Military Final Pay Calculator

Basic pay is determined by your pay grade (rank) and years of creditable service. Rates come from the DoD Financial Management Regulation (DoD 7000.14-R, Volume 7A, Chapter 1).

The January 2026 rates reflect a 3.8% pay raise over 2025 rates, effective January 1, 2026.

Pay caps apply to officers: O-7 through O-10 are capped at Executive Schedule Level II and O-6 and below at Level V.

Federal tax is estimated using 2026 IRS tax brackets applied to your taxable income only (base pay minus TSP contributions). BAH and BAS are not taxable.

The standard deduction is applied based on filing status:

• Single: $15,200 standard deduction
• Married Filing Jointly: $30,400 standard deduction
• Head of Household: $22,800 standard deduction

The monthly withholding shown is the estimated annual tax divided by 12. Actual withholding may differ based on your W-4 elections and other factors.

State tax is estimated using a simplified flat effective rate for each state. Nine states have no income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming.

Military members pay state tax based on their state of legal residence (domicile), not their duty station state. The SCRA (Servicemembers Civil Relief Act) protects you from being taxed by your duty station state if it differs from your domicile.

Actual state tax varies based on brackets, deductions, and credits specific to each state.

Social Security (FICA): 6.2% of base pay, up to the 2026 wage base of $176,100. BAH and BAS are exempt.

Medicare: 1.45% of base pay with no wage base limit. An additional 0.9% Medicare surtax applies to wages over $200,000 (single) or $250,000 (married filing jointly), but this is not included in the estimate as it rarely applies to base pay alone.

Traditional TSP contributions are deducted pre-tax from base pay, reducing your taxable income. The 2026 contribution limit is $23,500 (under age 50) or $31,000 (age 50+).

This calculator estimates Traditional TSP only. Roth TSP contributions would not reduce taxable income but would still reduce take-home pay.

The military also offers automatic (1%) and matching (up to 5%) TSP contributions under the Blended Retirement System (BRS), but those are not deductions from your pay.

SGLI premiums are $0.06 per $1,000 of coverage per month, plus $1.00 for Traumatic Injury Protection (TSGLI). Coverage is available from $50,000 to $500,000 in $50,000 increments.

At maximum coverage ($500,000), the monthly premium is $31.00. Coverage is automatic at $500,000 unless you elect a lower amount or decline.

Standard military pay deductions include federal income tax withholding, state income tax (varies by state of legal residence), Social Security tax (6.2% of base pay), Medicare tax (1.45% of base pay), TSP contributions if enrolled, and SGLI premiums.

BAH and BAS are tax-free and not subject to FICA withholding. Additional deductions may include AFES, loan repayments, or allotments.

The 2026 military pay raise was 3.8%, effective January 1, 2026. Base pay rates for all pay grades increased across the board.

Federal income tax on military pay is calculated only on base pay (taxable income). BAH and BAS are tax-free and excluded from gross income for tax purposes.

The withholding amount depends on your filing status and W-4 elections. This calculator uses standard IRS tax brackets and standard deductions to provide an estimate.

SGLI (Servicemembers' Group Life Insurance) provides low-cost life insurance coverage up to $500,000. The cost is $0.06 per $1,000 of coverage per month, plus $1.00 for Traumatic Injury Protection (TSGLI).

At maximum $500,000 coverage, the monthly premium is $31.00 ($30.00 + $1.00 TSGLI).

Nine states have no state income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming.

Military members can choose their state of legal residence (domicile), and many choose a no-income-tax state. The SCRA protects service members from being taxed by their duty station state if it differs from their domicile state.