Biz Write-Offs LogoBiz Write-Offs

Military retirement pay in Oklahoma

Varies

Does Oklahoma Tax Military Retirement Pay?

Short answer: No. Oklahoma fully exempts military retired pay from state income tax (100% since tax year 2022). Other retirement income: Each taxpayer may exclude up to $10,000 of retirement benefits, including pensions, 401(k), 403(b), 457, and IRA distributions (government and private plans share the $10,000 limit).

Military retired pay is taxable federally; VA disability compensation isn't taxed federally or by any state.

Records to keep: Keep your state return, W-2s and 1099s (1099-R, SSA-1099), and any state credit worksheets. Check your state revenue department's current-year instructions before you file.