Oklahoma could soon join the other 33 states that honor America’s military by not taxing their retirement pay, following the Senate’s unanimous approval of Senate Bill 401. The measure is authored by Air Force veteran Sen. Adam Pugh, R-Edmond, and Sen. Brenda Stanley, vice chair of the Senate Veterans and Military Affairs Committee.
Currently, Oklahoma’s approximately 36,000 retired service members can deduct the greater of $10,000, or 75% of their retirement income, from state income tax. Of surrounding states, only New Mexico and Colorado tax military pensions.