If it’s almost January, it’s almost time for the military’s annual pay raises. On Friday, December 14, the Pentagon announced the new 2019 rates for BAH, the military’s Basic Allowance for Housing, and it’s a 2.5% increase.
This increase is in addition to the previously-announced 2.6% annual pay raise for 2019 included in the 2019 National Defense Authorization Act. COLAs and other increases in January of each year are common across the board – for example, military retirement and VA disability rates also increase with annual COLAs.
As usual, service members only see a change if their rates go up. If housing costs have declined in a particular area, members already receiving BAH are “grandfathered” against a rate decrease.
What is BAH?
Basic Allowance for Housing is an allowance that is intended to cover about 95% of an average service member’s housing costs. Although it is tax-free, it typically counts as income for purposes of calculating both child support and maintenance, including in Colorado. For more information, see our article on Understanding Military Pay in the Military Divorce Guide.
The DOD’s BAH Calculator has been updated with the 2019 rates.
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