How Much Is Dislocation Allowance & How Is It Calculated?

Dislocation Allowance (DLA) is a financial entitlement for military service members undergoing a Permanent Change of Station (PCS). This allowance supports various costs associated with relocating a household, easing financial burdens not covered by other specific reimbursements.

Understanding Dislocation Allowance

DLA is a financial benefit designed to partially offset miscellaneous, un-reimbursed expenses incurred when a service member relocates their household. It applies during a Permanent Change of Station (PCS), government-ordered moves, or evacuations. DLA covers incidental costs not addressed by other allowances.

Active duty service members moving their household on PCS orders are eligible for DLA. This includes those not assigned to single-type government housing, such as barracks, or those receiving Basic Allowance for Housing (BAH). Service members above pay grade E-5 who choose not to reside in single-type government quarters also qualify. DLA is not granted when a service member is separating from active duty, though exceptions may apply if a PCS occurs immediately before separation. Service members moving to their first duty station without dependents are not eligible.

DLA assists with expenses such as utility deposits, connection and disconnection fees for services, or temporary lodging costs that exceed other allowances like Temporary Lodging Expense (TLE). It can also help cover pet transportation, minor household setup purchases, or replacing food items that could not be transported.

Calculating Your Dislocation Allowance

The amount of DLA a service member receives is standardized and depends on their pay grade, dependent status, and the effective date of their PCS orders. It is a flat rate, not based on actual expenses. DLA rates are established annually, categorized into “With Dependents” and “Without Dependents” rates. Service members with dependents receive a higher DLA amount, and higher pay grades correspond to larger payments.

Official DLA rates are published by the Department of Defense (DoD) Per Diem, Travel and Transportation Allowance Committee (PDTATAC) or the Defense Travel Management Office (DTMO). Service members should consult these official tables for the precise DLA amount applicable to their pay grade and dependent status for the relevant fiscal year.

There are also specific circumstances that may result in different DLA payments. A “partial DLA” is a smaller, one-time payment provided for certain non-PCS events, such as being ordered to occupy or vacate government family-type quarters without a full PCS move. Additionally, a “secondary DLA” may be authorized if PCS orders are changed, canceled, or modified after the service member has already begun their move, helping to cover additional unforeseen costs.

Receiving and Using Dislocation Allowance

DLA is typically disbursed as a lump-sum payment to the service member, usually via direct deposit. It is generally paid after PCS orders are processed, often as part of a travel claim or as an advance.

Service members can often request an advance of their DLA before their move. If approved, they may receive a significant portion, such as 80%, of the estimated payment upfront. The remaining balance is then paid after the move is complete and the final travel claim is filed at the new installation.

DLA helps cover miscellaneous, un-reimbursed costs for setting up a new household, such as security deposits, utility connection fees, or small household purchases. Unlike some other allowances, service members are not required to provide receipts for DLA funds, as it is a fixed allowance for general relocation expenses.

Taxation of Dislocation Allowance

Dislocation Allowance is generally considered a non-taxable allowance for federal income tax purposes. The DLA amount received by a service member is typically not included in their gross income for tax calculation.

While DLA is not taxable income, it can reduce the amount of moving expenses that can be claimed as a deduction. Service members should consult official IRS publications, such as Publication 3, “Armed Forces’ Tax Guide,” for detailed guidance on how DLA may impact their tax situation.

DLA information is typically found on a service member’s W-2 form, reported as non-taxable. For personalized tax advice, consulting a qualified tax professional is advisable.