The FERS pension is federally taxable because it is classified as income. The amount of tax you owe depends on your taxable income and any additional benefits you receive, such as Social Security. These monthly pension payments are included in your total income and taxed at your applicable bracket. Certain states also tax pensions, while others do not, which could affect your total ta... https://www.federalpensionadvisors.com/post/is-fers-pension-taxable