What is the difference between CONUS COLA and OCONUS COLA?

CONUS COLA (37 U.S.C. § 403b, DoD FMR Vol 7A Ch 67) is a taxable allowance paid in a short list of high-cost stateside Military Housing Areas — 17 MHAs in 2026 — and its index changes once a year on January 1. OCONUS COLA (37 U.S.C. § 405, FMR Vol 7A Ch 68) is a non-taxable allowance paid at overseas duty stations where costs exceed the CONUS average; its index comes from DTMO price surveys and is adjusted for exchange rates as often as twice a month. Both are computed as an index percentage of your spendable income.

How is OCONUS COLA calculated?

Per FMR Vol 7A Ch 68 Tables 68-8 and 68-9: find your annual compensation; read your average annual spendable income from the spendable income table at that compensation range and your number of command-sponsored dependents; take your duty station's COLA index, subtract 100 and divide by 100 (an index of 120 = 20%); multiply spendable income by that percentage for the annual COLA; divide by 360 for the daily rate, carried to five decimals. A 30-day month pays 30 times the daily rate. DTMO's Overseas COLA Rate Lookup applies the spendable income table for you.

CONUS COLA is taxable — it is included on your W-2 and subject to federal (and, where applicable, state) income-tax withholding, though not FICA (FMR Vol 7A Table 44-4 Note 12; Ch 45 ¶2.2). OCONUS COLA is non-taxable and does not appear on your W-2.

When does OCONUS COLA start and stop?

It starts the day you report to the new overseas duty station, the effective day of a home-port change, or the day your dependent arrives ahead of you; if MALT Plus is payable on the reporting day, COLA starts the next day (FMR Vol 7A Ch 68 ¶3.2.1). It stops the day before you depart OCONUS on PCS orders or the day before a home-port change takes effect (¶3.2.2), with narrow exceptions such as TDY en route between nearby duty stations.

Why did my OCONUS COLA go down this month?

Two things move it: exchange rates, which OUSD(P&R) reviews and applies as often as twice a month and always in full the next pay period, and the survey-based index. Under the FY2024 NDAA a data-driven index decrease is capped at 10 points and phased in at 2 points per month, while increases take effect the next pay period (DTMO, Overseas COLA Tables). Check the monthly index table for your location on DTMO's site to see which one changed.

Pay & Entitlements

Military COLA Calculator

2026

Stateside (CONUS) lookup and overseas (OCONUS) rules in one place — 2026 indexes, taxable vs non-taxable, and how each one is computed.

CONUS COLA · 2026 eligible MHAs

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stateside high-cost areas · taxable

Top CONUS index

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OCONUS COLA

non-taxable

spendable income × (index − 100)% · currency-adjusted up to twice a month

How OCONUS COLA is computed (FMR Vol 7A Ch 68, Tables 68-8 and 68-9)

1
Annual compensation
Start from your annual compensation as defined for COLA (Table 68-8, step 1).
2
Spendable income
Find where that compensation range meets your number of command-sponsored dependents on the annual spendable income table. That figure is your average annual spendable income — the part of pay DoD expects you to spend on the local economy (step 2).
3
COLA index
Look up the index for your permanent duty station (step 3). DTMO publishes it in the Overseas COLA Rate Lookup and the monthly index tables.
4
Index to percentage
Subtract 100 from the index and divide by 100: an index of 120 becomes 20% (step 4).
5
Annual, daily, monthly
Spendable income × that percentage = annual COLA (step 5). Divide by 360 for the daily rate, carried to five decimals (Table 68-9); a 30-day month pays 30 × the daily rate.

Where the dollar figure comes from. The spendable income table the formula needs is applied inside DTMO's official lookup — we do not reproduce it here, so for your exact daily and monthly amount use the lookup with your location, grade, years of service and number of dependents.

Open the DTMO Overseas COLA Rate Lookup

Monthly index tables (every OCONUS area with an authorized COLA, back to 2011) are on the DTMO Overseas COLA Tables page.

What moves your OCONUS COLA (FMR ¶3.1)

Your duty station. The PDS governs the rate (¶3.1.1); a ship's home port, a dependent living away from the PDS on an unaccompanied tour, or an evacuation can change which location applies (¶3.1.2, ¶3.3).
The index. Built from the Living Pattern Survey and Retail Price Schedule that DTMO runs overseas (¶3.1.4). Data-driven increases take effect the next pay period; under the FY2024 NDAA a data-driven decrease is capped at 10 index points and phased in at 2 points per month (DTMO, Overseas COLA Tables).
Exchange rates. OUSD(P&R) adjusts OCONUS COLA for currency fluctuations as frequently as twice monthly (¶3.1.5). Only the local-currency share of your spending moves; currency changes are applied in full the next pay period.
Your pay and family size. Spendable income rises with annual compensation and with the number of command-sponsored dependents (Table 68-8, step 2), so the same index pays more to a senior member with a family.
COLA Unique Expenses. A few locations reimburse specific mandatory local expenses dollar-for-dollar, outside the index (¶3.1.6, Table 68-2). Units request them; individuals cannot.

When OCONUS COLA starts and stops (FMR ¶3.2)

Starts the day you report to the new PDS, the effective day of a home-port change, or the day your dependent arrives ahead of you (¶3.2.1). If MALT Plus is payable on the reporting day, COLA starts the day after.
Stops the day before you depart OCONUS on PCS orders, or the day before a home-port change takes effect (¶3.2.2).
Continues during TDY en route on a PCS between nearby PDSs when you keep commuting from the same residence; the old PDS rate is paid through the day before your report date (¶3.2.2.2).
Non-taxable. OCONUS COLA does not appear on your W-2, unlike CONUS COLA.
Arriving overseas? Temporary lodging is TLA, your rent is OHA (country tables at /oha-rates), and the full OCONUS COLA guide covers the rest.

Look up your duty station

Search by base name, city, or state to see if you qualify for CONUS COLA.

2026 CONUS COLA eligible locations

Sorted by COLA index. Click any location to set the chart focus.

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What is CONUS COLA?

Compensates members at high-cost CONUS locations where the cost of living significantly exceeds the national average.

Calculated by applying a COLA index percentage to your "spendable income" — based on rank, YOS, and dependency status.

Higher index = more money. San Francisco at the top end is the highest rate in 2026.

Important details

Taxable: Unlike most military allowances, CONUS COLA IS taxable and appears on your W-2.
Starts on report date: COLA based on a PDS begins the day you report and ends the day before you report to the next PDS (FMR Vol. 7A, Ch. 67, para. 3.1.1.1).
Updated annually: Rates change every Jan 1 based on cost-of-living surveys.
LES line: Look for "COLA" under entitlements on your LES.

Looking for overseas COLA?

OCONUS COLA is a separate, non-taxable allowance for members stationed overseas. Rates are adjusted for currency fluctuations as frequently as twice a month.

Full OCONUS COLA guide

About this entitlement

What you need to know — straight from the regulation

What CONUS COLA is

CONUS Cost-of-Living Allowance (CONUS COLA) is a supplemental payment made to service members assigned to designated high-cost Military Housing Areas (MHAs) within the continental United States. Unlike OCONUS COLA and most military allowances, CONUS COLA is taxable and is reported as wages on the W-2.

CONUS COLA is authorized under 37 U.S.C. § 403b and administered under DoD Financial Management Regulation (FMR), Volume 7A, Chapter 67. Eligible MHAs and rates are published by the Defense Travel Management Office (DTMO) and can be verified on the DTMO CONUS COLA Rate Lookup below.

37 U.S.C. § 403b · DoD FMR Vol. 7A, Chapter 67

How it is computed

CONUS COLA is computed as an index percentage applied to the member's "spendable income" — a portion of pay, published by the Defense Travel Management Office, that varies with grade, years of service, and dependency status. The index percentage for each eligible MHA reflects local costs for goods and services compared to the CONUS average. MHAs whose cost index falls below the trigger threshold lose eligibility.

DoD FMR Vol. 7A, Chapter 67

Tax treatment

CONUS COLA is taxable — it is included on the W-2 and is subject to federal income-tax withholding and, where applicable, state income-tax withholding (DoD FMR Vol. 7A, Table 44-4, Note 12: allowances created after September 9, 1986 are taxable unless specified otherwise). It is not subject to FICA (Social Security/Medicare) withholding — FMR Vol. 7A, Chapter 45, paragraph 2.2 limits military FICA wages to basic pay and a short list of other items that does not include CONUS COLA. This is different from OCONUS COLA, OHA, BAH, BAS, and most other military allowances, which are non-taxable.

DoD FMR Vol. 7A, Ch. 44 (Table 44-4) & Ch. 45, para. 2.2 · IRS Publication 3

OCONUS COLA on the same page

Overseas Cost-of-Living Allowance is a separate, non-taxable allowance under 37 U.S.C. § 405 for members at OCONUS duty stations where living costs exceed the CONUS average. DoD FMR Vol. 7A Chapter 68 sets the computation: annual spendable income (from annual compensation and the number of command-sponsored dependents) multiplied by (COLA index − 100) ÷ 100, divided by 360 for the daily rate (Tables 68-8 and 68-9).

The index is built from DTMO's Living Pattern Survey and Retail Price Schedule and is adjusted for exchange rates as often as twice a month (¶3.1.4–3.1.5). It starts the day you report and stops the day before you depart on PCS orders (¶3.2). The spendable income table is applied inside DTMO's Overseas COLA Rate Lookup, which is the source for the exact dollar amount.

DoD FMR Vol. 7A, Chapter 68 (January 2025), ¶3.1–3.2, ¶3.10, Tables 68-8 & 68-9 · 37 U.S.C. § 405

Source & references

Primary source: DTMO CONUS COLA Rate Lookup (travel.dod.mil) — view official publication
Regulatory reference: DoD FMR Vol. 7A, Chapter 67 · 37 U.S.C. § 403b
Effective date: January 1, 2026
DTMO CONUS COLA rate lookup: https://www.travel.dod.mil/Allowances/CONUS-Cost-of-Living-Allowance/CONUS-COLA-Rate-Lookup/

Military Toolkit is not affiliated with the Department of Defense, DFAS, DTMO, the Department of Veterans Affairs, or any government agency. Rates and rules on this page are pulled directly from the publications cited above. Always verify with your finance office, TMO, or the official rate page before making financial or planning decisions.

FAQ

COLA — frequently asked questions

What is the difference between CONUS COLA and OCONUS COLA?: CONUS COLA (37 U.S.C. § 403b, DoD FMR Vol 7A Ch 67) is a taxable allowance paid in a short list of high-cost stateside Military Housing Areas — 17 MHAs in 2026 — and its index changes once a year on January 1. OCONUS COLA (37 U.S.C. § 405, FMR Vol 7A Ch 68) is a non-taxable allowance paid at overseas duty stations where costs exceed the CONUS average; its index comes from DTMO price surveys and is adjusted for exchange rates as often as twice a month. Both are computed as an index percentage of your spendable income.
How is OCONUS COLA calculated?: Per FMR Vol 7A Ch 68 Tables 68-8 and 68-9: find your annual compensation; read your average annual spendable income from the spendable income table at that compensation range and your number of command-sponsored dependents; take your duty station's COLA index, subtract 100 and divide by 100 (an index of 120 = 20%); multiply spendable income by that percentage for the annual COLA; divide by 360 for the daily rate, carried to five decimals. A 30-day month pays 30 times the daily rate. DTMO's Overseas COLA Rate Lookup applies the spendable income table for you.
Is COLA taxable?: CONUS COLA is taxable — it is included on your W-2 and subject to federal (and, where applicable, state) income-tax withholding, though not FICA (FMR Vol 7A Table 44-4 Note 12; Ch 45 ¶2.2). OCONUS COLA is non-taxable and does not appear on your W-2.
When does OCONUS COLA start and stop?: It starts the day you report to the new overseas duty station, the effective day of a home-port change, or the day your dependent arrives ahead of you; if MALT Plus is payable on the reporting day, COLA starts the next day (FMR Vol 7A Ch 68 ¶3.2.1). It stops the day before you depart OCONUS on PCS orders or the day before a home-port change takes effect (¶3.2.2), with narrow exceptions such as TDY en route between nearby duty stations.
Why did my OCONUS COLA go down this month?: Two things move it: exchange rates, which OUSD(P&R) reviews and applies as often as twice a month and always in full the next pay period, and the survey-based index. Under the FY2024 NDAA a data-driven index decrease is capped at 10 points and phased in at 2 points per month, while increases take effect the next pay period (DTMO, Overseas COLA Tables). Check the monthly index table for your location on DTMO's site to see which one changed.

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REF: DoD FMR Vol 7A, Ch 67 · 37 U.S.C. § 403b, effective January 1, 2026

DTMO CONUS COLA Rate Lookup

Results are estimates. Always verify with your finance office.