Deployment Pay Calculator

Combat Zone Tax Exclusion (CZTE)

Service members in a designated combat zone receive federal income tax relief under 26 U.S.C. § 112. Enlisted members and warrant officers have all military pay excluded from federal income tax for any month they serve in the combat zone — even one day in a month qualifies the entire month.

Officers receive the same exclusion but capped at the highest enlisted rate (E-9 maximum base pay) plus the HFP/IDP amount — approximately $10,520/month in 2026. Base pay above that cap remains taxable. State income tax treatment varies by state — many states follow the federal exclusion, others do not.

Savings Deposit Program (SDP)

The SDP is a government-backed savings account offering a 10% annual return — available only to service members deployed to designated combat zones for 30 or more consecutive days. The maximum deposit is $10,000; interest is compounded quarterly at 2.5% per quarter.

SDP interest continues for 90 days after leaving the combat zone, making the full return slightly higher than the deployment window suggests. The SDP is administered through DFAS — open an account through your unit finance office or myPay.

Hostile Fire Pay / Imminent Danger Pay

HFP and IDP are both authorized under 37 U.S.C. § 310 at the same rate — $225/month in 2026. HFP is typically paid as a flat monthly rate for members engaged with or under threat of hostile fire. IDP may be prorated on a daily basis depending on the type of deployment and qualifying conditions — verify with your finance office how your specific deployment is categorized.

When receiving HFP or IDP, Hardship Duty Pay is capped at $100/month (down from $150/month maximum) per DoD FMR Volume 7A, Chapter 17.

Family Separation Allowance (FSA)

FSA is authorized when a service member with dependents is deployed away from them for 30 or more consecutive days. The FY2026 NDAA increased FSA from $250 to $300/month — the first increase since 2002. FSA is a non-taxable allowance.

FSA requires dependents to be enrolled — it is not paid to single members without dependents. Authorization is under 37 U.S.C. § 427.

TSP during deployment

During months in a designated combat zone, the total annual additions limit (IRC § 415(c)) rises from $24,500 to $72,000 in 2026. This allows higher overall contributions to TSP from tax-exempt combat-zone pay.

Important: Roth TSP contributions remain capped at the $24,500 elective deferral limit — even in a combat zone. Contributions above $24,500 from tax-exempt combat-zone pay go into the traditional tax-exempt portion of TSP, not Roth. You cannot contribute $72,000 to Roth TSP.

Plan your contribution percentage in advance; DFAS processes TSP elections and changes through myPay.

Hardship Duty Pay — Location (HDP-L)

HDP-L is a tiered allowance authorized under 37 U.S.C. § 305 for service in locations designated as hardship duty areas. The four tiers are $50, $100, $150, and $0 (no HDP). The level is determined by the specific deployment location designation, not by personal election.

HDP-L is capped at $100/month when also receiving HFP or IDP. If your deployment location is designated at the $150 tier but you are also receiving HFP, you receive $100 HDP-L — not $150.