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Benefits · Taxes

Keep more of your pay

Tax breaks you've earned: combat pay, your home state, and free filing.

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Taxes

Tax breaks you've earned: combat pay, your home state, and free filing. Every fact links to the official source. Last checked Oct 20, 2026.

3benefits on this page✓checked Oct 20, 2026↗official source on every card

Combat zone tax exclusion

What you get

Pay you earn in a designated combat zone can be left off your taxable income.

Key facts
  • Enlisted and warrant officers: exclude all military pay for each month in a combat zone.
  • Commissioned officers: capped at the highest enlisted pay rate plus imminent danger/hostile fire pay, per month.
  • One or more days in a combat zone during a month counts as the full month.
  • Still subject to Social Security and Medicare taxes.
How to apply

How to get it: Nothing to file. Your pay office leaves it off your W-2. If your W-2 shows full pay, ask your pay office for a corrected W-2.

Go to the official page →

Source: IRS.gov · checked Oct 20, 2026

Keep your state of legal residence (SCRA / MSRRA)

What you get

Moving on orders doesn't have to change the state you pay income tax to.

Key facts
  • The SCRA lets active-duty members keep their legal residence in the place they consider home.
  • The Military Spouses Residency Relief Act lets spouses keep a residence too.
  • Since the Veterans Auto and Education Improvement Act of 2022, spouses can choose the service member's residence, their own, or the duty station state, for tax purposes.
How to apply

How to get it: Talk to your installation legal office or a MilTax consultant before you change anything, and keep proof of your residence (voting, license, vehicle registration).

Go to the official page →

Source: Military OneSource · checked Oct 20, 2026

MilTax: free tax filing

What you get

Free tax software and expert help built for military life.

Key facts
  • Free for active-duty members, eligible family members, survivors, and recent veterans up to 365 days after separation or retirement.
  • Military OneSource says MilTax software will be available in January 2027 for this filing season.
How to apply

How to get it: Sign up for a launch alert on Military OneSource, or call for a free tax consultation.

Go to the official page →

Source: Military OneSource · checked Oct 20, 2026

Does my state tax military pay?

Pick your state of legal residence. Active-duty pay; Guard/Reserve rules can differ.

All 51 (50 states + DC) per MyAirForceBenefits (official U.S. Air Force), tax year 2025 guidance, checked Oct 20, 2026.

Tax laws change every year and you may still need to file to claim the exemption. Confirm with your state's tax agency (via USA.gov) or a free MilTax consultant.

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