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Military retirement calculator: High‑3 vs BRS

High-3 and the Blended Retirement System from the same High-36, the BRS lump sum worked out by DoD’s own method, and Guard and Reserve points. Every rule sourced and dated.

High-3 vs BRS calculator

Service

Retired pay for an at years of service.

High-36 estimated from the pay table for this grade and years. Know yours? Enter it under More options.

No one can switch plans now: the BRS opt-in closed December 31, 2018 (10 U.S.C. 1409(b)(4)). Tell us when you joined to see only your plan, or check your LES.

More options your own High-36, extra months, a promotion

The average of your highest 36 months of basic pay. Leave empty to estimate it from the pay table.

0 to 11. Each full month adds 1/12 of a year to the multiplier.

1 to 35. The months before it are figured at the earlier grade.

Your estimate · gross retired pay

Example

High-3 50%

$3,059 a month

$36,708 a year

BRS 40%

$2,447 a month

$29,364 a year

BRS pays $612 a month less ($7,344 a year): 40% instead of 50% of a High-36 of $6,118.50. Before taxes and any deductions; rounded down to the whole dollar, as DFAS does.

Pay table as of · rules verified · Change log
Independent estimate · not an official statement · general information, not financial or investment advice

Each month, drawn to scale
High-3 · 50% of the High-36$3,059BRS · 40% of the High-36$2,447With a 25% lump sum, until age 67 (June 2056)$1,835With a 50% lump sum, until age 67 (June 2056)$1,223$0$3k$1k$2k

Estimate by Rank and Pay · pay table as of January 1, 2026 · not an official statement · rankandpay.com

TSP for this grade

The BRS lump sum: cash now, less each month until age 67

You may take 25% or 50% of the discounted value of your retired pay up to Social Security full retirement age in cash. Monthly pay is then 75% or 50% until that age, and full after it. Here is what each comes to; the choice is yours.

Sets your full retirement age.

Set to 9 months from now — change it to your own month.

25% lump sum

Paid when you retire

$97,039.15

Then each month through June 2056
$1,835 (75% of $2,447)
From July 2056
$2,447 + the COLAs since retiring

What you give up ($2,447 − $1,835) = $612 a month × 348 months = $212,976.00 in today’s dollars, before COLAs (the whole dollars DFAS pays) — for $97,039 now, about 46¢ for each dollar given up.

50% lump sum

Paid when you retire

$194,078.30

Then each month through June 2056
$1,223 (50% of $2,447)
From July 2056
$2,447 + the COLAs since retiring

What you give up ($2,447 − $1,223) = $1,224 a month × 348 months = $425,952.00 in today’s dollars, before COLAs (the whole dollars DFAS pays) — for $194,078 now, about 46¢ for each dollar given up.

DoD BRS calculator method. DFAS computes the amount paid. 348 months of retired pay from July 2027 discounted at the 2027 rate of 6.60% a year, with your monthly pay held level (the rate already removes inflation). Elect at least 90 days before you retire.

Taxes. The lump sum is taxed as wages in the year you receive it; DoD withholds federal income tax from it as supplemental wages (FMR Vol. 7B ch. 25, 3.2). You can take it in one payment or in 2, 3 or 4 yearly installments (FMR Vol. 7B ch. 3, 6.5), which spreads it over more tax years. How much tax that saves depends on your whole return.

Discount rate from DoD’s memo of · verified
Independent estimate · not an official statement · general information, not financial or investment advice

Lump sum in the drawing

Where each number comes from

High-36 (estimated)12 months as E-7 at over 16 ($6,000.90) + 24 months as E-7 at over 18 ($6,177.30), ÷ 36. Estimated with the 2026 pay table; future raises not included.
$6,118.50
Years of serviceWhole years; each extra full month would add 1/12 of a year.
20
High-3: 50%2.5% × 20 years · $3,059.25 before rounding down
$3,059
BRS: 40%2.0% × 20 years · $2,447.40 before rounding down
$2,447

Cost-of-living adjustments

Retired pay rises each December 1 by the rise in consumer prices. The latest is 2.8%, effective . The December 1, 2026 COLA isn’t announced yet (checked ), so the amounts above are in today’s dollars. Social Security announced a 3.6% COLA for its own benefits on October 14, 2026; DoD and DFAS announce the retired-pay percentage.

Empty unless you type one. It’s your assumption, not a forecast; each year is rounded down to the dollar.

VA disability and retired pay. With a VA rating, part of retired pay may be waived for VA compensation unless you qualify for CRDP (rating 50% or more) or CRSC (combat-related). Not computed here — CRDP vs CRSC, explained.

How the math works

Each rule in one line, with the law or regulation it comes from.

  1. High-36The average of your highest 36 months of basic pay. Without your own figure we estimate the last 36 months before retiring from the pay table in force today, at your grade (and an earlier grade before a promotion) — future raises not included.10 U.S.C. 1407, Retired pay base: high-36 · DoD FMR Vol. 7B Ch. 3, Gross Pay Computation
  2. MultiplierHigh-3: 2.5% × years of service. BRS: 2.0% × years. Past 30 years (retiring after 2006): High-3 75% + 2.5% and BRS 60% + 2.0% for each year over 30.10 U.S.C. 1409, Retired pay multiplier
  3. Years and monthsWhole years plus each full month as 1/12 of a year, to 2 decimals; the multiplier is rounded to 0.01 percentage point.10 U.S.C. 1405, Years of service · DoD FMR Vol. 7B Ch. 3, Gross Pay Computation
  4. Retired payHigh-36 × multiplier, rounded down to the whole dollar — and again after each cost-of-living adjustment.10 U.S.C. 1412, Rounding down of retired pay
  5. Guard and ReserveYears = (active-duty days + inactive points, at most 130 inactive points a year since the year that includes October 30, 2007) ÷ 360, carried to 3 decimals and rounded to 2; then the same 2.5% or 2.0% per year.How points add up: reserve retirement points, explained.10 U.S.C. 12733, Reserve retirement years of service · 10 U.S.C. 12739, Reserve retired pay
  6. BRS lump sum25% or 50% of the present value of your retired pay from its first month to the month after Social Security full retirement age, discounted monthly at the lump-sum discount rate for the year retired pay starts (2027: 6.60%; 2026: 6.46%). Monthly pay is 75% or 50% until full retirement age, then full again.This is the method of DoD’s BRS calculator, reproduced to the cent on its own examples. DFAS computes the amount paid.10 U.S.C. 1415, BRS lump-sum election · DoD BRS calculator (lump sum) · BRS Lump Sum Discount Rate for 2027 (memo signed July 7, 2026) (page dated ) · BRS Lump Sum Discount Rate for 2026 (memo signed May 22, 2025) (page dated )
  7. Full retirement age67 for anyone born in 1960 or later; 66 and some months for 1955–1959. Born on the 1st of a month: figured as if born the month before.Full retirement age by year of birth
  8. Cost-of-living adjustmentsEach December 1 retired pay rises by the change in consumer prices, to 0.1%; High-3 and BRS get the full amount.10 U.S.C. 1401a, Retired pay COLA · December 2025 Retiree Newsletter: COLA (page dated )

Not modeled here

  • Final Pay (entered service before September 8, 1980): Not modeled — it uses final basic pay instead of a High-36 and isn’t computed here.

  • REDUX and the Career Status Bonus: Not modeled — the bonus ended December 31, 2017; REDUX isn’t computed.

  • Disability retirement: Not modeled — this calculator covers retirement for years of service only.

  • Guard and Reserve pay before 60: Not modeled — the earlier start for qualifying active service isn’t modeled; pay is shown as it starts at 60.

  • Taxes, Survivor Benefit Plan costs and other deductions: Not modeled — the amounts are gross retired pay.

  • VA compensation and retired pay together (CRDP, CRSC): Not modeled — explained in CRDP vs CRSC, not computed here.

  • Lump sums for later years: Not modeled — the discount rate for retired pay starting after 2027 isn’t published yet (checked October 13, 2026).

State income tax on retired pay, all 50 states and DC

States treat military retired pay very differently: 9 have no income tax on it, 28 exempt it fully, 13 exempt part of it (with caps, ages or conditions) and 1 taxes it. Here is each rule in short, from the state’s own page for the newest tax year it has published. We don’t compute state tax; this is general information, not tax advice, and the state’s revenue agency has the final word.

All 50 states and DC every rule in one table
State income tax on military retired pay, by state
StateTreatmentThe rule, in short
AlabamaFully exempttax year 2025Not taxed, no age/cap.
AlaskaNo individual income tax on this incomeNo individual income tax.
ArizonaFully exempttax year 2025100% subtraction since TY2021; surviving spouse 100%.
ArkansasFully exempttax year 2025Exempt since TY2018 (losing the separate $6,000 exemption if it exceeds $6,000); SBP via Act 141/2017.
CaliforniaPartly exempt (cap, age or conditions)tax year 2025TY2025–2029: up to $20,000 retired pay and up to $20,000 SBP (“each type”); AGI ≤ $125,000 ($250,000 joint/surviving spouse).
ColoradoPartly exempt (cap, age or conditions)since tax year 2022Under 55: $15,000 military subtraction (TY2022–2028); 55–64: $20,000 pension subtraction; 65+: $24,000 (reduced by SS subtraction).
ConnecticutFully exempttax year 2025100%, incl. survivor-benefit beneficiaries (not divorce-decree payees).
DelawarePartly exempt (cap, age or conditions)tax year 2025Under 60: up to $12,500; 60+: $12,500 pension+retirement exclusion (HB 108 to $25,000 NOT enacted).
District of ColumbiaTaxabletax year 2025No military-retirement subtraction ($3,000 exclusion ended TY2015); survivors 62+ may exclude gov’t survivor benefits (SBP not named).
FloridaNo individual income tax on this incomeNo personal income tax.
GeorgiaPartly exempt (cap, age or conditions)tax year 2025Under 62: $17,500 + $17,500 more if GA earned income > $17,500; 62–64 $35,000; 65+ $65,000 (general exclusion); $65,000 under-65 starts TY2027 (HB 266).
HawaiiFully exempttax year 2025Military pension is an exempt government pension.
IdahoPartly exempt (cap, age or conditions)tax year 2025Disabled, 62+, or under 62 with filing-level wages; TY2025 cap $48,216 single / $72,324 joint minus SS/RR; TY2026 cap not published.
IllinoisFully exemptSubtraction (government retirement incl. military), no cap (SBP not mentioned).
IndianaFully exemptsince tax year 2022100% since TY2022, retired pay or survivor’s benefits.
IowaFully exempttax year 2025Excluded any age since TY2014; incl. SBP (10 USC 1447).
KansasFully exempttax year 2025Schedule S A14, no cap (SBP not mentioned).
KentuckyPartly exempt (cap, age or conditions)tax year 2025Up to $31,110 (pooled with all pensions); full if retired before 1/1/1998; pre-1998 service share exempt (HB 192 full exemption died).
LouisianaFully exempttax year 2025Federal retirement exclusion incl. military; SBP excluded.
MaineFully exempttax year 2025Incl. survivor benefits.
MarylandPartly exempt (cap, age or conditions)tax year 2025Up to $12,500 under 55; up to $20,000 at 55+; incl. death benefits (HB0857 not passed).
MassachusettsFully exempttax year 2025Noncontributory uniformed-services pension + survivorship.
MichiganFully exempttax year 2025Exempt; SBP to the extent it is military retirement pay.
MinnesotaFully exemptM1M line 25 subtraction incl. SBP (not with the past-service credit).
MississippiFully exemptAll qualified retirement income exempt.
MissouriFully exempt (SBP via public-pension exemption)tax year 2025100% subtraction since TY2022; SBP not in it (public pension exemption, TY2025 up to $47,633).
MontanaPartly exempt (cap, age or conditions)tax year 2025New residents after 6/30/2023 (or pay starting while resident): lesser of 50% or MT wage/business income; SBP 50%; 5 consecutive years.
NebraskaFully exempttax year 2025100% since TY2022.
NevadaNo individual income tax on this incomeNo individual income tax.
New HampshireNo individual income tax on this incomeNo wage/pension tax; I&D tax repealed from 1/1/2025.
New JerseyFully exemptRetired pay and SBP not taxed.
New MexicoPartly exempt (cap, age or conditions)tax year 2025$30,000 per retiree or surviving spouse (2026 bills to remove cap died).
New YorkFully exempttax year 2025Incl. beneficiaries; also NYC/Yonkers.
North CarolinaPartly exempt (cap, age or conditions) (conditional)tax year 2025Fully deductible with 20+ years or medical retirement; Bailey (5 yrs by 8/12/1989); else taxable; SBP if retiree qualified.
North DakotaFully exemptRetirees and surviving spouses.
OhioFully exemptUniformed-service retirement pay deductible.
OklahomaFully exempttax year 2025100% since TY2022.
OregonPartly exempt (cap, age or conditions) (mostly taxable)tax year 2025Only the share for service before 10/1/1991 subtractable; age-62 low-income credit.
PennsylvaniaFully exempttax year 2025Not taxable.
Rhode IslandFully exempttax year 2025Since TY2023; no age/income test; surviving spouse too.
South CarolinaFully exempttax year 2025All military retirement deductible since TY2022 (Act 110 of 2026 doesn’t change it).
South DakotaNo individual income tax on this incomeNo personal income tax.
TennesseeNo individual income tax on this incomesince tax year 2021No individual income tax (Hall tax repealed TY2021).
TexasNo individual income tax on this incomeNo state income tax.
UtahFully exempt (credit)tax year 2025Military Retirement Credit = flat rate × taxable military retired pay (4.5% TY2025; 4.45% TY2026 by statute); non-refundable; incl. survivors.
VermontPartly exempt (cap, age or conditions)tax year 2025AGI ≤ $125,000 fully exempt; phase-out to $175,000; survivor benefits included (Act 71, from TY2025).
VirginiaPartly exempt (cap, age or conditions)tax year 2025Up to $40,000 per recipient, TY2025 and later; SBP to surviving spouse qualifies.
WashingtonNo individual income tax on this incomeNo individual income tax in 2026; 9.9% tax on AGI > $1M from 2028 (SB 6346), treatment of retired pay not defined.
West VirginiaFully exempttax year 2025All military retirement incl. survivorship annuities.
WisconsinFully exemptAll incl. SBP and RSFPP.
WyomingNo individual income tax on this incomeNo personal income tax.

TY = tax year · SBP = Survivor Benefit Plan · AGI = adjusted gross income. “Tax year 2025” is the year of the state document we read; “since tax year 2022” is the year a rule began, where the state’s page names no newer year. Every row was read on the state’s own site on ; each January brings new instructions.

How we check the numbers

  1. From the agency’s own tables. Pay from DFAS, housing from DoD’s BAH file, VA rates from VA, fitness scores from each service’s current scoring tables — looked up the way the tables read, never interpolated.
  2. Two dates on every answer. The date a rate took effect and the date it was last checked against the agency’s page. A rule that can’t be confirmed says “Not modeled” and why, instead of a guess.
  3. Tested, then logged. The arithmetic runs on one engine with automated tests built from the agencies’ own worked examples; every rate or rule change goes into the public change log with its source.

  • Guide · Retirement

    High-3 vs BRS: military retirement math, side by side

    E-7 at 20: High-3 $3,059 vs BRS $2,447 a month

    High-3 pays 2.5% a year of service, BRS 2.0%: 50% vs 40% of the High-36 at 20 years. An E-7 at 20: $3,059 vs $2,447 a month, and what BRS adds in the TSP.

    Updated · 6 min read

  • Guide · Retirement

    BRS lump sum: 25% or 50% and the 6.60% discount rate for 2027

    E-7 at 20, pay from July 2027: 25% ≈ $97,039.15, 50% ≈ $194,078.30 at 6.60%

    How the BRS lump sum works: 25% or 50% of retired pay to full retirement age, discounted at 6.46% (2026) or 6.60% (2027), with an E-7 worked example.

    Updated · 6 min read

Sources

  1. 10 U.S.C. 1409, Retired pay multiplierCornell LII (U.S. Code) · read
  2. 10 U.S.C. 1407, Retired pay base: high-36Cornell LII (U.S. Code) · read
  3. 10 U.S.C. 1405, Years of serviceCornell LII (U.S. Code) · read
  4. 10 U.S.C. 1412, Rounding down of retired payCornell LII (U.S. Code) · read
  5. 10 U.S.C. 1415, BRS lump-sum electionCornell LII (U.S. Code) · read
  6. 10 U.S.C. 1401a, Retired pay COLACornell LII (U.S. Code) · read
  7. 10 U.S.C. 12733, Reserve retirement years of serviceCornell LII (U.S. Code) · read
  8. 10 U.S.C. 12739, Reserve retired payCornell LII (U.S. Code) · read
  9. DoD FMR Vol. 7B Ch. 3, Gross Pay ComputationOffice of the Under Secretary of Defense (Comptroller) · read
  10. DoD BRS calculator (lump sum)Office of the Secretary of Defense · read
  11. December 2025 Retiree Newsletter: COLADefense Finance and Accounting Service · page dated December 18, 2025 · read
  12. BRS Lump Sum Discount Rate for 2026 (memo signed May 22, 2025)Office of the Assistant Secretary of Defense (M&RA) · page dated May 22, 2025 · read
  13. BRS Lump Sum Discount Rate for 2027 (memo signed July 7, 2026)Office of the Assistant Secretary of War (M&RA) · page dated July 7, 2026 · read
  14. BRS lump-sum discount rate memos 2018–2025Office of the Secretary of Defense · read
  15. Full retirement age by year of birthSocial Security Administration · read
  16. Military RetirementOffice of the Secretary of Defense · read
  17. Cost-of-Living Adjustment (COLA) informationSocial Security Administration · read
  18. Social Security Announces 3.6 Percent Benefit Increase for 2027Social Security Administration · page dated October 14, 2026 · read
  19. Latest Cost-of-Living Adjustment (computation from the CPI-W)Social Security Administration, Office of the Chief Actuary · read
  20. Retired and annuitant pay schedule (2026–2027)Defense Finance and Accounting Service · page dated September 16, 2026 · read
  21. Basic Pay – Enlisted, effective January 1, 2026Defense Finance and Accounting Service · page dated January 12, 2026 · read
  22. Basic Pay – Warrant Officers, effective January 1, 2026Defense Finance and Accounting Service · read
  23. Basic Pay – Commissioned Officers, effective January 1, 2026Defense Finance and Accounting Service · read
  24. Basic Pay – Commissioned Officers with over 4 years enlisted service, effective January 1, 2026Defense Finance and Accounting Service · read
  25. 10 U.S.C. 12732, years of service for reserve retirement (the 50-point year)Legal Information Institute, Cornell Law School · read
  26. DoD FMR Vol. 7B Ch. 25, Federal Income Tax Withholding (3.2, BRS lump sum payments)Office of the Under Secretary of Defense (Comptroller) · read