Federal employees are not taxed less than other workers in terms of their federal income tax, but there are several distinctions in their overall tax responsibilities. Employees in the Civil Service Retirement System (CSRS) do not contribute to Social Security, while those under the Federal Employees Retirement System (FERS) do. The taxation of federal pensions varies, with some state... https://www.federalpensionadvisors.com/post/do-federal-employees-pay-less-taxes