Oklahoma Property Tax Elimination: 2026 Proposals and Exemptions

Oklahoma property tax elimination has been proposed but not enacted. No bill has repealed property taxes, and the state’s effective rate still sits around 0.79% of a home’s market value. What is moving in the 2026 legislature is a resolution that would end property taxes for homeowners 65 and older and freeze them for everyone else with a homestead exemption, plus a separate constitutional amendment that would open the senior valuation freeze to seniors at any income level. In the meantime, the homestead exemption, the senior freeze, the 100% disabled veteran exemption, and the constitutional cap on assessment increases can meaningfully reduce your bill, and one of them can eliminate it entirely.

What’s Actually on the Table in 2026

The headline proposal is Senate Joint Resolution 23, filed by Senator Bullard and titled the Ad Valorem Reform Act of 2026. It would eliminate property taxes entirely for Oklahomans aged 65 and older who own their primary home. For every other homeowner with a homestead exemption, it would freeze property taxes at current levels so the bill stops climbing year over year. Lost local revenue would be replaced through what the resolution calls a “fair tax model” built on adjusted sales and consumption taxes.¹

SJR 23 would also move the constitution’s property tax language into ordinary state statute, so future legislatures could adjust the rules without a statewide vote each time. As of early 2026, the resolution has been referred to the Senate Rules Committee and has not yet received a committee hearing or floor vote.²

A separate constitutional amendment targets the senior valuation freeze on its own. Right now, homeowners 65 and older qualify for a freeze on assessed value only if their household income falls below a cap tied to HUD figures. The proposed amendment would strip the income requirement out, making every homeowner 65 or older eligible regardless of what they earn.³

Why Full Elimination Is Hard

Property taxes in Oklahoma are governed by Article X of the state constitution, and the money is purely local revenue. It goes directly to school districts, county governments, career-tech programs, and other local entities, not to the state general fund.⁴ The administrative rules sit in Title 68 of the Oklahoma Statutes.⁵

Because the tax is embedded in the constitution, the legislature alone cannot repeal it. A full elimination requires a constitutional amendment: both chambers must approve the measure, and voters must ratify it statewide. That is the path SJR 23 is on, and it is why property tax reform moves slowly in Oklahoma even when the political appetite is there.

The harder problem is replacement revenue. School districts in particular rely on property taxes, and any elimination plan has to produce a credible substitute. The consumption-tax model in SJR 23 would need to generate billions in local revenue without falling too heavily on lower-income households, who spend a larger share of what they earn on taxable goods. That question is where prior proposals have broken down.

Relief You Can Claim Right Now

The Homestead Exemption

The standard homestead exemption takes $1,000 off your home’s assessed value. To qualify, you must own and occupy the property as your primary residence on January 1 of the tax year. The application is Form OTC 921, filed with your county assessor.⁶

To have the exemption apply to the current tax year, file on or before March 15, or within 30 days of receiving a notice of valuation increase. File later than that and the exemption starts the following year. Once approved, it renews automatically. You only need to refile if you sell, the title changes, or you move to a different primary residence.

Senior Valuation Freeze

If you are 65 or older and your gross household income for the preceding year does not exceed $99,000 for 2026, you can lock your home’s assessed value at its current level under Article X, Section 8C of the Oklahoma Constitution. The freeze holds even if surrounding property values climb.³

Gross household income here means income from all sources for everyone living in the home, gifts excluded. Social Security, pensions, rental income, and investment returns all count. You will need a copy of your most recent federal return and documentation of other household income. File Form OTC 994 with the county assessor.⁷

The $99,000 threshold is drawn from HUD guidelines and can change year to year. If the 2026 constitutional amendment passes, this income test goes away.

100% Disabled Veteran Exemption

Veterans with a 100% permanent disability rating from the U.S. Department of Veterans Affairs qualify for a complete exemption from property taxes on their homestead. Under current Oklahoma law this is the clearest way to zero out the entire bill. The exemption covers the full fair cash value of the home and household personal property.⁸

The disability must have resulted from military action, accident, or disease contracted during active service. Surviving spouses of qualifying veterans remain eligible. Submit the VA letter confirming the disability rating with your application to the county assessor.⁹

The 3% and 5% Caps on Assessment Increases

Even without an exemption, Oklahoma’s constitution limits how fast assessed values can rise. Under Article X, Section 8B, property with a homestead exemption and agricultural land cannot see assessed value increase by more than 3% in a year. All other locally assessed real property, including rental houses and commercial buildings, is capped at 5%.¹⁰

The cap disappears when the property changes hands. In any year title transfers to another person, the assessed value resets to current fair market value. If you buy a home the previous owner held for 15 years with the cap suppressing the assessed value, your first tax bill will likely be much higher than what the seller was paying.¹⁰

The longer you hold a home in a rising market, the wider the gap between assessed value and market value, and the more the cap is worth to you.

If You Think Your Assessment Is Too High

The appeal process runs in two stages. First is an informal protest to the county assessor using Form OTC 974, generally within 30 calendar days of the date your Change of Value notice was mailed. Bring evidence: comparable recent sales, a recent appraisal, or documentation of conditions that reduce value. The assessor issues a written decision within seven calendar days of the hearing.

If the informal decision doesn’t satisfy you, the second step is a formal appeal to the County Board of Equalization on Form OTC 976, filed within 15 calendar days of the date the assessor’s decision was mailed or delivered.¹¹ The board hearing is more formal: all parties sign an affidavit that their evidence is truthful, and the board can subpoena witnesses and records. Beyond the board, the next step is district court or the Court of Tax Review.

What It Costs to Fall Behind

Property taxes are due November 1. You can pay in full before January 1 or split the bill in half, with the second installment due before April 1. Bills of $25 or less must be paid in full before January 1.¹²

Miss the deadline and delinquent taxes accrue interest at 1.5% per month, capped at 100% of the unpaid balance. Interest alone can double what you owe.¹²

After taxes remain unpaid for three or more years from the original due date, the county treasurer can advertise and sell the property at a tax resale held the second Monday of June. At that point you lose the property to the buyer, and Oklahoma provides no redemption period after a tax resale auction.¹³

One narrow protection exists. In counties with populations over 100,000, the treasurer cannot conduct a tax sale on a single-family home if the resident is 65 or older or totally disabled, the property is not being rented out, the resident’s income falls below federal poverty guidelines, and the home’s market value does not exceed $180,000. All five conditions must be met.¹³

If paying is a struggle, filing for the homestead exemption, senior freeze, or disabled veteran exemption before you fall behind is cheaper than working out from under interest and a pending resale.

1
Oklahoma Senate. Bullard Files Legislation to Responsibly Freeze, Eliminate Property Taxes
2
Oklahoma Legislature. Bill Information for SJR 23
3
Ballotpedia. Oklahoma Remove Income Requirement for Seniors to Qualify for Property Tax Freeze Amendment 2026
4
Oklahoma Senate. Oklahoma Constitution – Article X – Revenue and Taxation
5
New York Codes, Rules and Regulations. Oklahoma Code Title 68 – Revenue and Taxation
6
Oklahoma Tax Commission. Oklahoma Application for Homestead Exemption
7
Oklahoma Tax Commission. 2026 Form 994 Application for Property Valuation Limitation and Additional Homestead Exemption
8
Oklahoma Tax Commission. Application for 100 Percent Disabled Veterans Real Property Tax Exemption
9
Cornell Law Institute. Oklahoma Administrative Code 710:10-14-1 – General Provisions
10
Wagoner County, OK. What Is the 3 Percent / 5 Percent Limitation Cap
11
Oklahoma Tax Commission. 2026 Form 976 Formal Appeal County Board of Equalization
12
New York Codes, Rules and Regulations. Oklahoma Code 68-2913 – Due Date of Ad Valorem Taxes – Penalty on Delinquent Taxes
13
Justia Law. Oklahoma Statutes Title 68-3105 – Real Property to Be Sold For