Updated October 4, 2026. Quick answer: Yes, with a $10,000 exclusion. Oklahoma’s 2025 Form 511 packet says “Each individual may exclude their retirement benefits up to $10,000”, counting benefits from plans under Section 401, an “individual retirement account, annuity or trust or simplified employee pension”. Anything above $10,000 stays taxable.
State retirement-income forms, line by line: Oklahoma Schedule 511-A.
Inherited an IRA? What the state’s own documents say about taxing those withdrawals: Oklahoma tax on inherited IRA withdrawals.
Hold a 403(b) or 457(b)? What the state’s own documents say about taxing those withdrawals: does Oklahoma tax 403(b) and 457(b) withdrawals.
Withdrawing from an IRA or 401(k)? Whether the state withholds tax from it, from its own documents: Oklahoma tax withholding on IRA and 401(k) withdrawals.
Contributing to an HSA? How the state taxes it, from its own tax documents: Does Oklahoma tax HSA contributions?.
What Oklahoma does with 401(k) and IRA withdrawals
The packet says that if the full amount is claimed on line 5, “no additional amount is allowed on Schedule 511-A, line 6”. The Tax Commission’s rate page gives the top bracket as “Pay $153.50 plus 4.75% over $7,200” for a single filer; no age requirement for the exclusion is printed.
| Item | What the documents say |
|---|---|
| Treatment | Taxable, with an exclusion of up to $10,000 of retirement benefits per individual |
| State rates | Graduated, six brackets to a 4.75% top rate; $153.50 plus 4.75% over $7,200 (single) |
| Source | Oklahoma Tax Commission, 2025 Form 511 packet and tax rates page |
A $40,000 withdrawal
Of a $40,000 withdrawal, up to $10,000 is excluded, leaving $30,000 (computed as $40,000 minus $10,000) in Oklahoma income. The exclusion is $10,000 in total, so it shrinks if you also claim the government-retirees exclusion on line 5.
What changes in 2026
The documents read print no 2026 rate or exclusion change.
Federal rules
The state’s treatment sits on top of the federal one. The IRS explains the federal tax on these withdrawals in Publication 590-B, Distributions from Individual Retirement Arrangements and Publication 575, Pension and Annuity Income.
Related: whether Oklahoma taxes pensions, how Oklahoma taxes retirement income, whether Oklahoma taxes Roth conversions, and the state-by-state table of 401(k) and IRA withdrawal tax.
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Answer againSources
- 2025 Oklahoma Resident Individual Income Tax Forms and Instructions (Form 511 packet): https://oklahoma.gov/content/dam/ok/en/tax/documents/forms/individuals/current/511-Pkt.pdf
- Pay Taxes (2025 Tax Rates): https://oklahoma.gov/tax/individuals/pay-taxes.html
Sources: the primary documents linked above, read on October 4, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the plan administrator or the agency itself is the right place to confirm anything consequential.