10/01/2025
The 2026 income limitations have been published. We encourage you to visit us between January 2 and March 15th, 2026, to examine these exemptions. If you have any questions or concerns, please do not hesitate to contact us at 918-647-3652.
Constitutional basis: Article X, Section 8C of the Oklahoma Constitution
• In 1996, Oklahoma voters approved State Question 677, which added a new Section 8C to Article X of the Oklahoma Constitution. That section provides that the fair cash value of a homestead for a head of household aged 65+ whose gross household income is below a specified threshold shall be limited (i.e. frozen) at the value first established when the person becomes eligible (subject to certain conditions). 
• That constitutional provision requires that the income limitation “shall not exceed the amount determined by the United States Department of Housing and Urban Development to be the estimated median income for the preceding year for the county or metropolitan statistical area” in which the property is located. 
Statutory definitions and implementation: Title 68 Oklahoma Statutes (O.S.)
• The statutes define terms and processes. For instance, 68 O.S. § 2890 defines “gross household income” and “head of household” in the context of homestead and valuation limitation programs. 
• The statutory implementation and the required forms (e.g. OTC Form 994) carry out the constitutional mandate. The statutes also reference the HUD median income standard in applying the valuation limitation. 
Federal benchmark: HUD median income
• The constitution and statutes explicitly tie the maximum allowable gross household income to the HUD-estimated median income for the relevant county or metropolitan area (for the prior year). In other words, the income cap is not a fixed state-set number, but indexed to the HUD median income for each area. 
• Each county’s assessor’s office is supposed to use the HUD figure (as provided by the Oklahoma Tax Commission) when determining eligibility. 
⸻
How it works in practice
• A homeowner aged 65 or older (as of January 1 of the tax year) may apply to “freeze” the taxable value of their homestead—i.e. limit further increases in fair cash value—so long as their gross household income does not exceed the HUD median-income threshold for their county. 
• “Gross household income” includes income from all sources (taxable and non-taxable), for all persons occupying the household, excluding gifts. 
• The income limits vary by county (or metro area) because HUD’s median income differs across jurisdictions. 
• The applicant typically must file between January 1 and March 15 (or within 30 days of notice of valuation increase) using a prescribed form. 
• If a homeowner’s income exceeds the HUD threshold (or if property changes ownership, or improvements are made), the limitation may not apply or may be removed.
