How to Read Your LES (Leave and Earnings Statement)

Your Leave and Earnings Statement is the military equivalent of a civilian pay stub — except it is significantly more complex. Most service members glance at their net pay and move on, never fully understanding where their money is going or what they are actually earning. Whether you are an E-1 trying to understand your first paycheck or a senior NCO preparing for transition, knowing how to read your LES is essential. Here is a complete breakdown of every section.

Entitlements: What You Earn

The entitlements section shows everything the military pays you. This is your gross compensation before any deductions. The major line items include:

• Base Pay: Your primary salary determined by your rank and years of service. This is the only part of your pay that is fully taxable. Base pay rates are set by Congress and typically increase annually. This is the number the military uses for retirement calculations.
• Basic Allowance for Housing (BAH): A tax-free monthly payment to offset housing costs. BAH rates are based on your duty station zip code, rank, and dependency status. If you live in government quarters (barracks or on-post housing), you typically will not receive BAH. This is often the largest tax-free benefit in your compensation package and is a critical number to understand when comparing military pay to civilian salaries.
• Basic Allowance for Subsistence (BAS): A tax-free monthly payment to offset food costs. As of 2026, BAS is approximately $460 per month for enlisted members and $334 for officers. If you eat at the dining facility (DFAC) and have meal deductions, those will offset this amount.
• Special and Incentive Pays: These vary widely depending on your situation. Common ones include hazardous duty pay, flight pay, hostile fire and imminent danger pay, sea pay, jump pay, foreign language proficiency pay, and reenlistment bonuses. Some of these are taxable and some are not — combat zone pay, for example, is entirely tax-free.

Deductions: What Comes Out

The deductions section shows everything being taken from your pay before you receive your net deposit. Understanding these is crucial:

• Federal Income Tax (FITW): Federal tax withheld based on your W-4 elections. Remember, BAH and BAS are not subject to federal income tax, which is a significant advantage of military compensation.
• FICA (Social Security and Medicare): The same payroll taxes that every American worker pays — 6.2 percent for Social Security and 1.45 percent for Medicare. These are withheld only on your taxable pay (base pay and taxable special pays).
• State Income Tax (SITW): State tax withholding based on your state of legal residence, not your duty station. Some states like Texas, Florida, and Nevada have no state income tax, which is why many service members establish residency there.
• SGLI (Servicemembers Group Life Insurance): The maximum coverage of $500,000 costs approximately $25 per month. You can elect lower coverage or decline entirely, but most service members carry the full amount. Spouse and dependent coverage (FSGLI) is a separate deduction.
• TSP (Thrift Savings Plan): Your contributions to the military's retirement savings plan. Under BRS (Blended Retirement System), the DoD matches up to 5 percent of your base pay. If you are not contributing at least 5 percent, you are leaving free money on the table. Your LES will show both traditional (pre-tax) and Roth (after-tax) contributions if you are making both.
• TRICARE Dental and Vision: If you have enrolled in the TRICARE Dental Program or Federal Employees Dental and Vision Insurance Program, those premiums appear here. TRICARE medical for active duty members has no premium — it is included in your service.
• Armed Forces Retirement Home (AFRH): A small deduction of $0.50 per month that supports the Armed Forces Retirement Home.

Allotments

Allotments are voluntary payments you have set up to be automatically deducted from your pay. Common allotments include payments to savings accounts, charitable contributions (like the Combined Federal Campaign), loan payments, or support payments. Your LES will list each allotment and the amount. Review these periodically to make sure you are not paying for something you have forgotten about — it happens more often than you think.

Leave Balance

Your LES tracks your leave (vacation) balance. Active duty members accrue 2.5 days of leave per month, or 30 days per year. Your LES shows your leave balance at the beginning of the fiscal year, leave earned, leave used, and your current balance. You can carry a maximum of 60 days into the next fiscal year (though special provisions sometimes allow up to 120 days). Any leave above 60 days at the end of the fiscal year is lost — use it or lose it. When you separate, you can either take your remaining leave (terminal leave) or sell it back at your base pay rate, up to a maximum of 60 days. Understanding your leave balance is critical for planning your transition timeline.

TSP Contributions and Matching

Your LES includes a dedicated section for your Thrift Savings Plan contributions, showing your year-to-date (YTD) contributions for both traditional and Roth options. If you are under BRS, it also reflects the DoD automatic 1 percent contribution and the matching contributions up to 5 percent. The 2026 TSP contribution limit is $23,500 for regular contributions, with an additional $7,500 catch-up contribution if you are 50 or older. Combat zone contributions can exceed these limits. Monitor your YTD contributions to ensure you are on track to maximize your annual contribution if that is your goal.

Year-to-Date Totals

The YTD section at the bottom of your LES shows cumulative totals for the calendar year: total entitlements, total deductions, total allotments, and net pay. These numbers should align closely with your W-2 at the end of the year. If something looks off, address it with your finance office sooner rather than later — corrections get harder the longer you wait.

Why Your LES Matters for Transition Planning

Understanding your LES is not just about knowing your paycheck — it is foundational for your transition. When you leave the military, you need to replace your total compensation, not just your base pay. Most transitioning service members dramatically underestimate what they need to earn in the civilian world because they only compare base pay to a civilian salary offer. Your LES shows the full picture: base pay plus tax-free BAH plus tax-free BAS plus TRICARE (zero premiums) plus TSP matching plus special pays. Add it all up, account for the tax advantages, and that is the number you need to beat.

Use our Military Pay to Civilian Salary Calculator to convert your total military compensation into a civilian equivalent. And check our TSP Comparison Tool to understand how your TSP stacks up against civilian 401(k) plans.