Updated October 29, 2026. Quick answer: Partly. The 2025 packet says each individual “may exclude 100% of their retirement benefits received from” the CSRS when paid in lieu of Social Security, while other federal civil service retirement, FERS included, falls under “may exclude their retirement benefits up to $10,000”.
What Oklahoma does with a FERS or CSRS annuity
| Question | What the Oklahoma documents say |
|---|---|
| What the source says | Oklahoma lets a retiree exclude 100% of federal CSRS benefits paid in lieu of Social Security, while FERS annuities are excluded only under the general government retirement exclusion of up to $10,000, except that a FERS annuity supplement and the CSRS part of a mixed FERS and CSRS benefit also qualify for the full exclusion. |
| Amount or limit | CSRS benefits paid in lieu of Social Security: 100% excluded to the extent included in federal AGI (Schedule 511-A line 3); other federal civil service benefits, including FERS: up to $10,000 per person, not more than the amount in federal AGI (Schedule 511-A line 5), and the retirement income must be in the person’s own name. |
| Change for 2026 | No 2026 change is printed in the state documents cited here. |
In the Oklahoma documents’ own words
- “Federal Employees Retirement System (FERS) do not qualify for this exclusion” (2025 Oklahoma Resident Individual Income Tax Packet)
- “received by an individual from the civil service of the United States” (Oklahoma Statutes Title 68 Revenue and Taxation (Sec. 2358))
How this differs from other pensions in Oklahoma
The $10,000 federal civil service exclusion is the same dollar cap as the Other Retirement Income exclusion for 401, 457 and IRA-type plans, and the two share one $10,000 limit if both are claimed. The full CSRS exclusion is more generous than the general rule. See also Does Oklahoma tax pensions? and military retirement pay.
FERS, CSRS and your TSP
The packet lists plans under IRC Sec. 401, Sec. 457 and Sec. 408 IRAs as Other Retirement Income, but it does not name TSP withdrawals. For the Thrift Savings Plan itself, see state tax on TSP withdrawals and the TSP calculator.
Where this rule sits on the Oklahoma return
The exclusions are on Schedule 511-A: line 3 for CSRS benefits paid in lieu of Social Security, line 5 for government retirement, and line 6 for other retirement income.
Checks before you rely on this answer
- Match your Form CSA 1099-R or CSF 1099-R to the line, because the packet asks for a retirement claim number and a copy of the form with the return for the CSRS exclusion.
- Remember that lines 5 and 6 share one $10,000 limit.
- Read the packet note that follows the CSRS exclusion, which says how FERS benefits are treated.
What the Oklahoma documents leave open
The packet prints no age test and does not name TSP withdrawals. The rate schedule is in PDF tax tables not published here, and no 2026 booklet exists yet.
Common mistakes
- Expecting a full exclusion for a FERS annuity. The packet notes that FERS benefits do not qualify for the CSRS in lieu of Social Security exclusion.
- Claiming the $10,000 twice. The government retirement exclusion and the other retirement income exclusion share one $10,000 limit if both are claimed.
- Claiming it under another person’s name. The retirement income must be in the claimant’s own name.
Related: Does Oklahoma tax pensions?, Oklahoma military retirement pay, Oklahoma retirement deduction line by line, and FERS, TSP and Social Security sequencing.
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Answer againSources
- 2025 Oklahoma Resident Individual Income Tax Packet: https://oklahoma.gov/content/dam/ok/en/tax/documents/forms/individuals/current/511-Pkt.pdf
- Oklahoma Statutes Title 68 Revenue and Taxation (Sec. 2358): https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os68.pdf
Read from the state documents linked above on October 29, 2026. General information, not tax advice.