Incoherent pion electroproduction on the deuteron is studied from threshold up to the second resonance region with special emphasis on the influence of final state interaction, in particular on polarization observables. The elementary γN → πN amplitude is taken from the MAID-2003 model. Final state interaction is included by considering complete rescattering in the final N N and πN subsystems. Their influence on the structure functions governing the semi-exclusive differential cross section, where besides the scattered electron only the produced pion is detected, is investigated in detail. For charged pion-production the effect of N N -rescattering is moderate whereas πN -rescattering is almost negligible, except very close to threshold. N N -rescattering appears much stronger in neutral pion production for which the primary mechanism is the elimination of a significant spurious coherent contribution in the impulse approximation. Sizeable effects are also found in some of the polarization structure functions for beam and/or target polarizations.