$225/month flat per 37 USC § 310. Paid for any calendar month in which the member is exposed to hostile fire (HFP) or serves in a designated imminent-danger area (IDP). Tax-free in CZ months under § 112.

Tiered at $50, $100, or $150 per month based on location, per 37 USC § 305(a). List updated quarterly by OUSD(P&R). HDP-L is taxable — not exempted by § 112 during CZ months.

$300/month effective Dec 18, 2025 per FY26 NDAA, authority 37 USC § 427. Paid when separated from dependents for 30+ continuous days due to military orders. Tax-free per 26 USC § 134.

Should I max TSP while deployed?

Yes — Roth contributions from CZ-excluded pay grow tax-free AND were never taxed going in. You can contribute up to the annual elective deferral limit ($23,000 in 2026) plus the annual addition limit ($69,000) of combat-zone contributions.

Deployment Pay Calculator 2026 — CZTE + HFP + HDP + FSA

The four buckets of deployment pay

Deployment compensation breaks into four mechanically distinct buckets, each with its own statutory authority and tax treatment:

Hostile Fire Pay / Imminent Danger Pay (HFP/IDP) — 37 U.S.C. § 310. A flat $225/month for any calendar month in which the member is exposed to hostile fire (HFP) or serves in a designated imminent-danger area (IDP). You cannot receive both in the same month. Non-taxable in a CZ month per 26 U.S.C. § 112.
Hardship Duty Pay – Location (HDP-L) — 37 U.S.C. § 305(a). Tiered at $50, $100, or $150/month based on the conditions of the duty location. List of qualifying locations is published quarterly by OUSD(P&R) and implemented in DoD FMR Vol 7A Ch 17 Annex. Taxable income — not exempted by § 112.
Hardship Duty Pay – Mission (HDP-M) — Same authority, but pegged to specific missions (counter-narcotic, humanitarian, etc.). Flat $150/month. Taxable.
Family Separation Allowance (FSA) — 37 U.S.C. § 427. $300/month effective Dec 18, 2025 per FY26 NDAA. Paid when a member with dependents is separated from them for 30+ continuous days due to military orders. Non-taxable per 26 U.S.C. § 134.

Combat Zone Tax Exclusion — the biggest tax break in the U.S. Code

Under 26 U.S.C. § 112, all basic pay earned by an enlisted member or warrant officer in a designated combat zone is fully excluded from federal taxable income. Officers face a cap: the excluded amount is the lesser of (a) the officer's actual basic pay or (b) the highest enlisted basic pay PLUS the monthly HFP/IDP.

2026 officer monthly cap: $10,729.20 (E-9 over 40 YOS basic pay) + $225 HFP/IDP = $10,954.20/month. Below this cap, an officer's basic pay is fully tax-free. Above it, only the cap portion is excluded; the excess is taxable as normal.

Partial-month rule: Any portion of a calendar month spent in the combat zone qualifies the entire month for CZTE. A deployment that starts Aug 28 and ends Mar 3 covers 8 calendar months (Aug, Sep, Oct, Nov, Dec, Jan, Feb, Mar) of CZTE eligibility.

FICA still applies: CZTE excludes from federal income tax only. Social Security (6.2%) and Medicare (1.45%) are still withheld during deployment.

Bonuses earned in a CZ month: Re-enlistment bonuses received during a CZ month are also fully excluded from federal income tax. Reenlist while deployed if you can — the bonus is tax-free.

Currently designated combat zones (verify before relying)

The list of CZ areas evolves. As of the most recent IRS Pub 3 publication, the currently designated areas include:

Afghanistan area (Executive Order 13239) and supporting Direct Support locations
Persian Gulf area (EO 12744) — Iraq, Kuwait, Saudi Arabia, Bahrain, Qatar, UAE, Oman, Persian Gulf, Red Sea, Gulf of Aden, Gulf of Oman
Federal Republic of Yugoslavia / Albania / Adriatic Sea (EO 13119) — Kosovo Operations
Sinai Peninsula — designated as a CZTE area by Public Law 115-97 (Tax Cuts and Jobs Act 2017)

Direct-support locations (countries near a CZ that materially support combat operations) can also qualify; your service awards the designation on a per-deployment basis via your DD-214 / LES entries. Always verify your specific operation is on the current list at irs.gov (search "Pub 3").

Pre-deployment financial moves to maximize the benefit

Max TSP contributions during the deployment. Roth contributions made from CZ-excluded pay grow tax-free AND were never taxed going in — a rare double-exclusion. You can contribute up to the IRS annual limit ($23,000 in 2026) PLUS the annual addition limit ($69,000 in 2026) of combat-zone contributions.
Update your federal tax withholding on DD Form 2866. Because basic pay is non-taxable in a CZ month, DFAS automatically stops federal withholding on excluded pay. Verify on your first deployed LES.
Use the Savings Deposit Program (SDP). 10% guaranteed return on up to $10,000 of deployed savings, authority 10 U.S.C. § 1035. Contributions accepted after 30 days in a CZ; interest accrues to 90 days after redeployment.
Time your re-enlistment. A reenlistment bonus received in a CZ month is also CZTE-excluded. If your window allows, sign the contract while deployed.
Set up FSA on DA Form 5960 / Page 13 before departure. FSA pays from day 31 of separation; missing the paperwork delays $300/month.
Update your SGLI beneficiary and DD Form 93. Pre-deployment is the right time to verify both — the Casualty Assistance Officer reads them in this order if needed.

SCRA + CZ tax filing extensions

While deployed in a CZ, your federal tax filing deadline is automatically extended by 180 days plus the number of days you were in the CZ during the filing window. Authority: 26 U.S.C. § 7508. Spouse benefits from the same extension. State filing extensions vary — check with your state revenue department.

You can also invoke SCRA § 207 (50 U.S.C. § 3937) for the 6% interest rate cap on pre-service debts while serving on Title 10 active duty. See the SCRA Calculatorfor the math.

Deployment pay — frequently asked questions

What is Combat Zone Tax Exclusion (CZTE)?

Under 26 U.S.C. § 112, all basic pay earned by an enlisted member or warrant officer in a designated combat zone is excluded from federal taxable income. Officers face a cap: the exclusion is limited to the highest enlisted basic pay (E-9 over 40 YOS, $10,729.20/mo in 2026) plus the monthly HFP/IDP ($225), for an officer cap of $10,954.20/month in 2026. Below this cap, officer basic pay is fully tax-free.

How much is Hostile Fire / Imminent Danger Pay (HFP/IDP)?

$225/month flat, authorized by 37 U.S.C. § 310. HFP is paid for any calendar month in which the member is officially designated as exposed to hostile fire. IDP is paid for service in a designated imminent-danger area. You cannot receive both in the same month — only one or the other. Non-taxable in a CZ month under 26 USC § 112.

How much is Hardship Duty Pay – Location (HDP-L)?

Tiered at $50, $100, or $150 per month based on the qualifying location, authority 37 U.S.C. § 305(a). The list of qualifying locations and their tier assignments is updated quarterly by OUSD(P&R) and implemented in DoD FMR Vol 7A Ch 17 Annex. HDP-L is fully taxable — it is not exempted by 26 USC § 112 even during a CZ month.

How much is Family Separation Allowance (FSA)?

$300/month effective Dec 18, 2025 per the FY26 NDAA, authority 37 U.S.C. § 427. Paid when a member with dependents is separated from them for 30 or more continuous days due to military orders. FSA is non-taxable per 26 U.S.C. § 134. You must complete the DA Form 5960 (Army) / equivalent and submit it through your S-1/finance to start payment.

Does the partial-month rule apply to deployment pay?

Yes — for CZTE specifically, ANY portion of a calendar month spent in the combat zone qualifies the entire month for the exclusion. A deployment from Aug 28 to Mar 3 covers 8 calendar months of CZTE eligibility. Other special pays (HFP, FSA) generally accrue daily but pay monthly; check your specific service rules for partial-month pro-ration.

Should I max my TSP while deployed?

Yes — almost always. Roth TSP contributions made from CZ-excluded pay are a rare double-exclusion: never taxed going in, and never taxed coming out. You can contribute up to the IRS elective deferral limit ($23,000 in 2026) PLUS the annual addition limit ($69,000 in 2026) of combat-zone contributions. Most deployed members should aim for the highest possible Roth percentage while in CZ.

Are bonuses received during a CZ deployment tax-free?

Yes — re-enlistment bonuses, retention bonuses, and certain special bonuses received during a CZ month are also CZTE-excluded under 26 USC § 112. If your re-enlistment window allows flexibility, sign the contract while deployed to capture the tax exclusion. Bonus payment timing matters more than the underlying obligation date for CZTE purposes.

Does FICA apply during CZ deployment?

Yes. CZTE excludes from federal INCOME tax only. Social Security (6.2%) and Medicare (1.45%) — FICA — are still withheld on all pay including CZ basic pay. State income tax varies by state of legal residence.

Deployment Pay Calculator