Military Pay Calculator

Q: Why is BAH tax-free and how much is it worth?

BAH (Basic Allowance for Housing) is excluded from federal income tax, state tax, and FICA (7.65%). This makes $2,000/mo in BAH equivalent to roughly $2,600-$2,800/mo in civilian pre-tax salary. BAH rates vary by duty station, rank, and dependent status, and are updated annually.

Q: What is the Blended Retirement System (BRS) and how does TSP matching work?

BRS combines a 2.0% per year pension with TSP matching: automatic 1% plus up to 4% match (contribute 5% to max it). BRS also includes continuation pay at 12 years. Key advantage: you keep TSP even if you leave before 20 years. Legacy system offers 2.5% per year but no TSP match and $0 if you separate before 20.

Q: How do I calculate the civilian salary equivalent of my military pay?

Add base pay + BAH + BAS, then include benefits value (Tricare ~$7,500/yr, TSP match, tuition assistance). Account for the tax advantage of non-taxable BAH/BAS by dividing by (1 - marginal rate). A typical E-5 with 6 years earning $74,000 military comp needs roughly $90,000-$95,000 civilian to break even.

Q: How much retirement pay will I get after 20 years of military service?

Under BRS: 2.0% x 20 years = 40% of high-3 average base pay, plus accumulated TSP. Under Legacy: 2.5% x 20 = 50% of high-3. For an E-7 retiring at 20 years with ~$5,500/mo high-3 average, BRS pension is ~$2,200/mo plus $200K-400K+ in TSP. Legacy pension is ~$2,750/mo with no TSP match.

Calculate your 2026 military compensation including base pay, BAH, and BAS. Compare military vs civilian salary, project your TSP balance under the Blended Retirement System, and estimate retirement pay.

Calculate your total military compensation including base pay, BAH, and BAS

Pay grade

Years of service

0-40 years

Duty station cost of living

Determines BAH rate tier

Dependents

BAH type

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How to Use This Calculator

Military Pay tab

The default tab. Select your pay grade (E-1 through E-9, W-1 through W-5, O-1 through O-10), years of service, and duty station cost of living. The calculator computes your 2026 base pay, BAH, BAS, total monthly and annual compensation, and a full taxable vs non-taxable breakdown showing the real tax advantage of military allowances. Expand "More options" to set dependent status and BAH type.

Military vs Civilian tab

Compare your total military compensation to a civilian job offer. Enter the civilian salary, health insurance cost, and 401(k) match. The calculator adds Tricare value (~$7,500/yr), TSP match (5% BRS), and the tax advantage of non-taxable BAH/BAS to show the equivalent civilian salary you would need to match your military pay.

TSP & BRS tab

Project your TSP balance at retirement with government matching, and estimate your monthly retirement pay under the Blended Retirement System (BRS) or Legacy High-3. See continuation pay at 12 years, lump sum options, and whether your projected years of service qualify for retirement.

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The Formula

Military compensation includes base pay (taxable) plus two tax-free allowances:

Total Monthly Compensation = Base Pay + BAH + BAS

Annual Compensation = Total Monthly × 12
Tax-Free Income = (BAH + BAS) × 12
Tax Advantage = Tax-Free Income × (Marginal Tax Rate + 7.65% FICA)

Equivalent Civilian Salary = Base Pay + (Tax-Free Income / (1 − Marginal Rate)) + Tricare Value + TSP Match

BRS Retirement Pay = 2.0% × Years of Service × High-3 Average Base Pay
Legacy Retirement Pay = 2.5% × Years of Service × High-3 Average Base Pay
TSP Future Value = Σ (Monthly Contribution × (1 + r)ⁿ)

The key financial advantage of military pay is the tax-free status of BAH and BAS. For an E-5 in a medium-cost area with dependents, this represents roughly $29,640/year that is not subject to federal income tax or FICA — equivalent to earning $8,000–$10,000 more in civilian pre-tax salary.

Under the Blended Retirement System (BRS), service members receive government TSP matching (up to 5% of base pay) plus a reduced pension multiplier (2.0% vs 2.5% legacy). The TSP match partially compensates for the lower pension, especially for those who separate before 20 years.

Example

SSG Martinez — E-5 with 6 years, stationed at Fort Liberty, NC

Staff Sergeant Martinez is an E-5 with 6 years of service, married with one child, stationed at Fort Liberty (medium-cost area). She contributes 5% to TSP under BRS and is considering a civilian cybersecurity job offer at $65,000.

Military Pay tab

Base pay (E-5, 6 yrs)$3,736/mo

BAH (medium, w/ dependents)$2,010/mo

BAS (enlisted)$460/mo

Total monthly compensation$6,206/mo

Total annual compensation$74,472/yr

Tax-free portion (BAH + BAS)$29,640/yr

Martinez earns $74,472/yr total, but only $44,832 is taxable. The $29,640 in tax-free BAH/BAS saves her roughly $8,700 in taxes compared to earning the same amount as fully taxable civilian income.

Military vs Civilian tab

Total military value (incl. Tricare, TSP match)$84,210/yr

Civilian offer$65,000/yr

Civilian after health insurance & taxes$48,200/yr

Equivalent civilian salary needed~$92,000/yr

To match her military compensation, Martinez would need a civilian salary of approximately $92,000. The $65,000 offer is significantly below her current total military value.

FAQ

How is military base pay determined in 2026? ▼

Military base pay is set by Congress and published in annual pay tables. The 2026 pay tables reflect a 4.5% raise effective January 1, 2026. Pay depends on two factors: your pay grade (rank) and years of service. Enlisted members range from E-1 ($2,037/mo) to E-9 ($7,970/mo at 26+ years). Officers range from O-1 ($3,826/mo) to O-10 ($18,912/mo). Pay increases at specific service milestones (2, 3, 4, 6, 8 years, etc.).

Why is BAH tax-free and how much is it worth? ▼

Basic Allowance for Housing (BAH) is a tax-free allowance that covers housing costs based on your duty station, rank, and dependent status. Because BAH is excluded from federal and state income tax AND FICA (7.65%), it is worth significantly more than the same amount in taxable salary. For example, $2,000/mo in BAH is equivalent to roughly $2,600–$2,800/mo in civilian pre-tax salary, depending on your tax bracket. BAH rates are updated annually based on local housing costs.

What is the Blended Retirement System (BRS) and how does TSP matching work? ▼

The BRS (effective Jan 2018) combines a reduced pension (2.0% per year vs 2.5% legacy) with TSP matching. The government automatically contributes 1% of your base pay to TSP, plus matches dollar-for-dollar on the next 3% and 50 cents on the dollar for the next 2% — totaling up to 5% if you contribute at least 5%. BRS also includes continuation pay (2.5–13× monthly base) at 12 years. Key advantage: even if you leave before 20 years, you keep your TSP balance. Under the legacy system, separating before 20 years meant $0 in retirement.

How do I calculate the civilian salary equivalent of my military pay? ▼

To find your civilian equivalent: start with your total military compensation (base pay + BAH + BAS), then add the value of benefits (Tricare ~$7,500/yr, TSP match, tuition assistance, 30 days paid leave). Then account for the tax advantage of non-taxable BAH/BAS by dividing that amount by (1 − your marginal tax rate). A typical E-5 with 6 years earning $74,000 in total military compensation would need roughly $90,000–$95,000 in civilian salary to break even, before accounting for GI Bill value.

How much retirement pay will I get after 20 years of military service? ▼

Under BRS: 2.0% × 20 years = 40% of your high-3 average base pay. For an E-7 retiring at 20 years with a high-3 average of ~$5,500/mo, that is about $2,200/mo ($26,400/yr) in pension, plus whatever you have accumulated in your TSP. Under Legacy: 2.5% × 20 = 50% of high-3, which would be ~$2,750/mo. The BRS pension is lower but the TSP matching (over 20 years at 7% return) can accumulate $200,000–$400,000+, potentially making total BRS retirement more valuable.

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