400 joint) — down from a 4.75% top rate. Not indexed. Automatic 0.25-point cuts can follow revenue certifications, but the earliest possible cut is 2028.
2026 brackets. Each rate applies to taxable income above the amount shown.
| Single | Married, joint | Rate |
|---|---|---|
| $0 | $0 | 0% |
| $3,750 | $7,500 | 2.5% |
| $4,900 | $9,800 | 3.5% |
| $7,200 | $14,400 | 4.5% |
Standard deduction and exemptions
Standard deduction: $6,350 single or married filing separately, $9,350 head of household, $12,700 joint. Personal exemption: $1,000 each. Oklahoma starts from federal AGI, so the federal $6,000 senior deduction does not carry over.
What tax breaks do seniors get in Oklahoma?
An extra $1,000 exemption for each filer 65+ if federal AGI is $15,000 or less single, $25,000 joint, $12,500 separate or $19,000 head of household. The Sales Tax Relief Credit helps low-income households. The property “senior freeze” is a separate program.
What changed for 2026?
HB 2764 (2025) cut the top rate to 4.5% and reduced six brackets to four from 2026. HB 2968 (2026), which would have raised the $10,000 exclusion to $20,000, did not pass. 2026 laws raised the caregiver credit and exempt gambling losses from the itemized-deduction cap from 2027.
2026 rates are official (HB 2764); exclusions come from the 2025 Form 511 packet.
How Oklahoma compares with its neighbors
Thinking of moving across the line? Here’s how each bordering state treats retirement income in 2026.
- OklahomaThis pageFriendlySocial Security Not taxedTop rate: 4.5% top
- ArkansasFriendlySocial Security Not taxedTop rate: 3.7% top
- ColoradoVery friendlySocial Security Partly taxedTop rate: 4.4% flat
- KansasFriendlySocial Security Not taxedTop rate: 5.58% top
- MissouriFriendlySocial Security Partly taxedTop rate: 4.7% top
- New MexicoLess friendlySocial Security Partly taxedTop rate: 5.9% top
- TexasTax-free retirement incomeSocial Security Not taxedTop rate: None
State tax is half the picture — check the federal side
Oklahoma retirement tax questions
Is Oklahoma tax-friendly for retirees?
We rate Oklahoma “Friendly” for 2026. Oklahoma does not tax Social Security benefits. Up to $10,000 per person of pension and IRA income is excluded. The top income tax rate is 4.5%.
Are required minimum distributions (RMDs) taxed in Oklahoma?
RMDs are withdrawals from IRAs and 401(k)-type plans, so they follow Oklahoma’s rules for those accounts. IRAs, 401(k), 403(b), 457 plans and lump sums count toward the same $10,000-per-person exclusion; the excess is taxed.
Is military retirement pay taxed in Oklahoma?
No. Military retirement pay is 100% excluded.
What is Oklahoma’s income tax rate for 2026?
From 2026, four brackets: 0% on the first $3,750 single ($7,500 joint), then 2.5%, 3.5% and 4.5% above $7,200 ($14,400 joint) — down from a 4.75% top rate. Not indexed. Automatic 0.25-point cuts can follow revenue certifications, but the earliest possible cut is 2028.
Sources for Oklahoma
Primary sources only. We re-check them whenever an agency publishes new figures.
- State
- State
- State
- State
Did this answer your question?