Updated October 30, 2026. Quick answer: Yes, it is taxed, as far as the documents show. North Dakota “means the federal taxable income of an individual, estate, or trust” with listed adjustments. The retirement adjustments printed are for retired military benefits, retired peace officer benefits and Social Security. No subtraction for CSRS or FERS as such is listed, and a retired federal law enforcement officer should read the peace officer rule below.
What North Dakota does with a FERS or CSRS annuity
| Question | What the North Dakota documents say |
|---|---|
| What the source says | North Dakota starts from federal taxable income and the documents list no subtraction aimed at federal civil service pensions (CSRS or FERS); the retirement subtractions printed are for retired military benefits (which also covers civil service retirement benefits of a dual status military technician), retired peace officers with at least twenty years of service or a disability retirement, and Social Security. |
| State rate printed | The 2025 schedule prints a 0.00% bracket at the bottom, then 1.95% and 2.50% on higher North Dakota taxable income. |
| Change for 2026 | No 2026 change is printed in the state documents cited here. |
In the North Dakota documents’ own words
- “Reduced by the amount received by a taxpayer as retired military personnel” (North Dakota Century Code chapter 57-38, section 57-38-30.3)
- “enter on this line the amount of taxable military retirement” (2025 North Dakota Individual Income Tax Instructions, Forms ND-EZ and ND-1)
- “Licensed peace officer retirement benefits exclusion” (2025 North Dakota Individual Income Tax Instructions, Forms ND-EZ and ND-1)
How this differs from other pensions in North Dakota
The state documents cited here print no separate pension rule for federal civil service retirees, so a CSRS or FERS annuity that is in federal taxable income is treated like other pension income. Retired military benefits, retired peace officer benefits and Social Security are the retirement-related subtractions printed. See also Does North Dakota tax pensions? and military retirement pay.
FERS, CSRS and your TSP
The state documents cited here do not address TSP withdrawals. For the Thrift Savings Plan itself, see state tax on TSP withdrawals and the TSP calculator.
Where this rule sits on the North Dakota return
Form ND-1 line 9 is the licensed peace officer retirement benefits exclusion, line 14 is the military retirement benefit exclusion and line 15 is the Social Security benefit exclusion. A federal civil service annuity has no line of its own.
Checks before you rely on this answer
- Check whether your annuity is military: the instructions say retirement benefits received for federal civil service employment as a dual status military technician are also eligible for line 14.
- If you are a retired service member, read the military retirement line instead of this page.
- If you retired from law enforcement with at least twenty years of service or on disability, read the line 9 peace officer rules and their documentation requirements before assuming the annuity is taxed.
- Keep reporting the annuity on your federal return as usual.
What the North Dakota documents leave open
Neither document names CSRS or FERS, so that a civil service annuity is taxed is read from the absence of any listed subtraction. The statute defines a peace officer to include one authorized by an agency or branch of the United States, while the booklet’s line 9 speaks of licensed peace officers and asks for licensing records, so neither document settles whether a federal law enforcement annuity qualifies. Statute section 57-38-01.2 is repealed, so chapter 57-38 section 57-38-30.3 is cited. TSP and IRA withdrawals are not addressed, and no 2026 booklet exists yet.
Common mistakes
- Assuming the military exclusion covers all federal retirees. It covers retired military benefits, plus civil service retirement of a dual status military technician. Retired peace officers have their own line.
- Expecting a special federal civil service line. The documents print none.
Related: Does North Dakota tax pensions?, North Dakota military retirement pay, and FERS, TSP and Social Security sequencing.
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Answer againSources
- 2025 North Dakota Individual Income Tax Instructions, Forms ND-EZ and ND-1: https://www.tax.nd.gov/sites/www/files/documents/forms/individual/2025-iit/2025-individual-income-tax-booklet.pdf
- North Dakota Century Code chapter 57-38, section 57-38-30.3: https://ndlegis.gov/cencode/t57c38.pdf
Read from the state documents linked above on October 30, 2026. General information, not tax advice.