Updated October 16, 2026. Quick answer: Yes, unless you opt out. The form says: “State income tax withholding applies to the taxable part of these payments”. You can stop it on Form OK-W-4-P.
Oklahoma pension withholding at a glance
| Item | What the documents say |
|---|---|
| Is state withholding required on regular pension payments? | Yes, unless you write No Withholding on Form OK-W-4-P |
| Default rate if you give the payer no form | With no certificate the payer withholds as if you were married claiming three withholding allowances; no flat percent is published for periodic payments |
| Lump sum or one-time payment | Form OK-W-4-R covers nonperiodic payments and eligible rollover distributions: check No for no state withholding, or Yes and the payer withholds at 4.5% |
| Form to start, change or stop it | Form OK-W-4-P for periodic payments and Form OK-W-4-R for nonperiodic payments and rollovers, given to the payer |
| Changed for 2026? | No change stated; the OK-W-4-P read was created in August 2022 |
What the Oklahoma documents say
Oklahoma’s Tax Commission applies state withholding to the taxable part of periodic pension, annuity, profit-sharing, stock bonus plan and IRA payments. If you give the payer no certificate, the payer withholds as if you were married and claiming three withholding allowances. The form’s wording for this ends “claiming three withholding allowances, pursuant to OAC 710:90-1-13”.
To stop withholding on periodic payments you give the payer Form OK-W-4-P, not the Tax Commission, and write No Withholding on line 7. The same form changes allowances or adds an amount per pay period.
For a nonperiodic payment or an eligible rollover distribution you use Form OK-W-4-R, and the Commission says the tax is “withheld at the top marginal income tax rate of 4.5%”.
What the printed rate means in dollars
For a $50,000 nonperiodic payment if you answer Yes on Form OK-W-4-R: 4.5% of $50,000 is $2,250 (computed as $50,000 times 4.5%).
These are illustrations of the rate the state document prints, not a prediction of how your payer will calculate or what you will owe at filing.
What a mover should know
This page is about Oklahoma as a state of residence. An instruction line written for a nonresident or part-year filer is not the rule for a resident, and none of the documents read settles a part-year or two-state case, so check each state’s own rule. The federal side is the same everywhere; CMG’s federal 20% withholding on a pension lump sum page covers it, state tax withholding on IRA and 401(k) withdrawals in Oklahoma covers the account side, and state withholding on retirement withdrawals lists the other states checked.
What the documents do not say
- The documents read do not say what the payer withholds on a nonperiodic payment if you give it no Form OK-W-4-R.
Common mistakes
- Giving the payer a federal W-4P and assuming it also settles the state; check whether the state’s own form is needed.
- Assuming the answer for one state applies to another, or that state withholding settles the state tax owed at filing.
Related: state tax withholding on IRA and 401(k) withdrawals in Oklahoma, Oklahoma retirement taxes, whether Oklahoma taxes pensions, state withholding on retirement withdrawals, and retirement withholding calculator.
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Answer againSources
- Withholding Certificate for Periodic Pension or Annuity Payments (Form OK-W-4-P): https://www.opprs.ok.gov/wp-content/uploads/2025/01/OK-4-W-P-1.pdf
- Withholding Certificate for Nonperiodic Payments and Eligible Rollover Distributions (Form OK-W-4-R): https://aem-prod.oklahoma.gov/content/dam/ok/en/trs/documents/forms/OK-W-4-R.pdf
- IRS Tax Topic 413, Rollovers from retirement plans: https://www.irs.gov/taxtopics/tc413
Sources: the primary documents linked above, read on October 16, 2026. General information, not tax advice. Your own facts decide the outcome, and a tax professional or the state agency itself is the right place to confirm anything consequential.