FERS pensions are considered taxable income and are subject to federal income tax. The taxes you pay depend on your overall taxable income, including other benefits like Social Security. Pension payments are added to your total income and taxed based on your bracket. State taxation varies—some states impose taxes on pensions, while others offer exemptions. Understanding your tax liabi... https://www.federalpensionadvisors.com/post/is-fers-pension-taxable