Active Duty: Requires 20+ years of active service. Pay = multiplier × years × high-3 average base pay.

High-3 (Legacy): 2.5% per year. 20 years = 50%, 30 years = 75%.

BRS: 2.0% per year + TSP matching (up to 5%) while serving. 20 years = 40%.

CSB/REDUX: Elected pre-2018 for $30K bonus at 15 years. 40% at 20 years (vs 50%), restores to full at age 62. COLA is CPI minus 1%.

Guard/Reserve: Points-based. Total points ÷ 360 = equivalent years. Same multiplier formula. Pay begins at age 60.

SBP (Survivor Benefit Plan): Provides up to 55% of your retirement pay to your surviving spouse or dependent children. Costs 6.5% of your selected base amount. Auto-enrolled at retirement unless you and your spouse opt out in writing.

VGLI (Veterans' Group Life Insurance): Converts your SGLI to civilian coverage after separation. Coverage from $10,000 to $400,000. Premiums increase every 5 years with age. No physical exam required if you apply within 240 days of separation.

TRICARE Prime: HMO-style, lowest out-of-pocket. Requires PCM referral. Enrollment fee required for retirees.

TRICARE Select: PPO-style, more provider choice. No enrollment fee but has deductibles and cost shares.

TRICARE Retired Reserve (TRR): For Guard/Reserve "gray area" retirees (under 60). Premium-based.

TRICARE for Life: Supplement to Medicare at age 65. Wraps around Medicare Parts A & B.

View full TRICARE costs at tricare.mil →

VA disability compensation is tax-free at both federal and state levels. Rates depend on your combined disability rating and number of dependents (spouse, children, parents).

Ratings of 30% and above qualify for additional dependent payments. If you have both retirement pay and VA disability, you may be eligible for Concurrent Retirement and Disability Pay (CRDP) at 50%+ VA rating.

Rates are updated annually with COLA. VetLedger uses the official 2026 VA rate tables (2.8% COLA, effective Dec 1, 2025).

Military retirement pay is taxable as federal income in most cases. However, most states now fully exempt military retirement pay from state income tax.

States with no income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming.

States that still tax military retirement: California, Montana, Vermont, Virginia, Washington DC (partially: Delaware, Georgia).

VA disability pay is always 100% tax-free — federal and all states.

Step 1 — SERVICE tab: Select your component (Active Duty or Guard/Reserve), branch, rank, time in service, and retirement system.

Step 2 — PERSONAL tab: Enter your marital status, dependents, VA disability rating, zip codes for tax comparison, and any expected additional income.

Step 3 — RESULTS tab: View your retirement pay summary, state tax comparison, 10-year projection, and scenario comparison.

Step 4 — HEALTH tab: Select your TRICARE plan to see estimated costs, calculate SBP and VGLI premiums, and view your total compensation package.