How Does Drill Pay Work for Guard and Reserve?

Drill pay serves as compensation for individuals serving in the Reserve and National Guard components of the United States military. This income recognizes their commitment to part-time duties, including monthly drills and annual training. It allows them to maintain civilian careers while serving. Understanding drill pay, from its calculation to its taxation, is important for service members.

Understanding Drill Pay Calculation

The amount of drill pay a service member receives is determined by their military rank and total years of service. Each year, the Defense Finance and Accounting Service (DFAS) publishes updated pay charts detailing specific pay rates for Reserve and National Guard personnel based on these factors. These charts reflect annual pay increases, such as the 4.5% raise implemented for most service members in 2025.

A standard drill period is four hours, and a typical drill weekend often comprises four such periods, usually spanning a Saturday and Sunday. Pay is prorated based on individual drill periods, meaning a service member earns a fraction of their monthly active-duty basic pay for each period attended. Specifically, pay for a single drill is calculated as 1/30th of the active-duty basic monthly pay for that rank and years of service.

Different types of duties, such as Annual Training (AT) or active duty for training (ADT), also fall under drill pay. During these longer training events, service members are compensated with prorated basic pay. The duration of these training periods can vary, impacting total compensation.

Receiving Your Drill Pay

After drill periods and training events, service members receive their drill pay through a structured payment process. Payments are typically made monthly, often disbursed twice a month, usually on the first and 15th days. If a payday falls on a weekend or holiday, payment is generally issued on the preceding workday.

Direct deposit is the standard method for receiving drill pay. Service members must ensure their banking information is accurate and up-to-date with DFAS to prevent delays. They can access pay statements, known as Leave and Earnings Statements (LES), through online portals such as MyPay.

MyPay is an automated, secure online system managed by DFAS that allows military personnel to view detailed breakdowns of their earnings, withholdings, and net pay. Checking the LES each pay period is a recommended practice to validate correct pay and identify any discrepancies.

Taxation of Drill Pay

Drill pay is generally considered taxable at the federal level. While certain allowances, such as Basic Allowance for Housing (BAH) and Basic Allowance for Subsistence (BAS), are typically tax-exempt, drill pay itself is not. Standard tax withholdings are applied, including federal income tax, Social Security (FICA), and Medicare taxes.

For 2025, the Social Security tax rate for employees is 6.2%, applying to wages up to $176,100. The Medicare tax rate is 1.45% and applies to all covered wages without a wage limit.

At the end of each calendar year, service members receive a W-2 Wage and Tax Statement from DFAS, reporting total drill pay earnings and taxes withheld. This form is essential for filing federal income tax returns. While federally taxable, state tax treatment varies; some states may fully or partially exempt military pay, including drill pay, from state income tax, while others do not. Service members should consult their specific state’s regulations for guidance.