Bill > HB2194

This bill proposes to amend Oklahoma state tax law by increasing the retirement income tax exemption from $10,000 to $20,000 for the 2026 tax year and all subsequent tax years. Specifically, the bill modifies Section 2358 of the Oklahoma tax code to expand the exemption for retirement benefits received from various public retirement systems, including civil service, public employees, teachers, law enforcement, firefighters, and other municipal and county retirement systems. The increased exemption means that individuals receiving retirement benefits from these systems can exclude up to $20,000 from their taxable income, up from the previous limit of $10,000. This change is designed to provide additional tax relief for retirees by reducing the amount of their retirement income subject to state income tax. The bill is set to become effective on November 1, 2025, which means it will apply to tax returns filed for the 2026 tax year and beyond.

Budget and Finance

http://www.oklegislature.gov/BillInfo.aspx?Bill=hb2194&Session=2600