A practical 2026 officer pay example with housing allowance and taxes.
A 2026 O-3 (Captain in the Army/Air Force/Marines, or Lieutenant in the Navy) with around 6 years of service earns roughly $7,100/month in base pay, plus tax-free BAH and BAS on top. In a high-cost market like San Diego or Northern Virginia, total monthly entitlements can clear $10,000–$11,000 — but a large slice of that is BAH meant to cover expensive rent. Base pay is identical nationwide; only BAH and your state's tax treatment change the real take-home picture.
Here is a side-by-side I built the way I read my own LES — list the entitlements, then separate what is taxable from what is not. O-3 at 6 years of service, with dependents. Base pay is the same in both columns; BAH and state tax are what move the needle.
| Monthly line item | Fort Cavazos, TX (lower-cost) | San Diego, CA (high-cost) |
|---|---|---|
| Base pay (O-3, 6 yrs) | $7,103 | $7,103 |
| BAH with dependents | $1,887 | $3,945 |
| BAS (officer) | $328.48 | $328.48 |
| Gross monthly entitlements | $9,318.48 | $11,376.48 |
| Taxable income (base pay only) | $7,103 | $7,103 |
| Est. federal income tax withheld | ~$820 | ~$820 |
| FICA (Social Security + Medicare, 7.65%) | ~$543 | ~$543 |
| Est. state income tax | $0 (no state income tax) | ~$290 (resident filing) |
| TSP contribution (5% of base) | $355 | $355 |
| SGLI ($500k coverage) | $31 | $31 |
| Est. monthly take-home (net deposit) | ~$7,569 | ~$9,337 |
Read this correctly: the San Diego column is ~$1,750/month higher, and nearly all of that is the $2,058 BAH difference — money that disappears into California rent. After housing, the Texas officer frequently keeps more discretionary cash. Run your exact ZIP in the BAH Calculator before drawing conclusions.
These are planning estimates, not a tax return. Your LES is the authority. Verify exact BAH at the DoD lookup linked below.
No. BAH changes by duty ZIP, dependency status, year, and pay grade. Two O-3s with identical base pay can have housing allowances that differ by $2,000/month.
No. BAS is a flat allowance set by officer/enlisted status, not by duty location. The 2026 officer BAS rate is $328.48/month.
Yes. Because tax-free allowances already lower your taxable income, many junior officers are in a lower bracket now than they expect to be later — which often favors Roth TSP. Model both before deciding.