Updated October 16, 2026. Quick answer: Oklahoma lets a resident exclude up to $10,000 of retirement benefits, but not more than the amount included in federal AGI, and the Form 511 packet lists “An employee annuity under IRC Sec. 403 (a) or (b)” and “An eligible deferred compensation plan under IRC Sec. 457” as qualifying sources; the packet never prints the literal strings 403(b) or 457(b).
State retirement-income forms, line by line: Oklahoma Schedule 511-A.
Oklahoma at a glance
| Item | What the documents say |
|---|---|
| How the state treats 403(b) and 457(b) withdrawals | Yes, qualifying 403(b) annuities and Section 457 plans are listed by Internal Revenue Code section |
| Do the state’s documents name these plans? | The documents read name neither 403(b) nor 457(b) plans |
| Retirement exclusion or credit | Other Retirement Income exclusion of up to $10,000, plus a separate government or federal civil service retirement exclusion |
| Public-employee pension rule | Yes, a separate Oklahoma government or federal civil service retirement exclusion exists |
| Rate in the documents read | Top 2025 bracket for single filers: $153.50 plus 4.75% over $7,200 |
| Changed for 2026? | The documents read describe no 2026 change |
What the Oklahoma documents say
The packet says “Each individual may exclude their retirement benefits up to $10,000, but not to exceed the amount included in the Federal AGI”. The 403 and 457 entries above appear in the packet’s list of plans from which those benefits can come, and the benefits must satisfy the Internal Revenue Code requirements for the plan.
The Tax Commission’s rate page prints the single-filer top bracket as “Pay $153.50 plus 4.75% over $7,200”.
Withholding and federal tax
Whether a state withholds is a separate rule: see state withholding on retirement withdrawals. Federal rules: 403(b) withdrawal rules and 457(b) withdrawal rules. The IRS says pension and annuity payments from a qualified employer plan have “all or some portion of the amounts you receive may be taxable”.
What the documents do not say
- The packet identifies the plans by Internal Revenue Code section and never prints 403(b) or 457(b) in that form.
- The line 6 amount cannot exceed $10,000 minus any amount claimed on the government retirement line.
- The documents are the 2025 forms.
Common mistakes
- Assuming Oklahoma’s rule for a 401(k) or IRA also covers a 403(b) or 457(b): read whether its documents name the plan.
Related: whether Oklahoma taxes 401(k) and IRA withdrawals, Oklahoma retirement taxes, whether Oklahoma taxes pensions, 403(b) withdrawal rules, 457(b) withdrawal rules, and state withholding on retirement withdrawals.
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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
- IRS Tax Topic 410, Pensions and annuities: https://www.irs.gov/taxtopics/tc410
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.