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How Does Oklahoma Tax Retirement Income in 2026? (The 4.5% Answer — and Falling)

Clear Money Guide

What this state guide covers

A quick view of the questions, practical details and source notes below.

The HB 2764 correction (4.5%, and falling on autopilot)
How Oklahoma taxes retirement income (statute-cited)
Probate: a statutory commission and a $50,000 affidavit
Is Oklahoma a good state to retire in for taxes?

Comparison tables scroll horizontally on smaller screens.

2026 edition · statute-cited · part of Clear Money Guide’s 51-state retirement tax series. This guide covers state taxes on retirement income and estate transfers; property and sales taxes vary by county and are outside its scope.

Updated July 24, 2026. Quick answer: Oklahoma’s top rate falls to 4.5% for tax year 2026 under HB 2764 (signed May 28, 2025), which also consolidated the bracket structure and wired in automatic quarter-point cuts — triggered by revenue growth — pointing the rate toward zero over time. Social Security is fully exempt, military retirement is 100% exempt (TY2022+), and other retirement income — government pensions and private qualified plans including 401(k)/IRA distributions — gets a $10,000-per-person exclusion before the graduated rates apply. The estate tax was repealed in 2010; there is no inheritance tax.

The HB 2764 correction (4.5%, and falling on autopilot)

Guides quoting Oklahoma’s top rate at 4.75% are a year behind: HB 2764 cut it to 4.5% starting TY2026 and consolidated the old six-bracket clutter. The law’s distinctive feature is its trigger: further 0.25-point cuts fire automatically when revenue benchmarks are met, meaning Oklahoma’s rate is scheduled to ratchet down without further votes. Combined with the $10,000 exclusion and exempt Social Security, a typical retiree couple’s effective Oklahoma rate lands well under 2% — while stale content keeps them comparing against figures from two rate regimes ago.

How Oklahoma taxes retirement income (statute-cited)

Income taxGraduated, top rate 4.5% for TY2026 (HB 2764; automatic 0.25-point trigger cuts toward zero)
Social SecurityNot taxed (fully exempt to the federally taxable extent)
Pension / 401(k) / IRA$10,000/person exclusion for qualifying retirement income (government pensions and private qualified plans); taxable above
Military retirement100% exempt (TY2022+; previously the greater of 75% or $10,000)
Estate / inheritance taxNone — estate tax repealed 2010

Probate: a statutory commission and a $50,000 affidavit

Personal-representative commissions are statutory (58 O.S. §527): 5% of the first $1,000; 4% of the next $5,000; 2.5% of everything above $6,000 of the estate accounted for, plus extraordinary-service allowances; attorney fees are court-allowed and reasonable. Small estates: up to $50,000 passes by affidavit (58 O.S. §393, 10-day wait, no PR appointed), and summary administration is available for estates up to $300,000. Context: probate cost by state · small-estate limits by state.

What the tax picture means for your own accounts

A state guide can set out how the rules treat retirement income in general, but not how they land on your particular mix of pensions, withdrawals and savings, and an adviser can work that through with you.

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Is Oklahoma a good state to retire in for taxes?

Quietly competitive and improving by statute: exempt Social Security, full military exemption, a $10,000-per-person cushion, a 4.5% top rate that cuts itself, and no death taxes. Against Texas next door, the practical gap for a modest-income retiree is small and shrinking — and Oklahoma’s 2.5% PR commission on probate estates argues, as everywhere with a schedule, for beneficiary designations on the big accounts. Watch the triggers: if revenue cooperates, this page’s rate table will keep revising downward.

Does Oklahoma tax Social Security? All 51 jurisdictions, 202643 do not tax Social Security at any income level. 8 tax it only above an income or age limit. Oklahoma is in the first group.Does Oklahoma tax Social Security? All 51jurisdictions, 202643 do not tax Social Security at any incomelevel. 8 tax it only above an income or agelimit.Oklahoma is in the first group.Not taxed at any income (43)Taxed only above a limit (8)ALAKAZARCACOCTDEDCFLGAHIIDILINIAKSKYLAMEMDMAMIMNMSMOMTNENVNHNJNMNYNCNDOHOKORPARISCSDTNTXUTVTVAWAWVWIWYPostal abbreviations, alphabetical. TheDistrict of Columbia is counted as ajurisdiction, which is why the total is 51 andnot 50.Counted from Clear Money Guide’s 2026 51-jurisdictionretirement-tax table, where every row carries its statutecitation. Table read 2026-08-17.
Oklahoma is one of 43 jurisdictions that do not tax Social Security at any income level in 2026. The other 8 exempt benefits only up to an income or age limit. Full rules and statutes: the 51-state table.

Oklahoma vs. common alternatives

StateSocial SecurityPension / 401(k) / IRAEstate taxInheritance tax
OklahomaNot taxed$10,000/person exclusion; 4.5% top rate aboveNone (repealed 2010)None
TexasNot taxedNot taxed (no income tax)NoneNone
ArkansasNot taxed$6,000/person exemption; 3.9% top rate aboveNoneNone
KansasNot taxedPublic pensions exempt; private/401(k)/IRA fully taxableNoneNone

Comparison rows summarize general rules; see our 51-state retirement tax table for statute-cited detail.

Considering a Roth conversion? The converted amount is taxed as ordinary income in the year you convert, and Oklahoma may treat it differently from the retirement income above — see how all 51 jurisdictions tax Roth conversions.

Finding a financial advisor in Oklahoma

Per the SEC’s July 2026 Investment Adviser roster, Oklahoma has 85 SEC-registered advisory firms (#31 nationally) managing $97.2 billion (#35 by AUM). Full breakdown: Oklahoma advisor statistics. Reviewing fee structures: fee-drag calculator.

What probate costs in Oklahoma

Oklahoma uses a hybrid standard — a statutory ceiling or floor with reasonableness applied inside it — so the fee has a bound but not a fixed number. Oklahoma runs two routes: a $50,000 affidavit (58 O.S. § 393) and summary administration up to $300,000 (58 O.S. § 245(A)(1), as amended by HB 2650 in 2026). The summary-administration route does reach real property: § 245 requires the petition to state “the legal description of all real property owned by the decedent in Oklahoma”. Full detail with the governing statute, the court filing fee and the threshold: Oklahoma probate cost. To price a specific estate, use the probate cost calculator.

Cite or share this guide

Suggested citation: Clear Money Guide, “Oklahoma Retirement Taxes (2026 edition),” statute-cited; clearmoneyguide.com/oklahoma-retirement-taxes/. Free to cite with attribution and a link. Data verified July 23–24, 2026 against state statutes, session laws, and revenue-department guidance.

Primary sources

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