Does Oklahoma tax military retirement pay?
Not taxed
No. From tax year 2022 Oklahoma lets each individual exclude 100% of retirement benefits from any component of the Armed Forces.
In the state's own words
Copied word for word from the official document linked below each quote:
“Beginning in Tax Year 2022, each individual may exclude 100% of their retirement benefits. The retirement benefits must be from any component of the Armed Forces of the United States.”
Other retirement income in Oklahoma
Partly. Oklahoma lets each person exclude up to $10,000 of retirement benefits from the sources the Tax Commission lists, and 100% of federal civil service (CSRS) benefits paid in lieu of Social Security. The Oklahoma pension page has the details, and the Oklahoma Social Security page covers Social Security. No. The Social Security in your federal adjusted gross income is subtracted on the Oklahoma return.
Before you file or move
This page is about state income tax only. Your federal return has its own rules for military retired pay, and VA disability compensation is a separate benefit from retired pay. State rules change, and the details (age, years, which kinds of pay qualify, survivor benefits) matter. Check with the Oklahoma Tax Commission before you file or move.
Other states in the same group
Check our work
The answer above comes from this document. Follow the link and compare.
- Help Center: Individuals Income TaxOklahoma Tax Commission. Read on November 13, 2026.