Combat Zone Tax Exclusion (CZTE)

Enlisted members and warrant officers exclude all pay earned in a designated combat zone from federal income tax. Officers exclude up to the highest enlisted rate of pay plus any Hostile Fire/Imminent Danger Pay for each qualifying month.

• Members serving in a Presidentially designated combat zone or a Direct Support Area (as designated by DoD/IRS).

1. 1Automatic on qualifying orders; DFAS handles W-2 coding.
2. 2Verify on your LES and W-2.