FERS pensions are generally taxable at the federal level since they are treated as part of your income. Your tax liability depends on your overall taxable income and any additional benefits, like Social Security. Monthly pension payments are combined with your total income and taxed according to your federal tax bracket. At the state level, tax rules vary—some states tax pensions, whi... https://www.federalpensionadvisors.com/post/is-fers-pension-taxable