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Military Tax-Free Income Gross-Up Calculator

Turn nontaxable income into extra buying power.

Monthly nontaxable income

VA disability compensation

Any rating, tax-free.

BAH

Basic Allowance for Housing.

BAS

Basic Allowance for Subsistence.

Combat / hazardous duty pay

Military pension (tax-free state)

Only if you live in a state that exempts it.

Other nontaxable

SSDI, nontaxable child support, etc.

Taxable income (for comparison)

Taxable monthly income

W-2 base, self-employed net, etc. Not grossed up.

Gross-up factor

25% is the agency default. 15% if a lower effective tax bracket is documented.

Borrowing power assumptions

Rate

Term (years)

Other monthly debts

Car, credit card minimums, student loans.

DTI ceiling

P&I share of PITI

Rough share of the housing payment that's principal & interest (rest is taxes, insurance, HOA).

Qualifying income (monthly)

$8,325

Nontaxable (raw)

$6,660/mo

Grossed-up

$8,325/mo

Extra qualifying $

+$1,665/mo

Annualized

$99,900

Max loan with gross-up

$371,145

Max loan without gross-up

$280,448

Extra borrowing power

+$90,698

Estimates only. The 25% gross-up is the standard agency default when the borrower's tax bracket isn't documented. Final qualifying income requires 24 months' continuance and lender review of your VA award letter, LES, and tax returns.

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