Military Deployment Benefits: Pay, Entitlements & Family Support

A military deployment often includes extensive work, personal sacrifice and uncertainty — but it can also unlock significant financial opportunities for service members, spouses and loved ones. Whether you’re preparing to deploy or already on mission, understanding what you’re entitled to can help you make better decisions for yourself and your family.

This guide explores financial entitlements, allowances, savings programs, and support services available to deployed military members. We’ll walk you through supplementary pay, bonuses, tax advantages, savings tools and family benefits — so you don’t miss a single opportunity.

Tax-Free Pay: 2025 Combat Zone Tax Exclusion (CZTE)

If you serve in a designated combat zone, your base pay, bonus pay, and certain allowances are exempt from federal income tax for that entire month — even if you only spend one day in zone.

• Enlisted personnel and warrant officers exclude 100% of qualifying pay
• Commissioned officers are capped at the highest enlisted rate + $225/month
• Basic Allowance for Housing (BAH) and Basic Allowance for Subsistence (BAS) remain untouched by federal taxes during deployment

The tax break is automatic, but you should verify CZTE status with your finance office and double-check your Leave and Earnings Statements (LES) for the correct withholdings. For a more thorough breakdown of combat zone entitlements, consult the Defense Finance and Accounting Service pay table.

How Much Is My Deployment Pay in 2025?

In 2025, deployment benefits include more than tax exemptions. Special pay and bonuses are also available, and they vary depending on your location, orders, and family status. Deployment pay typically includes:

• Base pay (same as stateside)
• Hostile Fire or Imminent Danger Pay: $225/month if serving in a high-risk zone. This allowance applies if you're serving in a designated hostile area. It’s automatic based on location — not whether you’re literally under fire.
• Hardship Duty Pay: Up to $150/month for difficult living conditions. This ranges from $50 to $150/month depending on the assignment. If you’re receiving both Hostile Fire Pay and Hardship Duty Pay, the Hardship rate may be capped at $100/month.
• Family Separation Allowance (FSA): $250/month if away from dependents for more than 30 days. To apply, submit DD Form 1561 through your administrative section.

In addition to these bonuses, BAH and BAS may continue during deployment or be replaced with in-kind meals and lodging. Generally, BAH continues if you maintain a residence or have dependents while deployed. BAS may also remain in effect — unless you’re provided government-funded meals at your deployment site.

These benefits vary by deployment location and orders but can help offset everyday living expenses while increasing your savings potential. It’s important to always check your specific orders to confirm how these allowances and benefits are handled.

When Does Deployment Pay Start?

Most special pay and allowances begin the day you enter a qualifying status or location — such as a combat zone, imminent danger area or hardship duty post. These payments appear on your LES after your finance office processes them.

Be sure to check for:

• CZTE tax-exempt income lines
• Start dates for Hostile Fire/Imminent Danger Pay and Hardship Duty Pay
• Proper FSA activation (after 30 days)
• Any discrepancies in BAH/BAS continuation

Once your pay and allowances are in place, it’s worth looking at how to put that additional income to work, especially when it comes to long-term planning.

Tax-Exempt TSP and IRA Contributions

Combat zone deployment benefits can affect your retirement savings. When you contribute pay earned in a CZTE-eligible area to your Thrift Savings Plan (TSP):

• That money is deposited tax-free into your Roth TSP
• It grows tax-free and can be withdrawn tax-free in retirement
• It does not count against taxable income or standard IRS deduction limits

This unique opportunity allows you to invest more into retirement savings while reducing your long-term tax burden.

The annual elective deferral limit for the TSP is $23,500 (as of 2025). But during a deployment:

• You may contribute up to the annual additions limit of $69,000 when using tax-exempt pay from a combat zone
• This includes base pay, special pay, bonuses and incentives
• Automatic spillover rules allow contributions beyond the regular cap (if eligible)

For more details, visit tsp.gov to explore contribution limits and more.

Military Savings Deposit Program (SDP)

If you're earning extra pay and living with fewer expenses during deployment, it’s a good time to think strategically about where that money goes. One option that’s available to deployed service members — but is often underused — is the military Savings Deposit Program (SDP).

The SDP is a powerful benefit available exclusively to deployed service members. It offers a secure, high-interest way to grow your savings while serving in a combat zone.

To participate, you must:

• Be deployed to a designated combat zone
• Receive Hostile Fire Pay for at least 30 consecutive days

Once eligible, you can:

• Contribute up to $10,000 total during your deployment
• Earn 10% annual interest, compounded quarterly
• Continue earning interest for up to 90 days post-deployment

You can initiate SDP allotments through myPay or by coordinating with your finance office. Funds, including accrued interest, are released once your deployment ends and your account balance clears.

Is the Military Savings Deposit Program Worth It?

In short: Yes. You likely won’t find a guaranteed 10% return anywhere else — especially on cash. If your expenses are low while deployed and you have room to save, the SDP is an excellent short-term option.

Understanding the SCRA (Servicemembers Civil Relief Act)

Saving money while deployed is a smart move — but protecting what you’ve already earned is just as important. That’s where the Servicemembers Civil Relief Act (SCRA) comes in.

The SCRA protects service members from legal and financial issues while deployed.

• Caps interest rates at 6% for eligible debts incurred before entering active duty
• Shields against eviction, foreclosure, or vehicle repossession
• Allows early termination of housing and auto leases without penalty
• Delays civil proceedings, such as lawsuits, divorce hearings and default judgments

If you or your family need help understanding or enforcing these rights, contact your local Judge Advocate General (JAG) office or search here.

2025 Military Spouse Benefits During Deployment

While the SCRA provides legal and financial protections, military deployment also activates a wide range of spouse and family-focused benefits that can help reduce stress and improve stability while you’re away.

Financial Relief: Housing, Meals, and Leave

Most deployed service members receive room and board, including meals and lodging, provided by their command. These benefits are non-taxable and may reduce or temporarily replace BAH and BAS. With fewer day-to-day expenses, that income can be redirected into an SDP or TSP account.

If your deployment lasts 12 months or more, you may also qualify for Rest and Recuperation (R&R) Leave which includes up to 15 days of paid leave and government-funded travel to an approved location.

Ongoing Health and Dental Benefits

Your family’s health care coverage remains active through deployment and includes:

• Tricare Standard, Remote or Overseas options, depending on your family's location
• Dental Care: Tricare Dental Program for eligible family members and Active Duty Dental Program for deployed service members

Child Care Assistance and Support

Finding reliable, affordable child care can be challenging — especially during military deployment. Resources like MilitaryChildCare.com and Military Child Care in Your Neighborhood, which offer fee assistance, can help cover the cost difference for off-base child care providers.

Education and Career Support for Spouses During Military Deployment

If your spouse is looking to advance their career while you’re deployed, they may be eligible for MyCAA scholarships, which include up to $4,000 in tuition assistance and covers licenses, certifications or associate degrees for eligible spouses.

Support for Exceptional Family Members

For families navigating complex health or educational needs, two key programs offer added support during military deployment:

• Exceptional Family Member Program (EFMP): Coordinates care across duty stations
• TRICARE Extended Care Health Option (ECHO): Covers supplemental services such as in-home therapies, respite care, and medical equipment not included in standard TRICARE coverage

Emotional Health and Counseling Resources

Separation during deployment can be difficult for service members and their loved ones. The military provides private counseling and wellness services, including 24/7 access to trained consultants and no-cost, confidential help via Military & Family Life Counseling.

Reach Out to a Financial Advisor to Make the Most of Your Military Deployment Benefits

Deployment opens the door to a range of powerful financial tools — but it’s up to you to use them well. A First Command Financial Advisor can help you:

• Explore tax-free savings options
• Automate SDP and TSP contributions
• Protect your family’s finances during your absence
• Create a reintegration budget for when you return

With the right plan in place, your deployment can do more than support a mission — it can help stabilize and strengthen your family’s financial future.

TSP funds have very low administrative and investment expenses, and low expenses can have a positive effect on the rate of return of your investment.

Prior to requesting a rollover from your Thrift Savings Plan (TSP) account to an Individual Retirement Account (IRA), you should consider whether the rollover is suitable for you. There may be important differences in features, costs, services, withdrawal options and other important aspects between your TSP account and IRA.

First Command and its affiliates do not provide legal or tax advice. This material is for informational purposes only and should not be relied on for legal or tax advice. You should consult your own legal or tax advisors before engaging in any transaction.