The Short Answer
No state income tax, so active-duty base pay is not taxed by Texas. Your base pay is set by the federal pay table — identical to every other state for your rank and years of service. What actually changes in Texas is your BAH (averaging $1,500/mo without dependents and $1,900/mo with dependents) and how Texas treats the taxable portion of your pay.
State tax status: ✓ TAX EXEMPT
2026 Worked Example — E-5, 6 Years, With Dependents in Texas
Here is how the math actually lands for a mid-career enlisted member stationed in Texas, built the way I read my own LES. Base pay and BAS are federal; the Texas BAH figure is the state average.
| Monthly line item | Amount | Taxable? |
|---|---|---|
| Base pay (E-5, over 6 yrs) | $3,874 | Yes (federal + state) |
| BAH with dependents (Texas avg) | $1,900 | No — tax-free |
| BAS (enlisted) | $476.95 | No — tax-free |
| Gross monthly entitlements | $6,250.95 | — |
| Taxable income (base pay only) | $3,874 | — |
| Est. Texas state income tax | $0 (no state income tax) | — |
Only the $3,874 of base pay is taxable — the $2,376.95 of BAH + BAS is completely tax-free. Run your exact rank, ZIP, and dependency status in the Military Pay Calculator for a precise estimate.
How Texas Taxes Each Type of Military Pay
Active-Duty Base Pay
No state income tax, so active-duty base pay is not taxed by Texas.
Guard & Reserve Drill Pay
No state income tax; Guard and Reserve drill pay is untaxed.
Military Retirement Pay
No state income tax; military retirement pay is not taxed.
VA Disability Compensation
VA disability compensation is tax-free federally and Texas has no income tax to apply.
SCRA & Residency in Texas
Texas is one of the most common SCRA domiciles of choice for servicemembers because it has no state income tax and strong veteran property-tax exemptions.
This is the single most misunderstood rule in military pay. Your home of record / state of legal residence — not your duty station — generally determines who can tax your military pay. Changing it is a deliberate act, not something that happens automatically when you PCS.
Major Military Installations in Texas
- Joint Base San Antonio (Fort Sam Houston/Lackland/Randolph)
- Fort Cavazos (formerly Hood)
- Fort Bliss
- Naval Air Station Corpus Christi
BAH is set by the Military Housing Area covering your duty ZIP. Verify your exact rate at the official DoD BAH lookup.
Official Sources
FAQ — Military Pay in Texas
Does Texas tax my military base pay?
No state income tax, so active-duty base pay is not taxed by Texas.
Is my BAH taxed in Texas?
No. BAH is federally tax-free and is never counted as income for Texas state income tax, regardless of how Texas treats base pay.
Does Texas tax military retirement pay?
No state income tax; military retirement pay is not taxed.
I'm stationed in Texas but my home of record is elsewhere — who taxes me?
Texas is one of the most common SCRA domiciles of choice for servicemembers because it has no state income tax and strong veteran property-tax exemptions.