U.S. military service members anticipate increases to their pay and allowances in 2026, including a 3.8% raise in basic pay and an average 4.2% bump in Basic Allowance for Housing (BAH) rates. Meanwhile,

President Donald Trump signed the annual defense authorization bill into law on December 18, confirming a 3.8% raise in military basic pay starting January 1, 2026. The raise applies across all branches, including active duty, Guard and Reserve, and is intended to help troops keep pace with inflation and rising living costs.

It would be the smallest raise since a 2.7% boost in 2022 and would continue a downward trend from the 5.2% hike in 2024. The 4.5% base pay raise in 2025 was accompanied by a MOAA-supported 10% target increase for junior enlisted members.

Understanding what deductions are coming out of your pay is key to knowing where all your money is going. More importantly, mistakes happen. The quicker you notice an incorrect deduction, the faster and easier you can get it fixed.

We'll say farewell to an aircraft carrier and see a pay raise for service members in Kitsap's military community in 2026.