Military compensation
Understanding military pay in 2026
Military compensation goes well beyond the base-pay number on the DFAS pay chart. Tax-free allowances for housing (BAH) and food (BAS) often add $2,000 to $3,500 per month on top of base pay — and because they are not taxed, their real purchasing power is higher than an equivalent civilian raise. This calculator combines all three components and shows what you actually take home.
2026 base pay highlights (3.8% raise)
| Grade | Monthly base (<2 yrs) | Annual base |
|---|---|---|
| E-1 | $2,037.90 | $24,454.80 |
| E-5 | $3,167.40 | $38,008.80 |
| E-7 | $3,936.00 | $47,232.00 |
| O-1 | $3,826.20 | $45,914.40 |
| O-3 | $5,291.10 | $63,493.20 |
| O-5 | $6,928.80 | $83,145.60 |
Selected pay grades at entry-level time in service. Full tables available from DFAS. Same table applies to Army, Navy, Air Force, Marines, Space Force, and Coast Guard.
State tax considerations
Nine states have no income tax at all, and many others exempt active-duty military pay. Under the Servicemembers Civil Relief Act (SCRA), you can maintain your legal residence in your home state regardless of where you are stationed. If your home state is Texas, Florida, or another no-income-tax state, your state burden is zero. Check your state with our no-income-tax states guide.
Compare to civilian salary
To compare military compensation to a civilian job, add your base pay + BAH + BAS, then account for the tax advantage on allowances. Use our paycheck calculator to model a civilian salary with the same take-home, and compare side by side with the take-home comparison tool.
Questions
Military pay calculator FAQ
How much did military pay increase in 2026?
Military base pay increased 3.8% effective January 1, 2026, authorized by the National Defense Authorization Act (NDAA) for Fiscal Year 2026. This raise applies uniformly to all pay grades from E-1 through O-10 across every branch.
Is BAH taxable?
No. Basic Allowance for Housing (BAH) is not subject to federal income tax, Social Security, or Medicare tax. The same is true for Basic Allowance for Subsistence (BAS) and most other allowances. Only base pay and special/incentive pays are taxable, unless you serve in a combat zone where all pay may be tax-exempt.
How is military base pay taxed?
Military base pay is taxed like civilian wages — subject to federal income tax, Social Security (6.2% up to $184,500 in 2026), and Medicare (1.45%). Service members file IRS Form 1040 and use the same brackets. However, many states exempt military pay from state income tax, and combat zone pay is exempt from federal tax.
What is the starting pay for an E-1 in 2026?
An E-1 (Private/Seaman Recruit/Airman Basic) with less than 2 years of service earns $2,037.90 per month in base pay in 2026, or $24,454.80 annually. With BAH and BAS added, total compensation is significantly higher and varies by duty station.
- Sources: DFAS 2026 military pay tables (3.8% raise, NDAA FY2026) · IRS Rev. Proc. 2025-32 (2026 brackets) · SSA 2026 FICA rates.
- 🔄 Last updated July 25, 2026 · Tax year 2026
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