Oklahoma veteran taxes

Military retired pay in Oklahoma

Exempttax year 2025Sources 1, 2, 3

Oklahoma lets each individual exclude 100% of retirement benefits from any component of the Armed Forces of the United States, with no cap, age or income test, for tax year 2022 and later (68 O.S. § 2358(E); 2025 Form 511, Schedule 511-A line A4). For tax years 2006 through 2021 the exclusion was the greater of 75% of the benefits or $10,000.

Survivor Benefit Plan annuities

Check with the stateSources 1, 2

The Oklahoma Tax Commission’s 2025 Form 511 instructions and 68 O.S. § 2358(E) exclude retirement benefits received by an individual from any component of the Armed Forces, but do not say how Survivor Benefit Plan annuities paid to a surviving spouse or child are treated. The separate federal civil service exclusion names survivor benefits; the military one does not.

Property tax relief for disabled veterans

Exemption or creditSources 4, 5, 6

Oklahoma exempts the full fair cash value of the homestead of a head of household who was honorably discharged from active service in any branch of the U.S. Armed Forces or the Oklahoma National Guard and is certified by the U.S. Department of Veterans Affairs to have a 100% permanent disability sustained through military action or accident or resulting from disease contracted in service (Okla. Const. art. X, § 8E, as printed on Oklahoma Tax Commission Form 998). The veteran must be an Oklahoma resident and must qualify for the regular homestead exemption.

• Form 998 asks for a current VA benefits award letter certifying the 100% service-related disability or receipt of compensation at the 100% rate; the veteran must own and occupy the home on January 1, with the deed recorded by February 1.
• A rural homestead may include up to 160 acres; an urban homestead may not exceed 1 acre (68 O.S. § 2888).
• Veterans apply on Form 998 with the county assessor of the county where the property is located.

Vehicle registration for disabled veterans

Fee waiver or discountSources 7, 8, 9, 10

Oklahoma issues Disabled Veterans license plates to veterans with certification from the VA or the Armed Forces of a service-connected disability rating of 50% or more, or who were awarded a vehicle by the U.S. government or receive a VA automobile grant because of a service-connected disability or the loss of use of a limb or an eye, for no more than two vehicles with a rated carrying capacity of one ton or less (47 O.S. § 1135.2(B)(31)). These plates are exempt from the registration fees levied by 47 O.S. § 1132 and their total expense may not exceed $5; Service Oklahoma describes this as the disabled veteran rate of $5 plus applicable insurance and mailing fees.

• A surviving spouse who has not remarried (or whose remarriage ended by death, divorce or annulment), or who receives VA Dependency and Indemnity Compensation, may get the plate for one vehicle.
• Motor vehicle excise tax: an honorably discharged veteran certified as receiving compensation at the 100% rate for a permanent service-connected disability and registered with the Oklahoma Department of Veterans Affairs veterans registry is exempt on one vehicle in a consecutive three-year period (68 O.S. § 2105(16)).
• Service Oklahoma asks for a sales tax exemption number or C599 card from the Oklahoma Department of Veterans Affairs and says the discounted rate is not available for online renewals.