Updated October 29, 2026. Quick answer: No. The Department of Revenue says “Washington does not currently have an individual income tax.” A new 9.9% tax on adjusted gross income over $1 million starts January 1, 2028, so nothing changes for 2026.
What Washington does with a FERS or CSRS annuity
| Question | What the Washington documents say |
|---|---|
| What the source says | The Department of Revenue says Washington does not currently have an individual income tax, so a federal civil service pension (CSRS or FERS) is not taxed by the state on that basis; the page does not mention federal pensions by name. |
| Change for 2026 | The 2026 Legislature established a new 9.9% income tax beginning Jan. 1, 2028 on individuals and joint filers with annual adjusted gross income over $1 million; the first returns are due in 2029, and nothing changes for 2026. |
In the Washington documents’ own words
- “a new 9.9% income tax will apply to individuals” (Income tax)
- “annual adjusted gross income exceeding $1 million” (Income tax)
- “The new income tax takes effect Jan. 1, 2028.” (Income tax)
- “does not exempt any pension or” (Engrossed Substitute Senate Bill 6346, Chapter 238, Laws of 2026 (session law))
- “9.90 percent multiplied by an individual’s Washington taxable” (Engrossed Substitute Senate Bill 6346, Chapter 238, Laws of 2026 (session law))
How this differs from other pensions in Washington
The page draws no distinction between federal pensions and other income; with no individual income tax, federal and private pensions are treated alike today. See also Does Washington 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 Washington tax TSP withdrawals? and the TSP calculator.
What the Washington documents leave open
The Department of Revenue page does not mention pensions or federal retirement by name, so the answer for a FERS or CSRS annuity rests on the statement that no individual income tax exists. There are no state return instructions to read because Washington has no individual income return, and the Department page does not say how pension income will count toward the 2028 tax. The session law text cited here does not name CSRS or FERS annuities.
Common mistakes
- Assuming a pension sits outside the 2028 tax. The session law applies the tax to Washington taxable income after a $1,000,000 standard deduction and amends several state pension statutes to say they do not exempt a pension from it.
- Treating $1 million as a fixed line. The session law says the standard deduction is adjusted annually, so the threshold can move.
Related: Does Washington tax pensions?, Washington military retirement pay, and FERS, TSP and Social Security sequencing.
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Answer againSources
- Income tax: https://dor.wa.gov/taxes-rates/income-tax
- Engrossed Substitute Senate Bill 6346, Chapter 238, Laws of 2026 (session law): https://lawfilesext.leg.wa.gov/biennium/2025-26/Pdf/Bills/Session%20Laws/Senate/6346-S.SL.pdf
Read from the state documents linked above on October 29, 2026. General information, not tax advice.