Updated October 5, 2026. Quick answer: Yes. Oklahoma taxes interest and dividends: “Residents are taxed on all income from non-business interest and dividends,” at graduated rates with a top rate of 4.75% for 2025 and 4.5% for 2026. Other states’ bond interest is taxable; U.S. obligation interest is excludable.
How Oklahoma treats dividends and interest
| Item | What the documents say |
|---|---|
| Treatment | Taxed on the graduated schedule |
| 2024 and 2025 | “For tax years 2024 and 2025, a tax is hereby imposed” at, for a single filer, “0.25% tax on first $1,000.00 or part thereof,” then 0.75%, 1.75%, 2.75% and 3.75%, and “4.75% tax on the remainder.” |
| 2026 | Section 2355(D) prints “0% tax on first $3,750.00 or part thereof,” for a single filer, then 2.5% and 3.5%, and “4.5% tax on the remainder.” |
| Other states’ bonds | Income from another state’s bonds that “is exempt from federal taxation is subject to Oklahoma income tax.” “the total of such income shall be added to Federal AGI.” |
| Oklahoma bonds | Bonds of the State and listed Oklahoma authorities are exempt, as is “Income from local Oklahoma governmental obligations issued after July 1, 2001,” except obligations financing projects for nonprofit corporations |
| U.S. obligations | Schedule 511-A excludes interest on U.S. government obligations, but “Interest from entities such as Federal National Mortgage Association (FNMA)” and GNMA does not qualify |
A $20,000 example
Taxable dividends and interest of $20,000 taxed wholly at the 2025 top rate, 4.75%, would add $20,000 x 4.75% = $950; at the 2026 top rate, 4.5%, $20,000 x 4.5% = $900. Income in lower brackets is taxed at lower rates.
What changes in 2026
Section 2355(D) prints a new 2026 schedule with a 0% first bracket ($3,750 single, $7,500 joint) and a top rate of 4.5%, down from 4.75%; section 2355(E) ties further reductions to State Board of Equalization certification.
Federal rules
The state’s treatment sits on top of the federal one. Qualified dividends and ordinary dividends are sorted out on the Form 1099-DIV, as the site explains in Box 1a and 1b: ordinary versus qualified dividends, and interest is reported as covered in 1099-INT Box 1. The IRS explains the federal side in Topic no. 403, Interest Received and Topic no. 404, Dividends.
Related: whether Oklahoma taxes capital gains, whether Oklahoma taxes pensions, how Oklahoma taxes retirement income, dividends and interest tax by state, and how tax-exempt interest is reported.
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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
- Oklahoma Statutes Title 68, section 2355 (Tax imposed: Classes of taxpayers), extract of the Title 68 file: https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os68.rtf
Sources: the primary documents linked above, read on October 5, 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.