Are people in the Navy's paychecks tax-free? If not, why?

Answer 1

No. Military personnel pay taxes on their base pay and any pro pay, bonuses, etc. Allowances for housing and subsistence (food) are tax free.

When they serve in a declared combat area the pay of enlisted personnel is not subject to Federal Income Tax but is still subject to Social Security and Medicare withholding. State income taxes are up to the individual states but most follow the Federal standard. Officers' pay is tax free up to the highest enlisted pay scale, currently about $5,500 per month. Beyond that level, officer pay is fully taxable even in a war zone.

Why? That's the law.

Answer 2

It's only tax free if you're serving on a carrier or other ship when you cross the straits of Hormez in the middle East to the gulf or are stationed in a middle east country such as Iran, Iraq, Afghanistan, Saudi Arabia, ect. Those areas are tax free. Otherwise, military people stationed anywhere else are considered normal government employees in taxation zones and hence must pay taxes. Give to Cesar what is Cesar's I suppose... lol.

Answer 3

No, the Navy is their job so they pay tax on their income.

Someone in the military doesn't pay taxes though on money earned while they are in a combat zone. I suppose the government figures they've done enough for the country during that time without paying taxes - I agree.

Answer 4

The only way they get tax-free pay is if they're deployed to a war zone and if they re-enlist-their sign-up bonus will be non-taxable.

It's the same for all military members.

Normal pay is not tax free because the government taxes everyone. Nobody gets off scott-free when it comes to taxes.

Answer 5

Any month a member of the military spends at least one day in a war zone, their military compensation for that month is tax free. Otherwise, they are taxed like everyone else.

Answer 6

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