Category:
Pay & Allowances

Subcategory:
Taxes

Created:
2005-12-12

Modified:
2015-03-18

Taxable and Non-taxable Pay

Question

Which part of my pay is taxable?

Answer

In general, basic pay, special pays, incentive pays, bonuses and separation pays are taxable.  However, some allowances are also taxable like CONUS COLA.  Also, pay that is usually taxable may be non-taxable if a member serves in a combat zone or qualified hazardous duty area.  

For specific taxability of entitlements, as well as regulations regarding combat zone tax exclusion for both enlisted and officers, see the DoD Financial Management Regulation, Volume 7A, Chapter 44

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