Does Alaska Tax Federal Pensions (FERS, CSRS)? 2026

Updated October 30, 2026. Quick answer: No. The Alaska Department of Revenue says the state “currently does not have an individual income tax”. That leaves a FERS or CSRS annuity untaxed by the state, though it is still on the federal return.

What Alaska does with a FERS or CSRS annuity

QuestionWhat the Alaska documents say
What the source saysThe Alaska Department of Revenue states that Alaska currently has no individual income tax, so a federal civil service pension is not subject to any state individual income tax; the state documents cited here do not mention CSRS or FERS by name.
State rate printedNo individual income tax rate is printed because the state says it has no individual income tax.
Change for 2026No 2026 change is printed in the state documents cited here.

In the Alaska documents’ own words

  • “does not have an individual income tax, therefore no employee withholding” (Alaska Department of Revenue Tax Division, Withholding Tax page (Does Alaska have a withholding tax?))

How this differs from other pensions in Alaska

The sources print no separate rule for federal pensions; the no individual income tax statement is general, so it applies the same way to any individual income. See also Does Alaska tax pensions?.

FERS, CSRS and your TSP

The state documents cited here do not address TSP withdrawals. For the Thrift Savings Plan itself, see Does Alaska tax TSP withdrawals? and the TSP calculator.

Where this rule sits on the Alaska return

Alaska collects no individual income tax, so there is no state return to report an annuity on and no line to claim.

Checks before you rely on this answer

  • Confirm your move date if you moved to Alaska during the year, because the other state may tax part of the year.
  • Keep reporting the annuity on your federal return as usual.
  • Check Alaska’s other taxes and local taxes separately, because this page covers income tax only.

What the Alaska documents leave open

Neither page names pensions, CSRS, FERS or the TSP, so the answer rests on the statement that there is no individual income tax. Both pages come from the same Tax Division site, no statute text could be archived, and the pages print no tax year.

Common mistakes

  • Assuming no state tax means no tax at all. A taxable FERS or CSRS annuity is still on the federal return.
  • Keeping a former state’s rule in mind after a move. The state you live in decides which rule applies.

Related: Does Alaska tax pensions?, and FERS, TSP and Social Security sequencing.

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Sources

Read from the state documents linked above on October 30, 2026. General information, not tax advice.