Bill > HB1927

This bill modifies Oklahoma's tax code to expand the tax exemption for retirement income. Specifically, it amends the existing law to increase the retirement income tax exemption, allowing 100% of retirement benefits to be exempt from state income tax starting in the 2026 tax year. The bill applies to retirement benefits from various sources, including civil service, public employees' retirement systems, teachers' retirement, law enforcement retirement systems, and other specified retirement plans. This change means that retirees will no longer be limited to a specific dollar amount of tax-free retirement income, as was previously the case with limits of $5,500 in 2004, $7,500 in 2005, and $10,000 from 2006 through 2025. The bill will take effect on November 1, 2025, providing a significant tax benefit for retirees in Oklahoma by completely exempting retirement income from state taxation beginning in 2026.

Budget and Finance

http://www.oklegislature.gov/BillInfo.aspx?Bill=hb1927&Session=2600