How OKLAHOMA Taxes Retirees

An episode of the The Josh Scandlen Podcast podcast, hosted by Josh Scandlen, titled "How OKLAHOMA Taxes Retirees" was published on July 1, 2019 and runs 10 minutes.

July 1, 2019 ·10m · The Josh Scandlen Podcast

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Summary

Oklahoma is very favorable tax-wise for retirees.  For some reason Kiplinger's has the Sooner state as not very tax friendly. I don't get it.  Oklahoma doesn't tax Social Security first of all. On top of that, Oklahoma allows a $10k exemption of income, per person, from various retirement accounts. And Military retirement recipients can exclude 75% of their benefits from taxes too.  So, if you have large Social Security, military pension and some retirement income, you won't pay much in terms of income tax. Sales tax is quite high in Oklahoma, ranked #6 highest in the nation when you include both state and locality sales tax.  However, property taxes are among the lowest in the nation. In fact, when you factor the actual dollars that the state collects in property tax, Oklahoma is the second lowest property tax in the country.  All in all, lots of income exemptions, incredibly low property tax can offset the high sales tax to make Oklahoma quite favorable for retirees. 

Episode Description

Oklahoma is very favorable tax-wise for retirees. For some reason Kiplinger's has the Sooner state as not very tax friendly. I don't get it.

Oklahoma doesn't tax Social Security first of all. On top of that, Oklahoma allows a $10k exemption of income, per person, from various retirement accounts. And Military retirement recipients can exclude 75% of their benefits from taxes too.

So, if you have large Social Security, military pension and some retirement income, you won't pay much in terms of income tax.

Sales tax is quite high in Oklahoma, ranked #6 highest in the nation when you include both state and locality sales tax.

However, property taxes are among the lowest in the nation. In fact, when you factor the actual dollars that the state collects in property tax, Oklahoma is the second lowest property tax in the country.

All in all, lots of income exemptions, incredibly low property tax can offset the high sales tax to make Oklahoma quite favorable for retirees.