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Tax Exemptions

Property Tax

Oklahoma law creates an exemption for certain Veterans from property tax. The exemption applies to certain injured veterans and surviving spouse of those veterans. The exemption would be for the full fair cash value of the homestead. Eligibility requirements include:

  • Honorably discharged from a branch of the Armed Forces or the Oklahoma National Guard
  • Oklahoma resident
  • 100% permanent disabled-service connected
  • Disability must have been sustained through military action or accident, or result from a disease contracted while in active service
  • The disability must be certified by U.S. Department of Veterans Affairs (ODVA can help you obtain this certification letter)

Oklahoma Income Tax

One hundred percent (100%) of income received as salary or compensation in any form by an Oklahoma resident as a member of any component of the Armed Forces of the United States can be deducted from taxable income.  The Oklahoma Tax Commission has the authority to grant an extension to any member of the United States Armed Forces when filing is impractical or impossible.  See 68 O.S. 2358, E(5)(b).

Exemption For Sales Tax

Sales of tangible personal property or services to persons who are residents of Oklahoma and have been honorably discharged from active service in any branch of the Armed Forces of the United States or Oklahoma National Guard and who have been certified by the United States Department of Veterans Affairs or its successor to be in receipt of disability compensation at the one-hundred-percent rate and the disability shall be permanent and have been sustained through military action or accident or resulting from disease contracted while in such active service.

Exemption For Retirement Benefits

Retirement benefits received by an individual from any component of the Armed Forces of the U.S. shall be exempt from taxable income in an amount not to exceed the greater of 75% of such benefits or $10,000.

Benefit Type: