Skip to content
Independent money guidance
Clear Money Guide
Start here
Menu

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

Updated October 30, 2026. Quick answer: No. Article VIII, section 24-a of the Texas Constitution says that the legislature “may not impose a tax on the net incomes of individuals”, so a FERS or CSRS annuity paid to you is not taxed by Texas. The annuity is still on your federal return.

What Texas does with a FERS or CSRS annuity

QuestionWhat the Texas documents say
What the source saysThe Texas Constitution, Article VIII, section 24-a, says the legislature may not impose a tax on the net incomes of individuals; the text does not mention federal civil service pensions, so a federal annuity received by an individual falls under the general bar.
Change for 2026No 2026 change is printed in the state documents cited here.

How this differs from other pensions in Texas

The text makes no distinction between federal pensions and other income of individuals; the bar covers the net incomes of individuals generally, so a federal pension is treated like any other individual income. See also Does Texas 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 Does Texas tax TSP withdrawals? and the TSP calculator.

Where this rule sits on the Texas return

Texas collects no individual income tax, so there is no state return to report an annuity on and no line to claim. The Texas Legislative Council text marks section 24-a as added on November 5, 2019, the election date set in the joint resolution that proposed it (H.J.R. 38).

Checks before you rely on this answer

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

What the Texas documents leave open

The Texas Constitution text is the only source: no Texas Comptroller page saying there is no personal income tax was archived, and the text never mentions federal pensions, CSRS, FERS or the Thrift Savings Plan, so the treatment of an annuity follows from the general bar on taxing the net incomes of individuals.

Common mistakes

  • Assuming no state tax means no tax at all. A taxable FERS or CSRS annuity is still on the federal return.
  • Reading the bar as covering every Texas tax. Section 24-a is limited to the net incomes of individuals; this page does not cover property, sales or other taxes.

Related: Does Texas tax pensions?, Texas 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.

About how much do you have invested?

Sources

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

See the adviser match on this page