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Military Retirement Pay Calculator

Estimate your monthly and lifetime military retirement pay under High-3 (Legacy) or BRS (Blended Retirement System). Includes SBP, CRDP, CRSC, and tax guidance.

Your Service Details

Members who entered service before Jan 1, 2018 and did not opt into BRS.

Used for lifetime estimate (assumes life expectancy of 78).

Include SBP (Survivor Benefit Plan)

Retirement Pay Estimate

Calculation Breakdown

Current Base Pay (E-7 at 20 YOS)$5,554.00/mo
High-3 Average (36-month avg)$5,448.00/mo
Multiplier (2.5% x 20 years = 50.0%)50.0%
Monthly Retirement Pay
$2,724
Annual Retirement Pay
$32,688
Lifetime Estimate
$1,176,768
~36 years in retirement

Formula: 2.5% x Years of Service x High-3 Average Base Pay. At 20 years this equals 50% of your High-3 average.

CRDP & CRSC

Concurrent Retirement & Disability Pay (CRDP)

Normally, VA disability pay offsets military retired pay dollar-for-dollar. CRDP eliminates this offset for retirees with a combined VA disability rating of 50% or higher, allowing you to receive both full retired pay and full VA disability compensation.

Combat-Related Special Compensation (CRSC)

CRSC is a separate, tax-free monthly payment for retirees whose disabilities are directly related to combat or combat-related duties. Unlike CRDP, there is no minimum rating threshold for CRSC (any rating 10%+ may qualify).

Eligibility Requirements:

  • Retired with 20+ years of service, or medically retired with a combat-related disability
  • VA-rated disability must be the result of: direct combat, hazardous military duty, an instrumentality of war, or simulated war conditions
  • Must apply through your branch of service (not the VA)
  • Cannot receive both CRDP and CRSC for the same disabilities — you receive whichever is greater

CRSC is paid as a tax-free benefit, making it potentially more valuable than CRDP depending on your tax bracket.

Tax Implications

Federal Taxes

Unlike BAH and BAS which are tax-free during active duty, military retirement pay is fully subject to federal income tax. It is reported on your 1099-R and taxed as ordinary income. VA disability compensation remains tax-free.

Planning Tip: Consider setting up federal tax withholding through myPay before retirement. Many retirees are surprised by their tax liability in the first year because they were accustomed to tax-free BAH/BAS.

State Tax Exemptions for Military Retirement Pay

Many states offer partial or full exemptions on military retirement income. The following states have no state income tax at all:

AlaskaFloridaNevadaNew HampshireSouth DakotaTennesseeTexasWashingtonWyoming

The following states exempt military retirement pay from state income tax (even though they have a state income tax):

AlabamaArkansasConnecticutHawaiiIllinoisIowaKansasLouisianaMaineMassachusettsMichiganMinnesotaMississippiMissouriNew HampshireNew JerseyNew YorkNorth CarolinaNorth DakotaOhioOregonPennsylvaniaWest VirginiaWisconsin

State tax laws change frequently. Some states listed above may offer partial rather than full exemptions depending on age or income. Always verify current tax rules with your state's Department of Revenue or a qualified tax professional.

Disclaimer: This calculator provides estimates based on 2025 pay tables and general formulas. Actual retirement pay may vary based on promotions, special pay, COLA adjustments, and individual circumstances. This tool is not a substitute for official DFAS retirement pay estimates. Consult a military financial advisor or use the DoD Military Pay Calculator for official figures.