Bill > HB1391

This bill modifies Oklahoma's income tax law regarding retirement benefit exemptions by increasing the amount of retirement benefits that can be exempted from taxable income from $10,000 to $20,000 for the 2025 tax year and subsequent years. The bill specifically updates language in Section 2358 of the Oklahoma tax code, which deals with adjustments to arrive at Oklahoma taxable income and Oklahoma adjusted gross income. The change applies to retirement benefits received from various sources including civil service, public employee retirement systems, law enforcement retirement systems, and other specified retirement plans. The new provision will allow individuals to exclude up to $20,000 in retirement benefits from their taxable income starting in the 2025 tax year, effectively providing a larger tax break for retirees compared to the previous $10,000 exemption. The bill will become effective on November 1, 2025, giving taxpayers and tax authorities time to prepare for the new exemption amount.

Budget and Finance

http://www.oklegislature.gov/BillInfo.aspx?Bill=hb1391&Session=2600