Oklahoma allows resident active-duty members of the U.S. Armed Forces to exclude 100% of their active military pay from Oklahoma taxable income, to the extent the pay is included in their Federal Adjusted Gross Income (AGI). This exclusion applies to active-duty pay received by members of all components of the U.S. Armed Forces, including the Army, Navy, Air Force, Marine Corps, Coast Guard, Space Force, Reserve, and National Guard when serving on active duty.
Military Pay Exclusion Details
- Eligibility: Must be a resident of Oklahoma and an active member of the Armed Forces (including Reserve and National Guard components).
- Exclusion Amount: 100% of active military pay included in Federal AGI. Military pay that is excluded from Federal AGI (such as certain combat pay excluded under federal law) is not eligible for a separate Oklahoma exclusion because it is not included in Federal AGI.
- Reporting: The exclusion is claimed on Schedule 511-C of Form 511, which is part of Oklahoma’s individual income tax return.
- Retired Military: Military retirement benefits are subject to a separate Oklahoma retirement income exclusion and are claimed under the applicable instructions for military retirement benefits on the Oklahoma individual income tax return.
Source:
Form 511 - Oklahoma Individual Income Tax Return (Page 22)
Disclaimer: Always verify details with the official Oklahoma Department of Revenue forms and instructions. Tax rules may change annually, and individual circumstances may require professional advice from a CPA or tax attorney.