Military Retirement Calculator 2026
Estimate your military pension under Legacy High-3, Blended Retirement System (BRS), or REDUX. Includes VA disability compensation, state tax exemptions, and lifetime value.
Quick Answer
An E-7 retiring with 20 years of service under the Legacy system receives $1,894/month in gross retirement pay (50% × $3,787 base pay). After federal taxes (~$260/month) in a state with military exemption, take-home is approximately $1,634/month. With a 30% VA disability rating, total monthly income rises to $2,171/month — the VA portion ($537) completely tax-free.
Military Service Details
Military Retirement Estimate
Monthly Retirement Pay
$1,894
gross (50.0% × base pay)
Net After Tax
$1,838/mo
Combined w/ VA
$1,838/mo
Lifetime Retirement Value
Retiring at 42 with 20 years of service, you'll receive approximately $977,046 in gross retirement pay over your lifetime (to age 85). At 50.0% of your base pay, this is one of the most valuable benefits in any career.
2026 military pay scales. Estimates for planning purposes only. Actual retirement pay determined by DFAS. State military retirement exemptions vary — verify with your state revenue department.
Military Retirement Pay at 20 Years — By Pay Grade
Legacy High-3 system. 50% multiplier at 20 years. 2026 base pay rates.
| Pay Grade | Monthly Base Pay | Retirement (50%) | Annual Retirement |
|---|---|---|---|
| E-7 (SFC/GySgt/CPO) | $3,787 | $1,894 | $22,722 |
| E-8 (MSG/1stSgt/SCPO) | $4,432 | $2,216 | $26,592 |
| E-9 (SGM/MCPO) | $5,380 | $2,690 | $32,280 |
| O-3 (Captain/Lieutenant) | $4,640 | $2,320 | $27,840 |
| O-4 (Major/Lt Commander) | $5,273 | $2,637 | $31,641 |
| O-5 (Lt Colonel/Commander) | $6,112 | $3,056 | $36,672 |
| O-6 (Colonel/Captain) | $7,332 | $3,666 | $43,992 |
2026 military pay tables. Actual base pay depends on years of service at grade. Source: DFAS 2026 pay tables.
Frequently Asked Questions
How is military retirement pay calculated?
Military retirement pay depends on your system: (1) Legacy/High-3: 2.5% × years of service × average of highest 36 months of base pay. At 20 years: 50% of high-3 base pay. At 30 years: 75% (maximum). (2) Blended Retirement System (BRS): 2.0% × years × high-3. At 20 years: 40%. (3) REDUX: 40% at 20 years with 3.5%/year for years 21–30, but a $30,000 career status bonus at 15 years. Legacy pays more for long careers; BRS includes TSP matching during service.
What is the Blended Retirement System (BRS)?
BRS became mandatory for service members who joined after January 1, 2018. It reduces the retirement multiplier from 2.5% to 2.0% per year (so 40% at 20 years vs 50% under Legacy), but adds: (1) DoD contributes 1% of base pay to TSP automatically, (2) DoD matches up to 4% of your TSP contributions, (3) A mid-career Continuation Pay bonus at 12 years. For service members who don't make it to 20 years, BRS provides retirement savings via TSP. For 20+ year veterans, Legacy pays significantly more.
How much do military retirees actually receive after taxes?
Military retirement pay is taxable as ordinary income at the federal level. However, many states exempt military retirement pay entirely: Alabama, Arkansas, Florida, Hawaii, Illinois, Kansas, Louisiana, Massachusetts, Michigan, Mississippi, Missouri, Nevada, New Hampshire, New Jersey, New York, North Carolina, Oklahoma, Pennsylvania, South Carolina, South Dakota, Texas, Washington, Wisconsin, and Wyoming all offer full or partial exemptions. An E-7 retiring after 20 years gets approximately $1,894/month gross ($22,722/year); after 22% federal effective rate, roughly $1,480/month net in a non-exempt state.
Can I collect both military retirement and VA disability?
Yes — through Combat-Related Special Compensation (CRSC) or Concurrent Retirement and Disability Pay (CRDP). Previously, VA disability was offset against retirement pay dollar-for-dollar. CRDP (for veterans with 50%+ VA rating and 20+ year retirement) eliminates this offset for most veterans — you receive full retirement pay AND full VA compensation. CRSC applies to combat-related disabilities. VA disability compensation is entirely tax-free at both federal and state levels.
What is the REDUX retirement system?
REDUX was available to service members at their 15-year mark as an opt-in choice, offering a $30,000 Career Status Bonus (taxable lump sum) in exchange for a reduced pension. REDUX provides 40% of base pay at 20 years (same as BRS) plus 3.5%/year for 21–30 years, but with a reduced COLA (1% less than CPI annually, restored to full at age 62). Most financial analysts advise against REDUX unless the $30,000 is invested aggressively — the lifetime pension reduction typically exceeds the bonus value.
At what age can you retire from the military?
The minimum retirement age for most military members is 20 years of service — which often means retiring in your late 30s or early 40s (if you enlisted at 18). For the Reserve/Guard (non-Active retirement), benefits begin at age 60 (reduced to 57 with qualifying service). Under the new early retirement provisions, some active duty members with 15–19 years may qualify for an early-out with reduced benefits. Medical retirement can occur at any service length if a disability makes continued service impossible.