Updated October 29, 2026. Quick answer: Yes, in general. FTB Publication 1005 says “treatment of pension and annuity income is generally the same” as the federal treatment. The federal retirement exclusion printed in these documents is for military retirement pay, up to $20,000, which does not cover civilian annuities.
What California does with a FERS or CSRS annuity
| Question | What the California documents say |
|---|---|
| What the source says | California says its treatment of pension and annuity income is generally the same as the federal treatment, and neither document prints a separate exclusion for federal civil service pensions, so CSRS and FERS annuities would appear to follow the federal return. |
| Change for 2026 | No 2026 change is printed in the state documents cited here. |
In the California documents’ own words
- “federal government for service in the uniformed services” (FTB Publication 1005, 2025 Pension and Annuity Guidelines)
- “exclusion from gross income for a qualified taxpayer that received retirement pay” (2025 Form 540 California Resident Income Tax Return booklet)
How this differs from other pensions in California
Federal civil service pensions are not singled out, so they would appear to follow the same general rule as other pensions and annuities, which tracks the federal treatment. The one exclusion printed for federal government retirement pay applies to service in the uniformed services. See also Does California tax pensions? and military retirement pay.
FERS, CSRS and your TSP
The state documents cited here do not address TSP withdrawals, though Pub. 1005 says California IRA rollovers and Roth IRAs are treated the same as federal law. For the Thrift Savings Plan itself, see state tax on TSP withdrawals and the TSP calculator.
Where this rule sits on the California return
California conforms to federal treatment of pensions in general, so the amount starts from the federal return, and adjustments are made on Schedule CA (540).
Checks before you rely on this answer
- Read Schedule CA (540) for your tax year, which this page did not review.
- If part of your pay was for service in the uniformed services, check the military retirement exclusion separately.
- Check the differences Publication 1005 lists, such as Social Security and railroad retirement benefits, before assuming federal treatment applies.
What the California documents leave open
Neither document names CSRS, FERS or civil service annuities, so the taxable answer is inferred from the rule that California generally follows the federal treatment. The Schedule CA (540) instructions and the statute text were not read, the rate schedules are tables not published here, and no 2026 booklet exists yet.
Common mistakes
- Claiming the military retirement exclusion on a civilian annuity. It covers retirement pay for service in the uniformed services.
- Assuming a federal exclusion carries over. California follows federal treatment in general but differs on some items, such as Social Security and railroad retirement benefits.
Related: Does California tax pensions?, California military retirement pay, California retirement deduction line by line, and FERS, TSP and Social Security sequencing.
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Answer againSources
- FTB Publication 1005, 2025 Pension and Annuity Guidelines: https://www.ftb.ca.gov/forms/2025/2025-1005-publication.pdf
- 2025 Form 540 California Resident Income Tax Return booklet: https://www.ftb.ca.gov/forms/2025/2025-540-booklet.html
Read from the state documents linked above on October 29, 2026. General information, not tax advice.