Updated October 29, 2026. Quick answer: Yes, in general. Ohio starts from federal adjusted gross income, and the deduction printed for a CSRS or FERS annuity is the share “attributable to the taxpayer’s uniformed service”.
What Ohio does with a FERS or CSRS annuity
| Question | What the Ohio documents say |
|---|---|
| What the source says | Ohio starts from federal adjusted gross income and has no general exemption for federal civil service pensions; the only federal pension deduction printed is for the part of CSRS or FERS retirement income attributable to uniformed service years. |
| Change for 2026 | No 2026 change is printed in the state documents cited here. |
In the Ohio documents’ own words
- “attributable to your years of military service” (Instructions for Filing Original and Amended Individual Income Tax (IT 1040) 2025)
- “The maximum credit per return is $200.” (Instructions for Filing Original and Amended Individual Income Tax (IT 1040) 2025)
- “Your MAGI less exemptions is less than $100,000;” (Instructions for Filing Original and Amended Individual Income Tax (IT 1040) 2025)
- “such as Social Security benefits and uniformed services retirement income” (Instructions for Filing Original and Amended Individual Income Tax (IT 1040) 2025)
- “federal civil service retirement system or federal employees retirement system” (Ohio Revised Code 5747.01 Definitions)
How this differs from other pensions in Ohio
Federal civil service pensions would appear to be treated like other pension income that is included in federal AGI and so included in Ohio AGI. The retirement income credit (maximum $200 per return, MAGI less exemptions under $100,000) applies to pension, 401(k) and IRA-type retirement income included in Ohio AGI, and amounts deducted on the Schedule of Adjustments do not qualify for it. See also Does Ohio tax pensions? and military retirement pay.
FERS, CSRS and your TSP
The booklet names traditional IRAs and 401(k) plans as qualifying retirement income for the retirement income credit, but does not mention TSP by name. For the Thrift Savings Plan itself, see state tax on TSP withdrawals and the TSP calculator.
Where this rule sits on the Ohio return
The uniformed service deduction is on the Schedule of Adjustments and the retirement income credit is on the Schedule of Credits, so an annuity can touch both.
Checks before you rely on this answer
- Find the years of service credited to uniformed service on your annuity statement before working out the deduction.
- Do not claim the retirement income credit on amounts you deduct.
- Check modified adjusted gross income less exemptions against the credit’s income limit.
What the Ohio documents leave open
No source states in one sentence that a civilian federal pension is taxable; that is read from the deduction lists, which include only the uniformed service share. The retirement income credit table, the rate schedule and TSP by name were not read, and no 2026 booklet exists yet.
Common mistakes
- Deducting the whole annuity because of some military credit. The printed deduction is for the uniformed service share, for example one third of the taxable pension when 10 of 30 service years were military.
- Using the retirement income credit on amounts already deducted. Amounts deducted on the Schedule of Adjustments do not qualify for it, and the maximum credit per return is $200.
Related: Does Ohio tax pensions?, Ohio military retirement pay, and FERS, TSP and Social Security sequencing.
Find the right next step for your situation
About how much do you have invested? Pick the range that fits; your next step appears immediately below.
Compare adviser services and total fees
For U.S. investors with $250,000 or more in investable assets. WiserAdvisor is an independent service matching you with 2 to 3 vetted advisers. Its form asks for your ZIP code and answers to a few questions; a match is not guaranteed.
Free to request, with no obligation to hire. By submitting, you consent to calls, texts and emails from WiserAdvisor and up to three advisers. Advisers pay for introductions.
Clear Money Guide may earn a referral payment for a qualifying completed form. An introduction is not a Clear Money Guide recommendation.
Opens on WiserAdvisor’s site in a new tab.
Explore optional adviser matching
Considering financial advice? Request an adviser introduction with no obligation to hire.
The form is run by Kapitalwise, our advisor-matching partner. Requesting an introduction is free. Submitting the form shares your contact details with advisers, so expect calls and texts. Advisers pay for introductions. Clear Money Guide may earn a referral payment for a qualifying submitted form, whether or not you hire anyone. A match is not guaranteed.
The Kapitalwise form opens here; you stay on this page.
What happens when you press the button
It asks about nine questions: age, investable assets, location; then your name, email and phone number, and verifies the phone by text. Nothing loads and nothing reaches Kapitalwise until you press the button.
Prefer flat-fee or hourly pricing instead? Compare ranges here.
Answer againSources
- Instructions for Filing Original and Amended Individual Income Tax (IT 1040) 2025: https://dam.assets.ohio.gov/image/upload/v1767095693/tax.ohio.gov/forms/ohio_individual/individual/2025/it1040-booklet.pdf
- Ohio Revised Code 5747.01 Definitions: https://codes.ohio.gov/ohio-revised-code/section-5747.01
Read from the state documents linked above on October 29, 2026. General information, not tax advice.