Public Pension Subtraction


If you received certain pension pay (or survivor benefits) for public service, you may be able to reduce your taxable income. 

To qualify, all of these must be true: 

  • You receive payments or survivor benefits from a qualified pension plan. See “Pension Plans That Qualify.” 
  • Your payments are taxable on your federal return. 
  • You meet a certain income limit based on your filing status. See “Income Limits for the Subtraction.” 
  • Your payments are not based on service for which you also earned credit toward Social Security benefits. 
  • If you are eligible to receive these benefits based on your service, your payments will not qualify. You benefits may be eligible for the Social Security Benefit Subtraction. 
  • If you earned credit toward Social Security benefits for only a portion of your service, see “Determining Benefits for the Subtraction.” 

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