There are three main types of military pay: basic pay, allowances, and special and incentive pays.

This type of pay is the main component of a Service member's compensation. The amount is determine by grade and years of service. Basic pay is a taxable income, with potential exceptions if serving in a designated combat zone. 

Allowances are the second most important element of military pay. Allowances are additional compensations used to address specific needs, such as food or housing. The allowances available, as well as the allowances amounts, vary among Service members. Unlike basic pay, most allowances are not taxed.

S&I pays are additional pays designed to provide compensation for special qualifications or service conditions. Similar to basic pay, S&I pays are taxable with potential exceptions if serving in a designated combat zone.  

• Tax Information
• Recoupment
• Retirement