2026 BAH Housing & Military Pay Calculator

2026 BAH rates and civilian equivalents.

2026 Basic Allowance for Housing Engine

Scenarios:
Family
Monthly 2026 BAH
$1,221/ mo

E-4 rate in Killeen / Fort Cavazos (Fort Hood), TX.

Annual BAH:$14,652 / yr
Pre-Tax Equivalent:$18,785 / yr
Tax Wedge Lift:+$4,133 / yr

IRC § 134 Break-Even

BAH$14,652
Tax Lift+$4,133
Civilian$18,785

Notice: Models 37 U.S.C. § 403 schedules for planning only; not certified legal or tax advice.

How the Department of Defense Establishes Housing Rates

Understanding the statutory data collection, local housing market sampling, and tax advantages of BAH.

The Basic Allowance for Housing (BAH) is an entitlement authorized by 37 U.S. Code § 403 to provide equitable housing compensation for active duty uniformed service members when government quarters are not provided. Rates are determined by independent commercial housing market data collected annually across more than 300 Military Housing Areas (MHAs) nationwide.

Statutory Tax Advantage Formula

CivilianPreTaxEquivalent = AnnualBAH / (1 - CombinedMarginalTaxRate)

Because BAH is 100% tax-free under Internal Revenue Code § 134, a civilian worker in a 28% combined tax bracket must earn $1.39 in gross taxable salary for every $1.00 of military BAH received.