Enlisted Retirement Pay


Enlisted Retirement Pay

Military personnel can retire after 20 years of active duty service. A military member who retires at 20 years of service receives 50 percent of his/her monthly base pay. For each year served over 20 years, the military member receives an additional 2.5 percent, up to a maximum of 75 percent of their base pay, at 30 years of service.

Military members who entered the service after September 8, 1980, but before August 1, 1986, fall under a slightly different system that pays a little less. Instead of a direct percentage of the base pay they were receiving at the time of retirement, these members receive a percentage of their average base pay during the three years of service when their pay was the highest (which is usually, but not always their last three years of service).

Military retirement pay is subject to federal income tax, but is not subject to social security tax. Whether or not military retirement pay is subject to state income tax varies from state-to-state, according to individual state tax laws.

Monthly military retirement pay is based upon grade (rank) and years of service:

. 20 21 22 23 24 25 26 27 28 29 30+
E-9 2,358 2,476 2,696 2,818 3,058 3,185 3,506 3,640 3,775 3,910 4,045
E-8 2,035 2,137 2,339 2,445 2,612 2,721 2,992 3,107 3,222 3,337 3,452
E-7 1,782 1,872 2,052 2,146 2,304 2,400 2,673 2,776 2,879 2,982 3,085
E-6 1,499 1,574 1,649 1,724 1,799 1,874 1,949 2,023 2,098 2,173 2,248
E-5 1,263 1,326 1,389 1,452 1,515 1,579 1,642 1,705 1,768 1,831 1,894
E-4 1,009 1,059 1,110 1,160 1,211 1,261 1,311 1,362 1,412 1,463 1,513
E-3 846 888 930 972 1,015 1,057 1,099 1,142 1,184 1,226 1,269
E-2 713 749 785 820 856 892 927 963 999 1,034 1,070
E-1 636 668 700 732 764 795 827 859 891 923 955