Military Retirement Pay
Calculator 2026
Estimate your military pension under the High-3 (Legacy) or Blended Retirement System. Updated with 2026 pay tables including the 3.8% raise. Free, instant, no signup required.
Calculate Your Retirement Pay
Enter your rank, years of service, and retirement system
Entered before Jan 1, 2018 = High-3. After Jan 1, 2018 = BRS.
Base pay reflects 20+ years of service at this grade (2026 tables with 3.8% raise).
Auto-fills from rank. Click to edit manually.
📈 TSP (Thrift Savings Plan) — BRS Only
2026 COLA is 2.8%. Projects how your pension grows each year in retirement.
COLA-Adjusted Pension Projection
| Year | Your Age | Monthly Pay | Annual Pay | Cumulative Earned |
|---|
Retiring soon? Your pension qualifies as income for a VA home loan — $0 down, no PMI.
Check Your VA Loan Eligibility →How Military Retirement Pay Is Calculated in 2026
Military retirement pay is based on your years of service, your highest 36 months of base pay (the "High-3" average), and the retirement system that applies to you. The 2026 military pay raise of 3.8% means higher retirement checks for everyone retiring this year or in the future, since the High-3 average includes your final years of service at the higher pay rates. Current retirees received a separate 2.8% COLA increase applied to their existing retired pay.
High-3 (Legacy) Retirement System
The High-3 system applies to service members who entered between September 8, 1980 and December 31, 2017 (and did not opt into BRS). The formula: Monthly Retirement Pay = 2.5% × Years of Service × High-3 Average. At 20 years you receive 50% of your High-3 average. Each additional year adds 2.5%, maxing out at 75% at 30 years. The "High-3" is the average of your highest 36 consecutive months of base pay — typically your last three years of service. Only base pay counts; BAH, BAS, and special pays are not included.
Example: An E-7 retiring in 2026 after 24 years with a High-3 average of $6,010/month: 2.5% × 24 = 60%. 60% × $6,010 = $3,606/month ($43,272/year).
Blended Retirement System (BRS)
BRS applies to all service members who entered on or after January 1, 2018, plus those who opted in during the 2018 enrollment window. The pension multiplier is 2.0% per year instead of 2.5%, resulting in 40% at 20 years instead of 50%. However, BRS includes government TSP contributions: an automatic 1% of base pay regardless of your contribution, plus matching up to 4% if you contribute at least 5%. Maximum government contribution: 5% of your base pay. BRS members also receive Continuation Pay at the 12-year mark.
BRS Example: An E-7 under BRS retiring after 20 years with a High-3 average of $6,010: 2.0% × 20 = 40%. 40% × $6,010 = $2,404/month pension. With disciplined 5% TSP contributions and 5% government match over 20 years, TSP could reach $300,000+ — adding ~$1,000/month in sustainable withdrawals.
2026 Retirement Pay by Rank (Quick Reference)
| Rank | 20 Years | 24 Years | 26 Years | 30 Years |
|---|---|---|---|---|
| E-6 (SSG/PO1) | $2,596 | $3,115 | $3,375 | $3,894 |
| E-7 (SFC/CPO) | $3,005 | $3,606 | $3,907 | $4,508 |
| E-8 (MSG/SCPO) | $3,473 | $4,168 | $4,515 | $5,210 |
| E-9 (SGM/MCPO) | $4,219 | $5,063 | $5,485 | $6,329 |
| O-3 (CPT/LT) | $3,691 | $4,429 | $4,798 | $5,536 |
| O-4 (MAJ/LCDR) | $4,294 | $5,153 | $5,583 | $6,442 |
| O-5 (LTC/CDR) | $5,471 | $6,565 | $7,112 | $8,206 |
| O-6 (COL/CAPT) | $6,559 | $7,871 | $8,527 | $9,839 |
High-3 system amounts. BRS = multiply by 0.80. Source: 2026 DFAS Military Pay Tables (3.8% raise applied).
COLA: How Your Pension Grows After Retirement
All military retirement pay receives an annual Cost of Living Adjustment based on the Consumer Price Index (CPI-W). The 2026 COLA is 2.8%. Over decades, COLA compounds significantly — a $3,000/month pension today could exceed $5,000/month after 20 years at historical rates. Unlike most private-sector pensions, military retired pay is inflation-protected for life.
Tax Considerations
Military retirement pay is subject to federal income tax. State treatment varies: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming have no income tax. Over 30 additional states offer partial or full exemptions for military retired pay. If you have a VA disability rating, you may qualify for CRDP (Concurrent Retirement and Disability Pay) or CRSC (Combat-Related Special Compensation) — CRSC is tax-free.
Your Pension Can Help You Buy a Home
Military retirement pay counts as qualifying income for a VA home loan. Combined with VA disability compensation and the VA loan's $0 down payment and no PMI, many retirees use their pension to buy or build their forever home. If you're planning to build, a VA construction loan finances land, construction, and your permanent mortgage in a single closing — with zero down.
Planning Your Retirement Home?
Your pension + VA loan = homeownership with $0 down and no mortgage insurance. Build or buy your forever home.
Find Trusted Builders →Frequently Asked Questions
Under the High-3 system, monthly retirement pay equals 2.5% multiplied by your years of service, multiplied by the average of your highest 36 consecutive months of base pay. At 20 years, that's 50% of your High-3 average. Under BRS, the multiplier is 2.0% per year (40% at 20 years), but includes government TSP matching contributions.
The 2026 COLA increase for military retirees is 2.8%, applied to existing retired pay starting with December 2025 entitlements (typically deposited around January 1, 2026). Active-duty members received a separate 3.8% base pay raise.
An E-7 (SFC/CPO) retiring in 2026 after 20 years under the High-3 system receives approximately $3,005 per month ($36,060/year). At 24 years, that increases to about $3,606/month. Under BRS, the pension is 80% of these amounts, but supplemented by government TSP contributions.
High-3 uses a 2.5% multiplier per year (50% at 20 years) with no TSP matching. BRS uses a 2.0% multiplier (40% at 20 years) but includes government TSP contributions of up to 5% of base pay, plus a one-time Continuation Pay bonus at 12 years. BRS entered service on or after January 1, 2018.
Yes. Military retirement pay is considered stable, reliable income by VA lenders. Combined with VA disability compensation and any other income, it counts fully toward VA loan qualification. Many retirees use their VA loan benefit to purchase or build a home with zero down payment.
Military retirement pay is subject to federal income tax. State tax treatment varies — 9 states have no income tax, and over 30 states offer partial or full exemptions for military retired pay. VA disability compensation is always tax-free. CRSC (Combat-Related Special Compensation) is also tax-free.
You must complete a minimum of 20 years of creditable service to be eligible for a military retirement pension. Medical retirement may be available with fewer years if you're determined to be medically unfit for service with a disability rating of at least 30%.
Under the High-3 system, the maximum multiplier is 75% of your High-3 average, reached at 30 years of service (2.5% × 30 = 75%). For the highest-ranking officers (O-10) at 30+ years, this can exceed $16,000 per month. However, retirement pay is capped by law and cannot exceed 75% of base pay regardless of additional years served.