Tax-Free Pay Equivalent
See what your tax-free pay is really worth. Tax-free income — VA disability, combat-zone pay, BAH and BAS — goes further than a taxable salary because you keep 100% of it. Enter your monthly tax-free amount and bracket to see the equivalent gross salary.
Frequently asked questions
Why is tax-free pay worth more than a salary?
Because you keep every dollar. A civilian must earn more before taxes to take home the same amount — the equivalent gross salary is your tax-free pay divided by (1 minus your marginal tax rate).
Is VA disability pay taxable?
No. VA disability compensation is completely tax-free at the federal level and in every state, which is why it’s worth more than an equivalent taxable paycheck.