If you are a military member who serves in a combat zone (defined below), you can exclude certain pay from your income when determining your taxes.
What Can Be Excluded
Enlisted personnel, warrant officers, and commissioned warrant officers can exclude the following from their income:
- Active duty pay earned in any month you served in a combat zone
- Imminent danger/hostile fire pay
- A reenlistment bonus if you reenlisted in a month you served in a combat zone
- Pay for selling back leave in any month you served in a combat zone
- Some other pay received in a combat zone
The amount of pay subject to the combat zone tax exclusion each month for O-1 and above is limited to the monthly basis pay for the senior E-9 of each branch plus the monthly hostile fire pay amount.
See our Combat Zone Tax Exclusion page for up to date information.
Keep Up With Military Pay Updates
Military pay benefits are constantly changing. Make sure you're up-to-date with everything you've earned. Subscribe to Military.com to receive updates on all of your military pay and benefits, delivered directly to your inbox.
