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This paper discusses performance analysis and provides an optimal resource allocation for multiple-input multiple-output orthogonal frequency division multiple access (MIMO-OFDMA) uplink system. The performance of the system is evaluated over Rician fading channels considering the effect of carrier frequency offset (CFO) and assuming channel state information (CSI) is known to the receivers. Moreover a subcarrier allocation technique is proposed, which provides better total capacity in comparison with the fixed resource allocation scheme. Proposed algorithm shows significant improvement in capacity.