Active Duty Military Pay State Income Tax Exemption
100% of active duty military compensation is deductible from Oklahoma taxable income.
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Apply directly through the official Oklahoma agency.
About this benefit
Eligibility
Oklahoma resident serving as an active member of any component of the U.S. Armed Forces.
Covers
100% of military salary/compensation is deductible from Oklahoma taxable income.
How to apply
Claimed on Oklahoma state tax return.
Verified against official source
Last checked 2026-05-05 against oklahoma.gov. Always confirm current rates and rules with the Oklahoma state agency before applying.
Other Oklahoma Tax Benefits
Military Retirement Pay State Income Tax Exemption
100% of military retirement pay is exempt from Oklahoma state income tax.
Varies by retirement pay (~$1,350/yr on $30k)
Military Survivor Annuity State Tax Exemption
Survivor annuities from U.S. Armed Forces are exempt from Oklahoma state income tax.
100% Disabled Veteran Property Tax Exemption
Full exemption from property taxes on the homestead for 100% permanently disabled veterans.
Full property tax exemption ($1,500-$2,500+/yr)
100% Disabled Veteran Sales Tax Exemption
Exemption from Oklahoma state sales tax on up to $25,000 in purchases per year for 100% disabled veterans.
Up to $1,125/yr in sales tax savings
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