While the 2025 military pay raise boosts salaries, service members should also be aware of possible tax implications. Military pay is generally subject to federal income tax, but certain allowances like Basic Allowance for Housing (BAH) and Basic Allowance for Subsistence (BAS) remain tax-free. The additional earnings from the 4.5% raise (or 14.5% for junior enlisted) could place some... https://www.federalpensionadvisors.com/post/military-pay-raise-2025