Military BAH Calculator
Budget your 2026 Basic Allowance for Housing and see what tax-free BAH is worth in civilian salary
Sets your marginal tax bracket
0 if your state exempts military pay
Note: Look up your exact BAH on the official DoD rate lookup — rates are set per Military Housing Area, paygrade, and dependency status, and are adjusted every January. Tax-equivalent figures use 2026 federal brackets and FICA rates as an estimate; individual tax situations vary.
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Quick summary
Enter your BAH (from the official DoD lookup), rent, and utilities to see your monthly surplus or out-of-pocket cost — plus what your tax-free BAH is worth in civilian gross salary. 2026 BAH rates rose an average of 4.2% effective January 1, 2026. Because BAH is exempt from federal income tax and FICA, $2,400/month in BAH is typically worth $2,900–$3,300/month in equivalent civilian pay.
Reviewed by Simple Calculators TeamLast reviewed
For planning only — not financial or tax advice. Results are estimates based on your inputs and the stated assumptions. Confirm important decisions with a qualified professional.
How to use this calculator
- Enter the inputs requested by the calculator.
- Choose the units or options that match your situation and review the assumptions.
- Run or update the calculation to see the result.
- Review the result, breakdown, and formulas shown on the page.
- Check the inputs, units, dates, and limitations before saving or sharing the result.
Frequently asked questions
How much did BAH go up in 2026?
The Department of Defense set 2026 BAH rates with an average increase of 4.2%, effective January 1, 2026, following 5.4% increases in both 2024 and 2025. Your exact change depends on your Military Housing Area — some areas rose more, some less, and rate protection means your rate never decreases while you stay in the same area.
Is BAH taxable?
No. BAH is completely exempt from federal income tax, Social Security, and Medicare taxes, and states do not tax it. That makes each BAH dollar worth roughly 20–35% more than a salary dollar, depending on your tax bracket — this calculator quantifies it for your situation.
How is BAH determined?
BAH is set annually per Military Housing Area (about 300 areas), paygrade, and dependency status (with or without dependents), based on surveyed local rental and utility costs for adequate housing. Duty station ZIP code — not where you actually live — determines your area.
What happens if my rent is more or less than my BAH?
You keep the difference if you spend less, and pay out of pocket if you spend more — BAH is a flat allowance, not a reimbursement. BAH is designed to cover about 95% of average housing and utility costs for your area and grade, so a small out-of-pocket amount is common.
Does BAH change if rates go down next year?
Individual rate protection means your BAH does not decrease while you remain at the same duty station with the same status. You get the new rate only if it is higher, or when you PCS, are promoted, or your dependency status changes.
Key terms
- BAH
- Basic Allowance for Housing — a tax-free monthly allowance for service members not living in government quarters, set by location, paygrade, and dependency status.
- MHA
- Military Housing Area — one of ~300 geographic areas (grouped by ZIP code) with its own BAH rate table.
- Rate Protection
- The rule that a member's BAH never decreases while they stay in the same location and status, even if published rates drop.
- Tax-Equivalent Value
- The civilian gross salary needed to match a tax-free benefit after federal income tax and FICA — what BAH is really worth in a job-offer comparison.
Methodology, sources & limitations
This page shows the formula, assumptions, and limitations used for this estimate. Rates, thresholds, and other time-sensitive inputs can change, so verify them against the relevant official source before relying on a result.
For our review approach and the primary sources we consult, see the methodology and source policy. If you spot an outdated figure or formula, please contact us with a correction.
BAH Explained: The Service Member's Housing Allowance Guide
BAH is often a quarter or more of total military compensation, yet how it's set — and what it's really worth after taxes — is opaque to most who receive it. This guide covers the mechanics, the 2026 rates, rate protection, and how to weigh on-base versus off-base living.
How your rate is set
The Defense Department surveys rental and utility costs every year in about 300 Military Housing Areas, anchored to specific housing types per paygrade — an E-5 rate tracks a 2-bedroom apartment or townhouse, an O-5 rate a 4-bedroom single-family house. Your rate depends on exactly three things: the MHA of your duty station's ZIP code (not where you actually live), your paygrade, and whether you have dependents.
Since 2015, rates are calibrated to cover about 95% of surveyed housing-plus-utility costs, leaving roughly 5% out of pocket for the average member renting the anchor housing type. Spend less and you keep the difference — BAH is a flat allowance, not a reimbursement, and pocketing the surplus is completely legitimate.
2026 rates: what changed
The 2026 tables took effect January 1, 2026 with an average increase of 4.2%, following 5.4% increases in both 2024 and 2025. Averages hide wide variation: high-growth rental markets saw larger jumps while some areas were flat. The only authoritative source for your number is the official DoD rate lookup linked in the calculator — third-party BAH tables are frequently stale.
The department estimates it will pay about $29.9 billion in BAH to roughly one million service members in 2026.
Rate protection: your BAH can't go down
Individual rate protection means your BAH never decreases while your situation is unchanged. If the published 2027 rate for your MHA and grade drops, you keep your higher 2026 rate; if it rises, you get the increase. You snap to the current published table only when something changes: a PCS to a new MHA, a reduction in grade, or a change in dependency status. Promotions work one-way — you get the higher of your protected rate or the new grade's rate.
Practical implication: mid-lease rate drops can't squeeze you, so signing a 12-month lease at the start of a tour carries less rate risk than renters assume.
The BAH variants
| Type | Who gets it | What it covers |
|---|---|---|
| BAH with dependents | Members with a spouse or qualifying dependents | The standard higher rate — one rate regardless of family size |
| BAH without dependents | Single members not in government quarters | The standard lower rate |
| Partial BAH | Single members living in the barracks | A small offset (varies by grade) |
| BAH-Differential | Members in quarters paying child support | The with/without dependent difference |
| Overseas Housing Allowance (OHA) | Members stationed outside the US | A reimbursement-style system — different rules entirely |
What tax-free really means in dollars
BAH is excluded from federal income tax, Social Security, and Medicare taxes. At a 12% federal bracket plus 7.65% FICA, every BAH dollar is worth what roughly $1.24 of civilian salary delivers after tax; at the 22% bracket it's about $1.42. A $2,400/month allowance is therefore equivalent to roughly $35,000–41,000 of civilian gross salary — the number this calculator computes precisely from your base pay and filing status.
This matters most in two places: comparing military and civilian job offers (recruiters' salary comparisons routinely ignore it), and mortgage qualification — lenders count BAH as income, and its tax-free status effectively boosts your qualifying power.
On-base housing vs taking the allowance
- On-base/privatized housing typically takes your entire BAH as rent regardless of the unit's market value — you can neither save the surplus nor pay extra for more house.
- Off-base renting under your BAH banks the difference every month. The calculator's surplus figure annualized is your savings potential.
- Buying converts BAH into equity and, with rate protection plus annual increases, historically rising payments-coverage — but transaction costs mean short tours (under ~3 years) favor renting; run our rent vs buy calculator with your numbers.
- Utilities count: BAH is calibrated to rent plus average utilities, so a cheap-rent apartment with brutal utility bills may net out worse than it looks.