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COMBAT PAY EXPLAINED: WHAT THE NEW EPIC FURY DESIGNATIONS MEAN FOR YOUR PAYCHECK AND TAXES


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One soldier salutes another in a military vehicle.
A U.S. Army Soldier guides a forklift moving equipment during Operation Epic Fury, March 9, 2026.U.S. Army
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If you or a family member is deployed in support of Operation Epic Fury - the U.S. military's ongoing campaign against Iranian military targets that began February 28, 2026 - understanding your full compensation picture matters. Beyond base pay, service members in designated combat and imminent danger areas are entitled to a range of special pays and allowances that can meaningfully improve their financial position during and after the deployment.

Hostile Fire and Imminent Danger Pay

Service members serving in a high-risk zone are entitled to Hostile Fire or Imminent Danger Pay at $225 per month. You cannot receive both simultaneously, and both are taxable unless you are serving in a designated combat zone or support area.

This pay is automatic based on location - not whether active combat is taking place.

U.S. Sailors handle a phone-and-distance line aboard Arleigh Burke-class guided missile destroyer USS Bainbridge (DDG 96) during a replenishment-at-sea with Henry J. Kaiser-class fleet replenishment oiler USNS Kanawha (T-AO 196) while underway during Operation Epic Fury, Mar. 19, 2026.U.S. Navy
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Career Sea Pay

Sailors and Marines assigned to ships supporting Epic Fury draw Career Sea Pay on top of their other entitlements. Enlisted Career Sea Pay ranges from $60 to $805 per month, depending on pay grade and cumulative years of sea duty.

Sailors who serve 36 consecutive months of sea duty become eligible for an additional Career Sea Pay Premium of up to $200 per month beginning in month 37 - the Navy's recognition that extended time at sea carries its own particular weight. Submariners can receive both Career Sea Pay and Submarine Duty Incentive Pay simultaneously, making nuclear-qualified submarine Sailors among the highest-paid enlisted personnel in the military.

Full details are in DoD Financial Management Regulation Volume 7A, Chapter 18.

Combat Zone Tax Exclusion

Perhaps the most significant financial benefit for deployed personnel is the Combat Zone Tax Exclusion (CZTE). For enlisted members and warrant officers, all military pay earned in a combat zone is excluded from federal income tax.

For commissioned officers, the exclusion is capped at the highest enlisted monthly basic pay plus hostile fire or imminent danger pay. One or more days served in a combat zone during any month counts as a full month - a significant benefit for personnel rotating in and out of theater.

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Family Separation Allowance

Family Separation Allowance helps defray the cost of essentially maintaining two households when a servicemember is away - covering the additional expenses a spouse takes on running the home alone.

Because FSA is an allowance rather than pay, it is not taxable, similar to the Basic Allowance for Housing and Basic Allowance for Subsistence. FSA is payable in addition to any other allowance or per diem, so long as the deployment is 30 days or longer - including deployments aboard ship away from homeport.

When both spouses are on active duty and both are deployed, both may receive FSA, provided they were living together immediately before the separation. FSA is not automatic; servicemembers must complete DD Form 1561 (Statement to Substantiate Payment of Family Separation Allowance) to establish entitlement. The FY2026 National Defense Authorization Act increased FSA from $250 - unchanged since 2002 - to $300 per month. It is a modest figure relative to the sacrifice involved, but it is the first increase in more than two decades.

Hardship Duty Pay

Service members assigned to locations with difficult living conditions may receive Hardship Duty Pay ranging from $50 to $150 per month.

If you are also receiving Hostile Fire or Imminent Danger Pay, the Hardship Duty Pay rate is capped at $100 per month. There are three categories - HDP-Location, HDP-Mission, and HDP-Tempo - and servicemembers supporting EPIC FURY may well be eligible for HDP-Location.

Check with your servicing finance office to confirm eligibility and ensure you are receiving what you have earned.

U.S. Navy Mass Communication Specialist 3rd Class Ian Kinkead, from Boise, Idaho, fills out paperwork for the savings deposit program aboard the aircraft carrier USS Nimitz (CVN 68), Aug. 5, 2017, in the Arabian Gulf.Mass Communication Specialist 2nd Class Holly L. Herline/U.S. Navy
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TSP and Savings Deposit Program

Two programs deserve special attention for long-term financial planning. The Savings Deposit Program is available to service members serving in designated combat zones who are receiving Hostile Fire Pay or Imminent Danger Pay for at least 30 consecutive days.

Additionally, tax-exempt combat pay contributed to the Thrift Savings Plan does not count against standard elective deferral limits - uniformed service members may contribute up to the annual additions limit of $72,000 for 2026.

Check Your Leave and Earnings Statement

Most special pays and allowances begin the day you enter a qualifying status or location, and appear on your LES after your finance office processes them. Verify your CZTE status with your unit finance office and review your LES each month. Errors happen - and in a fast-moving combat deployment, catching them early matters.

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Mickey Addison

Air Force Veteran

Written by

Mickey Addison

Military Affairs Analyst at MyBaseGuide

Mickey Addison is a retired U.S. Air Force colonel and former defense consultant with over 30 years of experience leading operational, engineering, and joint organizations. After military service, h...

CredentialsPMPMSCE
Expertisedefense policyinfrastructure managementpolitical-military affairs

Mickey Addison is a retired U.S. Air Force colonel and former defense consultant with over 30 years of experience leading operational, engineering, and joint organizations. After military service, h...

Credentials

  • PMP
  • MSCE

Expertise

  • defense policy
  • infrastructure management
  • political-military affairs

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