Military Pay Information & Resources
Our Military Pay Calculator helps you compare your current military compensation with the civilian salary you’d need to match it. But understanding military pay isn’t always simple. This page explains how your pay is structured, the tax advantages, and how to make fair comparisons when transitioning to the civilian sector.
Understanding Military Pay
Base Pay
Your Base Pay is determined by rank and years of service. It is taxable income and forms the foundation of your military compensation.
👉 See the latest Military Pay Tables at DFAS
Basic Allowance for Housing (BAH)
BAH helps cover the cost of housing when government quarters aren’t available. It varies by location, rank, and dependency status — and is non-taxable.
👉 Check your local rates on the Defense Travel Management Office BAH Calculator
Basic Allowance for Subsistence (BAS)
BAS provides a monthly non-taxable food allowance. Rates differ between enlisted members and officers.
Special Pays
Certain duties or conditions qualify for extra pay, including:
- Hazardous duty pay
- Hostile fire / imminent danger pay
- Flight pay
- Sea pay
- Jump pay
Taxes & Exemptions
One of the biggest advantages of military pay is that some allowances — like BAH and BAS — are non-taxable, increasing your effective take-home pay.
Additionally, many states partially or fully exempt military pay. Policies differ, but examples include:
- Texas & Florida – No state income tax.
- Virginia – Exemption for active duty service members who are non-residents.
- Pennsylvania – Military pay exempt for residents on active duty outside PA.
Military vs Civilian Salary
When comparing your compensation to civilian jobs, remember:
- Military members receive tax-free allowances that civilians do not.
- Civilian salaries often include higher gross pay but fewer benefits.
- Military benefits like Tricare healthcare, retirement pension, and VA benefits add significant value.
Our calculator helps you see the civilian salary equivalent you’d need to earn to match your military lifestyle.
Retirement Comparisons
Military retirement is one of the most generous in the country. After 20 years of service, you may qualify for a defined benefit pension, plus you can contribute to the Thrift Savings Plan (TSP).
Civilian jobs often rely on 401(k) plans with employer matches — but these are tied to the market and require careful planning.
Frequently Asked Questions
Is military pay tax-free?
No. Base Pay is taxable, but BAH and BAS are non-taxable, reducing your overall tax burden.
How much would I need to make as a civilian to match my military pay?
It depends on your rank, years of service, dependents, location, and special pays. Our Military Pay Calculator shows your equivalent civilian salary.
How does BAH affect my take-home pay?
Because BAH is non-taxable, it effectively increases your take-home pay compared to an equivalent taxable civilian salary.
Do all states tax military pay?
No. Some states exempt military pay entirely, while others only partially exempt it. Always check your state’s rules.
Is military retirement better than a 401(k)?
Military retirement offers a guaranteed pension (after 20 years), while most civilians rely on market-based 401(k) accounts. The stability and health coverage make military retirement highly valuable.
👉 Ready to see how your benefits stack up? Try the Military Pay Calculator now.