The FERS pension is subject to federal income tax because it qualifies as income. Your total tax burden depends on your overall taxable income and whether you receive Social Security benefits. Pension payments are included in your income and taxed based on your tax bracket. State taxation policies differ, with some states taxing pensions and others not. It’s important to understand bo... https://www.federalpensionadvisors.com/post/is-fers-pension-taxable