Military Pay After Taxes Calculator: What You Actually Take Home in 2026

Your Leave and Earnings Statement shows a base pay number, but that's not what hits your bank account. Between federal taxes, FICA, TSP contributions, SGLI premiums, and potentially state taxes, your actual take-home pay is significantly less than the 2026 military pay chart suggests. A military pay calculator after taxes helps you see the real number—the amount you can actually budget with.

This guide breaks down every deduction that comes out of your military paycheck, walks through a real-world example for an E-5 at Fort Liberty, and shows you exactly how to calculate your net military pay for 2026. If you want the quick answer, our Final Pay Calculator does the math automatically.

What Gets Deducted from Military Pay

Before you can calculate your military take home pay, you need to understand what comes out of each paycheck. Military pay deductions fall into two categories: mandatory withholdings and voluntary allotments. Here's what you'll typically see on your Leave and Earnings Statement (LES):

Mandatory deductions:

• Federal income tax — Based on your taxable income, filing status, and W-4 elections. Only base pay and special pays are taxable; BAH and BAS are not.
• Social Security tax (OASDI) — 6.2% of base pay, up to the $176,100 wage cap in 2026.
• Medicare tax — 1.45% of base pay with no income cap.
• State income tax — Varies from 0% to over 10% depending on your state of legal residence. Nine states have no income tax at all.

Common voluntary deductions:

• TSP contributions — Traditional TSP reduces your taxable income; Roth TSP does not. The BRS automatically enrolls you at 5% to capture the full DoD match.
• SGLI (Servicemembers' Group Life Insurance) — $25/month for $400,000 in coverage. Optional, but nearly all service members carry it.
• Tricare dental/vision premiums — Tricare Prime has no premium for active duty, but dental and vision plans for family members are deducted from pay.
• Armed Forces Retirement Home (AFRH) — $0.50/month, deducted from all active duty paychecks.

For a detailed walkthrough of every line on your LES, see our guide on how to read your LES. To understand how your 2026 base pay was determined, read our breakdown of 2026 military pay rates.

Example: E-5 Take-Home Pay in 2026

Let's walk through a concrete example. Our service member is an E-5 (Sergeant) with 6 years of service, married filing jointly with one child, stationed at Fort Liberty, North Carolina. They contribute 5% to traditional TSP and carry SGLI.

First, the gross pay picture from the Military Pay Calculator:

Now let's subtract each deduction from the taxable base pay of $4,110:

That's $5,456.83 in the bank each month out of $6,392.95 gross—roughly 85% of total compensation. The effective tax rate on base pay alone is about 22.8%, but because BAH and BAS are completely tax-free, the effective rate on total compensation is only about 14.6%. You can see the full 2026 pay chart to look up base pay for any rank and years of service.

Want to run this for your own situation? Our Final Pay Calculator lets you input your rank, years of service, location, filing status, and deductions to see your exact take-home number.

Federal Tax on Military Pay

Federal income tax is typically the largest single deduction from your military paycheck. But here's the key advantage of military compensation: only base pay and special pays are subject to federal income tax. BAH, BAS, and most other allowances are completely excluded from taxable income.

This means the Military Pay Calculator shows your total compensation, but your taxable income is significantly lower. For our E-5 example, total monthly compensation is $6,392.95 but only $4,110 is subject to federal tax—just 64% of the total.

Federal tax brackets for 2026 (married filing jointly) that typically apply to enlisted members:

Taxable Income	Tax Rate
$0 – $23,850	10%
$23,851 – $96,950	12%
$96,951 – $206,700	22%
$206,701 – $394,600	24%

Most enlisted members fall entirely within the 10% and 12% brackets. Even senior NCOs and most officers stay within the 22% bracket. After the standard deduction ($30,000 for MFJ in 2026) and the child tax credit ($2,000 per qualifying child), many military families owe significantly less than the bracket percentages suggest.

Traditional TSP contributions further reduce your taxable income, which is why they're subtracted before calculating federal tax in the example above.

State Taxes for Military Members

State income tax is the most variable part of the military pay calculator after taxes equation. The Servicemembers Civil Relief Act (SCRA) says you pay state taxes based on your state of legal residence, not where you're stationed. This gives you some control over your state tax bill.

States with no income tax (best case): Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming. If your legal residence is one of these states, you pay zero state income tax on your military pay.

States that exempt active-duty military pay: Several states fully exempt military pay from state income tax even though they tax other income. Illinois and Pennsylvania are notable examples. Many other states offer partial exemptions or deductions—the specifics change frequently, so verify with your state's department of revenue.

Combat zone tax exclusion (CZTE): If you serve in a designated combat zone for even one day during a month, your entire month's pay is excluded from federal income tax (for enlisted members). Officers have the exclusion capped at the highest enlisted pay rate plus imminent danger pay. FICA taxes are also excluded in combat zones, making this one of the most significant tax benefits in the military.

Choosing your state of legal residence wisely can save you thousands of dollars per year. An E-7 living in California (top rate ~12.3%) versus Florida (0%) could save over $4,000 annually in state taxes alone.

TSP Contributions

The Thrift Savings Plan is the military's version of a 401(k), and your contribution choice directly affects your take-home pay and tax bill. Under the Blended Retirement System (BRS), the DoD automatically enrolls new service members at 5% of base pay and matches up to 5%.

Traditional TSP: Contributions are pre-tax, meaning they reduce your taxable income today. Our E-5 contributing 5% ($205.50/month) lowers their annual taxable income by $2,466, saving roughly $296 per year in federal taxes at the 12% bracket. The trade-off is you'll pay taxes on withdrawals in retirement.

Roth TSP: Contributions are after-tax, so they don't reduce your current tax bill. Your take-home pay is lower compared to traditional TSP at the same contribution rate. However, all growth and withdrawals in retirement are completely tax-free.

For most junior and mid-grade military members in the 10% or 12% tax bracket, Roth TSP is often the better long-term choice since you're paying taxes at a relatively low rate now and getting tax-free growth for decades. But traditional TSP gives you more take-home pay today. Our TSP Calculator can help you model both options and see the long-term growth projections.

The 2026 TSP contribution limit is $23,500, with an additional $7,500 catch-up contribution if you're over 50. The DoD match works like this:

• Automatic 1%: DoD contributes 1% of base pay regardless of your contribution.
• Matching: DoD matches dollar-for-dollar on the first 3% you contribute, then 50 cents on the dollar for the next 2%.
• Total at 5% contribution: You put in 5%, DoD adds 5% = 10% of base pay going into your TSP every month.

Not contributing at least 5% means leaving free money on the table. At $4,110 base pay, that's $205.50/month in matching you'd miss.

SGLI and Tricare

These two deductions are small compared to taxes and TSP, but they're on every service member's LES and affect your net pay calculation.

SGLI (Servicemembers' Group Life Insurance): The maximum coverage of $400,000 costs just $25.00 per month. You can elect lower coverage in $50,000 increments or decline entirely, but $400K is the default and what most service members carry. At $25/month for $400K of term life insurance, SGLI is one of the best deals in the military—comparable civilian coverage for a 25-year-old would cost $30–$50/month. Traumatic SGLI (TSGLI) coverage is an additional $1.00/month.

Tricare for active duty: Tricare Prime has zero premium for the service member. Medical care at military treatment facilities (MTFs) is free, and there are no copays for most referrals. This is a massive benefit that doesn't show as a deduction but represents thousands in value.

Tricare for family members: Tricare Prime for dependents also has no enrollment fee for active duty families. However, the Tricare Dental Program (TDP) costs approximately $14.58/month for single coverage or $38.97/month for family coverage. Federal Employees Dental and Vision Insurance Program (FEDVIP) vision plans range from $10–$50/month depending on the plan and coverage level.

When running a military take home pay calculator, don't forget to include SGLI and any dental/vision premiums in your deductions. They're easy to overlook but add up to $50–$75/month for a service member with family coverage.

How to Calculate Your Net Military Pay

Here's the step-by-step process to calculate your military net pay for 2026. You can do this by hand or use the Final Pay Calculator to do it instantly.

Step 1: Find your base pay. Look up your rank and years of service on the Military Pay Calculator or the 2026 military pay chart. This is your starting taxable income.

Step 2: Subtract pre-tax deductions. If you contribute to traditional TSP, subtract that amount. This gives you your adjusted taxable income. Roth TSP contributions do not reduce taxable income.

Step 3: Calculate federal income tax. Using your adjusted taxable income, filing status, and number of dependents, estimate your federal withholding. For a rough estimate, most enlisted members in the 12% bracket can multiply adjusted annual taxable income (minus the standard deduction) by 12% and divide by 12.

Step 4: Calculate FICA taxes. Multiply your base pay by 7.65% (6.2% Social Security + 1.45% Medicare). This applies to the full base pay amount before TSP deductions.

Step 5: Calculate state income tax. If your state of legal residence has income tax, apply the applicable rate to your military base pay minus any state-specific deductions or exemptions.

Step 6: Subtract remaining deductions. SGLI ($25/month for $400K), AFRH ($0.50/month), dental/vision premiums, and any other allotments.

Step 7: Add tax-free allowances. Add your full BAH and BAS amounts. These are not reduced by any deductions.

The result is your military net pay—what actually hits your bank account on the 1st and 15th. Our Final Pay Calculator handles all of these steps automatically and accounts for your specific situation.

Frequently Asked Questions

How much does an E-5 take home after taxes?

An E-5 with 6 years of service earns $4,110 per month in base pay. After federal taxes, FICA, and typical deductions like TSP and SGLI, take-home base pay is roughly $3,155 to $3,350 depending on filing status and state taxes. When you add tax-free BAH and BAS, total take-home can exceed $5,400 per month. Use the Final Pay Calculator to get an exact number for your situation.

Is BAH taxed?

No. Basic Allowance for Housing (BAH) is completely tax-free at the federal, state, and FICA level. It does not appear as taxable income on your W-2. The same applies to Basic Allowance for Subsistence (BAS). This is one of the biggest financial advantages of military compensation and a key reason why the Military Pay Calculator shows total compensation that is much higher than your taxable income.

What percentage of military pay goes to taxes?

For most enlisted service members, roughly 15% to 22% of base pay goes to combined federal income tax and FICA (Social Security and Medicare). The exact percentage depends on your filing status, number of dependents, state of legal residence, and pre-tax deductions like traditional TSP contributions. State taxes can add another 0% to 10% on top of that.

Do military members pay Social Security tax?

Yes. Active duty military members pay the same FICA taxes as civilian workers: 6.2% for Social Security (on income up to $176,100 in 2026) and 1.45% for Medicare, totaling 7.65% of base pay. This is withheld automatically from every paycheck. The upside is that military service counts toward your Social Security benefit calculation.

Which states don't tax military pay?

Nine states have no income tax at all: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. Additionally, many states fully or partially exempt active duty military pay from state income tax, including Illinois and Pennsylvania among others. Under the SCRA, you pay state taxes based on your state of legal residence, not your duty station, so choosing wisely can save thousands annually.

How does the combat zone tax exclusion work?

When serving in a designated combat zone, enlisted members have all military pay excluded from federal income tax for every month they serve at least one day in the zone. For officers, the exclusion is capped at the highest enlisted pay plus imminent danger pay. FICA taxes are also excluded. This applies to base pay, special pays, bonuses, and reenlistment bonuses received while in the combat zone.