Reserve & National Guard Drill Pay After Deductions

Reserve and National Guard drill pay is subject to the same payroll deductions as active duty pay. These include:

• Federal income tax — withheld based on your W-4 filing status and tax brackets
• State income tax — varies by your state of legal residence (9 states have no income tax)
• Social Security (FICA) — 6.2% of drill pay
• Medicare — 1.45% of drill pay
• TSP contributions — if enrolled in the Thrift Savings Plan
• SGLI premiums — Servicemembers' Group Life Insurance
• Tricare Reserve Select — if enrolled in TRS health coverage

Tricare Reserve Select (TRS) premiums for 2026 are:

• Member only: $57.88 per month
• Member + family: $286.66 per month

TRS is a premium-based health plan available to qualified Selected Reserve members who are not on active duty. Premiums are paid monthly and are not prorated based on drill attendance.

Yes, reservists pay both Social Security tax (FICA) at 6.2% and Medicare tax at 1.45% on all drill pay. These are the same payroll tax rates that apply to active duty military pay and civilian wages.

The Social Security wage base for 2026 is $176,100. Drill pay alone is unlikely to exceed this cap, but if you have civilian employment income as well, combined wages above this threshold are exempt from the 6.2% Social Security portion (Medicare has no cap).

Yes, contributing to the Thrift Savings Plan (TSP) as a reservist is highly recommended, especially if you are under the Blended Retirement System (BRS). Even a 5% contribution will maximize the government matching contribution under BRS.

Traditional TSP contributions reduce your taxable income, lowering your current tax bill. Roth TSP contributions are made after-tax but grow tax-free. Either way, the TSP offers extremely low expense ratios compared to civilian 401(k) plans.

The 2026 annual TSP contribution limit is $23,500 (under age 50) or $31,000 (age 50+).