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Common Ground News

What taxes do military personnel pay?

Author

Carter Sullivan

Updated on February 15, 2026

What taxes do military personnel pay?

Base pay is taxable unless you are actively serving in a designated tax-free combat zone. You'll pay federal income tax, Social Security, Medicare, and state taxes on your base pay. Some states do not tax military pay, while a few others won't tax it unless you are stationed within the state.

Also to know is, how much do military members get taxed?

In the military, the federal government generally only taxes base pay, and many states waive income taxes. Other military pay—things like housing allowances, combat pay or cost-of-living adjustments—isn't taxed.

One may also ask, are military personnel exempt from state taxes? Under federal law, states are prohibited from taxing the military income of nonresident service members who are stationed in their states. Note, this protection only applies to military income. If you also have a nonmilitary job, you'll be subject to paying resident state income taxes on those wages. 4.

Keeping this in view, does military pay local taxes?

Active-duty service members file state income taxes in their state of legal residence. Military service members are not required to change their legal residence when they move to a new state solely because of military orders; they may maintain their legal residence in a state where they have previously established it.

What taxes do you pay while deployed?

Any form of pay earned while on deployment in a combat zone is excluded from federal income tax. This translates to a significant tax savings for the active service member in combat and his family back home.

Can you be a millionaire in the military?

Using just part of your military paycheck, you can retire as a military millionaire. It's true. Becoming a military millionaire is about making your money work for you while you're enlisted in the military, and it isn't as complicated as it sounds.

Which states do not tax military?

States That Don't Tax Military Retirement Pay
AlabamaKansasNorth Dakota
ConnecticutMainePennsylvania
HawaiiMassachusettsUtah
IllinoisMichiganWest Virginia
IowaWisconsin

Do military personnel pay federal income tax?

Everyone gets the base pay, and it's the same regardless of what military service you are in. You'll pay federal income tax, Social Security, Medicare, and state taxes on your base pay. Some states do not tax military pay, while a few others won't tax it unless you are stationed within the state.

What branch of military pays most?

The highest ranking enlisted Marine, Sgt. Maj of the Marine Corps Ronald Green, makes over $90,000 a year in base pay alone. Military officer pay is much higher. Newly commissioned officers make about $38,250 a year.

What are the highest paying jobs in the military?

What are some of the highest paid military jobs?
  • Military police. National average salary: $41,245 per year.
  • Pilot. National average salary: $43,482 per year.
  • Drone pilot. National average salary: $44,858 per year.
  • Combat engineer. National average salary: $46,201 per year.
  • Interpreter.
  • Translator.
  • Army officer.
  • Captain.

What military income is not taxable?

The primary allowances for most individuals are BAS and BAH, which are tax-exempt. Conus COLA is one allowance that is taxable. A law change mandated that every allowance created after 1986 would be taxable.

Can you retire from the Army after 10 years?

If you are a commissioned officer or an enlisted with prior commissioned service, you must have at least 10 years of commissioned service to retire at your commissioned rank.

How do US military get paid?

Basic Pay is the base salary for a military member on active duty and counts for part of total military income. Basic Pay is electronically distributed on the 1st and 15th of every month, similar to many civilian jobs. In general annual military pay raises are linked to the increase in civilian wages.

Does military Get Tax Refund?

Members of the armed forces who die while on duty in a combat zone or in support of a combat operation are forgiven any tax liability they may owe the IRS. If you already paid the tax, that amount will be refunded to your survivor.

Do soldiers pay rent on base?

Instead of living in the dormitories or residing in on-base housing, you may be authorized to live off-base. In this case, the military will pay you BAH. The amount of this nontaxable allowance is dependent upon your rank, marital (dependency) status and the area you (or your dependents) live in.

What is the civilian equivalent of military pay?

Equivalent Civilian to Military Ranks
Civilian GradeMilitary RankArmy Title
GS-11, GS-12O-3Captain
GS-13O-4Major
GS-14O-5Lieutenant Colonel
GS-15O-6Colonel

How much do army soldiers get paid?

How Much Do Army Soldier Jobs Pay per Month?
Annual SalaryMonthly Pay
Top Earners$50,000$4,166
75th Percentile$35,500$2,958
Average$30,572$2,547
25th Percentile$25,000$2,083

How much money does someone in the army make?

All soldiers on active duty receive a basic pay. The Army ranks its soldiers from E1 through E6. E1s with less than two years experience earn an annual salary of $19,660. The wage is slightly lower for the first four months of service.

Does military pay city taxes?

You may know that military allowances like Basic Allowance for Housing are tax-free. Did you know that many states do not charge income tax on active duty or retired military pay? Many others tax only a portion of these pays.

Can military claim residency any state?

Military members may have legal residence in one state but be stationed in a different state, and the Servicemembers Civil Relief Act allows military members to pay taxes, register vehicles, vote, etc. in their state of legal residence, rather than the state they are stationed in.

Do I need to file state taxes for military?

If you are serving on active duty in the military, you just need to file one state tax return for your Home of Record or state of legal residence (SLR) unless you have state specific income, such as business income, civilian (nonmilitary) wages, or rental income, in addition to your military income.

Can military spouse claim residency any state?

The Military Spouses Residency Relief Act allows military spouses to declare the same state of legal residency as their spouse. The service member is stationed under military orders in a state that is not his/her resident state. The spouse is in that state solely to live with the service member.

Do deployed soldiers file taxes?

Deployed service members are expected to file their taxes. Fortunately, the Internal Revenue Service realizes service members and their families face unique circumstances and offers tools – and some special extensions – to make tax filing easier.

What deployments are tax free?

Designated Combat Zones
  • Arabian Sea that is north of 10 degrees north latitude and west of 68 degrees east longitude.
  • The Red Sea.
  • The Gulf of Aden.
  • The Gulf of Oman.
  • The total land areas of Bahrain, Iraq, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.

What deployed locations are tax free?

Current Recognized Combat Zones
  • Jordan, Kyrgyzstan, Pakistan, Tajikistan, and Uzbekistan (as of September 19, 2001)
  • Philippines (from January 9, 2002 through September 30, 2015)
  • Djibouti (as of July 1, 2002)
  • Yemen (as of April 10, 2002)
  • Somalia and Syria (as of January 1, 2004)

Does everyone pay combat?

Combat pay is nontaxable for most service members, and all service members can exclude at least some of their combat pay from their taxable income. Not all military income is considered combat pay, so service members should always evaluate their income when filing a tax return.

Are stimulus payments going out based on income?

For taxpayers, stimulus checks are based on your adjusted gross income, or AGI, from your most recent tax return.

How do deployed military file taxes?

Getting Started with Taxes While Deployed

File returns in your permanent home state. If you are stationed somewhere other than your permanent home address, in most cases you will still pay state taxes to your home state.

Do soldiers wear diapers?

No, we don't wear diapers. No Soldiers do not wear diapers to avoid bathroom breaks. There might be occasions where Soldiers urinate in bottles to be able to relieve themselves without stopping movement while in a military vehicle or aircraft. Some female pilots have acknowledged utilizing a device to facilitate this.

How much money do you make on a 6 month deployment?

On a 6 month deployment, you could earn $750 in interest. The SDP is a great place to park your emergency fund while you are deployed. In case you need to access the money, withdrawals are quick and easy through the MyPay website.

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