State-by-State Guide to Taxes on Retirees
Tool | November 2019

State-by-State Guide to Taxes on Retirees


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The Bottom Line
Flag of Oklahoma

Mixed Tax Picture

The Sooner State does not tax Social Security benefits or Civil Service Retirement System benefits. Residents can exclude up to $10,000 per person ($20,000 per couple) of other types of retirement income. But Oklahoma has one of the highest combined sales tax rates in the nation, at an average of 8.94%.

State Sales Tax

4.5% state levy. Localities can add as much as 6.5%, and the average combined rate is 8.94%, according to the Tax Foundation.

Income Tax Range

Low: 0.5% (on up to $1,000 of taxable income for single filers and up to $2,000 for married joint filers)

High: 5% (on taxable income over $7,200 for single filers and over $12,200 for married joint filers)

Effective tax rate: 4.24% for single filers, 4.74% for joint filers

Social Security

Benefits are not taxed.

Exemptions for Other Retirement Income

Up to $10,000 of federally-taxed income from private, federal government, and designated Oklahoma state and local government retirement plans is exempt. In addition, federally taxed income from the federal Civil Services Retirement System in lieu of Social Security is fully exempt.

Up to 75% of federally-tax income from a military retirement plan or $10,000, whichever is greater, is exempt.

Railroad Retirement benefits are fully exempt.

Property Taxes

In Oklahoma, residents pay an average of $974 in taxes per $100,000 of assessed home value.

Tax breaks for seniors: Residents 65 or older who have an income of $12,000 or less can qualify for a $200 rebate on their property taxes. Senior citizens with household income income of $69,400 or less may qualify for a valuation freeze on their primary residence.

Vehicle Taxes

Registration: 3.25% excise tax when title is transferred.

Inheritance and Estate Taxes