Retiring in Oklahoma: how your income is taxed
Oklahoma is fairly tax-friendly for retirees. On a typical retirement income it ranks #40 of 51 for the lowest state income tax.
The rules in Oklahoma
- Social Security: Social Security benefits are fully exempt from Oklahoma income tax.
- Pensions: Each person can exclude up to $10,000 a year of government and private retirement income combined, including 401(k) and IRA withdrawals. Federal civil service retirement is fully exempt, and military retirement has been fully exempt since 2022. A 2025 bill to raise the limit to $40,000 (HB 2190) did not advance, so $10,000 applies for 2026.
- 401(k), 403(b) and IRA withdrawals: 401(k), IRA and similar retirement-plan withdrawals count toward the same $10,000-per-person retirement exclusion as pensions. Withdrawals above the $10,000 limit are taxed at Oklahoma's regular rates.
- At 65 and older: Each filer 65 or older gets an extra $1,000 exemption when federal AGI is $15,000 or less ($25,000 on a joint return).
Calculate your Oklahoma retirement taxes
State income tax in Oklahoma: $805 a year
In Oklahoma, the 401(k)/IRA amount counts as IRA withdrawals, which don't qualify for the pension exclusion. Enter withdrawals from employer plans such as a 401(k) or 403(b) as pension.
In Oklahoma you'd pay about $805 in state income tax and $4,336 in federal income tax on $70,000 of retirement income, keeping $64,860 (7.3% total).
Oklahoma ranks #40 of 51 for the lowest state tax on this income. 19 states charge no state income tax on this income.
What retirees pay in Oklahoma
| Retirement income | State tax (single) | State tax (married) | Federal tax (single) |
|---|---|---|---|
| $24,000 Social Security, $12,000 401(k)/IRA | $0 | $0 | $0 |
| $30,000 Social Security, $20,000 pension, $20,000 401(k)/IRA | $805 | $0 | $4,336 |
| $40,000 Social Security, $40,000 pension, $50,000 401(k)/IRA, $10,000 other income | $3,505 | $2,509 | $19,812 |
Age 67 or older, 2026 rules including the federal senior deduction. For married couples, income is the household total and both spouses are 67 or older. State estimates apply Oklahoma's main exclusions and may differ for income-tested credits.
States with lower retirement taxes
Moving to Oklahoma in retirement?
Compare the tax on your Social Security, pension and 401(k)/IRA income, and typical living costs, with the state you'd leave. These are the states most households moving to Oklahoma come from (IRS migration data, 2022–2023).
- Texas to Oklahoma
- California to Oklahoma
- Arkansas to Oklahoma
- Kansas to Oklahoma
- Colorado to Oklahoma
- Florida to Oklahoma
Frequently asked questions
Does Oklahoma tax Social Security?
Not taxed. Social Security benefits are fully exempt from Oklahoma income tax.
Does Oklahoma tax pensions?
Partly taxed. Each person can exclude up to $10,000 a year of government and private retirement income combined, including 401(k) and IRA withdrawals. Federal civil service retirement is fully exempt, and military retirement has been fully exempt since 2022. A 2025 bill to raise the limit to $40,000 (HB 2190) did not advance, so $10,000 applies for 2026.
Does Oklahoma tax 401(k) and IRA withdrawals?
Partly taxed. 401(k), IRA and similar retirement-plan withdrawals count toward the same $10,000-per-person retirement exclusion as pensions. Withdrawals above the $10,000 limit are taxed at Oklahoma's regular rates.
Is Oklahoma a good state to retire for taxes?
For a single retiree with $30,000 Social Security, $20,000 pension, $20,000 401(k)/IRA, Oklahoma charges about $805 in state income tax, ranking #40 of 51 (lowest tax first).
Related
Sources: oklahoma.gov, oklegislature.gov, law.cornell.edu. Rules reviewed . Some 2026 amounts were not yet published or sources differed; confirm with the state revenue department.