HB 2194 Summary

• Increases the retirement income exemption for Oklahoma tax purposes from $10,000 to $20,000 annually for tax year 2026 and all subsequent years, applying to benefits from federal, state, and local retirement systems.

• Modifies paragraph 8 of Section E.1 to allow individuals to claim combined exemptions under paragraphs 8 and 13 not exceeding the new $20,000 limit for 2026 and beyond (previously capped at $10,000).

• Expands the definition of eligible retirement benefit sources to include civil service retirement, public employee systems, teachers' retirement, law enforcement retirement, firefighters' pension, police pension, county and municipal employee retirement systems.

• Effective date is November 1, 2025, applying to tax years beginning on or after January 1, 2026.