OK 8th worst for retired veterans, lawmaker wants to change that

OKLAHOMA CITY (KOKH) — Oklahoma is home to more than 36,000 retired veterans but one representative wants to make the state more inviting for them.

Oklahoma Senator Adam Pugh wants to join 30 other states in eliminating income tax from veteran's retirement.

Pugh says Oklahoma has one of the highest active and retired military populations in the United States but is also one of the least tax-friendly for military retirees.

“A majority of states already exempt military retirement from state income, and if Oklahoma wants to truly be a pro-veteran and military-friendly state, we need to stop taxing the pensions of these brave men and women,” Pugh said. “Having these heroes retire in our great state will bring so much to our local communities, economy and workforce. Let’s join the 30 other states who are already honoring our military veterans by allowing them to keep all of their retirement that they sacrificed so much for.”

Presently, retired military members in Oklahoma can deduct either $10,000 or 75% of their retirement income from state income tax, whichever is greater.

Oklahoma would join neighboring states Arkansas, Kansas, and Missouri in not taxing the retirement income of retired servicemembers.

“These retirees bring extensive high-level work experience from their military careers that could help meet the state’s needs in numerous industries. These are engineers, aviators, communication specialists and other professionals that companies are desperately seeking,” Pugh said. “The jobs are already here—we just need the highly trained professionals to fill them, and I think our military retirees can meet that demand and help attract more companies to Oklahoma.”

SB 401 will be considered when the legislative session begins in February.