OKLAHOMA CITY – Rep. Kevin McDugle, R-Broken Arrow, today celebrated the signing of a bill that grants Oklahoma veterans a full tax exemption on retirement benefits they receive as a result of their service.
Senate Bill 401 modifies the income tax exemption granted to military retirement benefits. The measure exempts all retirement benefits received by an individual from any component of the Armed Forces of the United States from the income tax beginning in tax year 2022 and every year thereafter.
“I am excited that we have finally passed a bill exempting veteran retirement benefits from the income tax here in Oklahoma,” McDugle said. “My office received a number of calls from veterans across the country saying they would move back to Oklahoma if a bill like this got passed. 61% of our veterans have spouses with a combined income average of $160,000. Due to that, each family that moves back to Oklahoma will increase revenue received by our state and balance out the benefit that we are giving to our veterans. This is a win for everyone involved, and I’m proud that I could help spearhead this effort in the House.”
Before passage of the bill, veterans of the U.S. Armed Forces received tax exemptions for up to 75% or $10,000 of the retirement benefits they received from any component of the U.S. Armed Forces. Gov. Kevin Stitt signed SB401 on May 26, 2022.
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