Military BAH + BAS vs Civilian Comp Calculator

Military base pay looks modest ($45-90K for E-5 through O-3) but BAH (Basic Allowance for Housing) and BAS (Basic Allowance for Subsistence) are completely tax-free, TRICARE covers your family’s healthcare with $0 deductible in most plans, and the 20-year pension is worth $1-1.8M present value. Once you gross up the tax-free portion and add the pension, total comp routinely exceeds $150-220K civilian-equivalent for mid-career service members.

Why Tax-Free Allowances Matter So Much

BAH alone runs $1,800-3,500/month for E-5 through O-4 depending on duty station and dependents — completely federal and state tax-free. BAS is a flat $460.25/month for enlisted, $316.98/month for officers. TRICARE Prime is fully covered for active duty and their families, equivalent to a $20-28K/year employer family health plan in the civilian market. Combined, these allowances are typically $35-55K/year of pure non-taxable value. To equal that in civilian taxable income at a 24% combined marginal rate, you’d need an extra $46-72K in salary. This is why mid-career service members often look under-paid on base but match civilian total comp once allowances are grossed up.

The 20-Year Pension Cliff

Military retirement vests at 20 years of service with zero partial vesting. Leaving at 19 years and 11 months forfeits 100% of the pension. Legacy High-3 (entered service before 2018): 2.5% × high-3 base pay × years of service = 50% of high-3 base at 20 years, payable for life starting immediately at separation, with COLA. Blended Retirement System (post-2018): 2.0% × high-3 × YOS = 40% of high-3 at 20 years, plus TSP match up to 5% throughout service. BRS is more portable (you keep the TSP if you leave early) but the pension is 20% smaller. Run the math at year 8-10 — if you’re going to make 20, stay; if not, leave before too much opportunity cost piles up.

Last updated May 2026. Sources: DOD Military Pay, VA Benefits.