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Do government employees pay taxes?

By Zippia Team - Dec. 9, 2022

Yes, government employees pay taxes. While certain aspects of their compensation might differ from non-federal employees, like pensions and retirement plans, government employees are required to pay taxes just like non-federal employees.

Prior to 1984, some federal employees did not have to pay Social Security taxes, however, all federal employees hired in 1984 or later must pay Social Security taxes.

While federal employees are required to pay taxes just like all other workers, they sometimes have more generous employee benefit packages in these areas:

  • Health insurance

  • Life Insurance

  • Retirement benefits

  • Social Security benefits

Do government employees pay taxes?

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