Question about deployment pay and taxes in the military

So, I'm a rising Junior with plans of enlisting after graduation. I have a question about deployment pay. Is it taxed and if so, how? Does it vary depending on the branch of the military or the country of deployment?

Indeed, the tax situation on military deployment pay can seem complicated at first, but I'll try to break it down for you.

In general, most military pay is subject to tax. However, if you are serving in a designated combat zone, a part of, or potentially all of, your active duty pay might be tax-exempt, depending on your rank and the duration of your stay in the combat zone. The IRS guidelines dictate that only enlisted personnel and warrant officers can exclude their entire active duty pay. Officers have a monthly tax exclusion cap which is adjusted annually, based on the highest enlisted pay plus any hostile fire or imminent danger pay received.

Your tax situation doesn't change based on the branch of military service you're in but it could change depending on your location and the nature of your deployment. For instance, if you are serving in a combat zone or if you are hospitalized as a result of injuries sustained while serving in a combat zone, then some of your income might not be subject to tax.

It's also worth noting that state tax laws vary, so you'll need to check the laws of the state you're a resident in for any specific procedures, deductions, or exemptions that apply to military personnel.

In any case, it's always advisable to speak with a tax professional who's familiar with military tax considerations for a more tailored and comprehensive understanding of your individual situation. It's important to plan ahead and have a good understanding of your financial situation while active in the military.