Partly taxed
How Oklahoma taxes retirement income
Oklahoma does not tax Social Security. Each person can exclude up to $10,000 a year of retirement income from Oklahoma public systems, including the Teachers’ Retirement System, OPERS, and police and firefighter plans, plus federal civil service retirement.
Other retirement income, such as company pensions, other states’ public pensions and withdrawals from 401(k), 403(b) and IRA accounts, has its own exclusion. The combined exclusion is capped at $10,000 per person, so a retiree with both a TRS pension and IRA withdrawals cannot claim $10,000 for each. Military retirement pay is fully exempt.
Income above the exclusion is taxed at rates that top out at 4.5% from 2026, after a 2025 law cut the top rate and simplified the brackets.
Questions
Does Oklahoma tax TRS pensions?
Only above $10,000 a year per person. The first $10,000 is excluded.
Does Oklahoma tax Social Security?
No. Social Security is fully exempt.
Is military retirement taxed in Oklahoma?
No. Military retirement pay is fully exempt.