American military forces are about to lose a special tax break. As of 2006, says US European Command, US troops stationed in Turkey no longer will be exempt from paying federal taxes. The Pentagon stations nearly 2,000 troops there, including several hundred airmen at Incirlik Air Base. EUCOM announced the bad news last week. The change comes about because Turkey, as of Dec. 31, won’t anymore be considered a front-line state in support of the war in Iraq. The Pentagon terminated that status. The tax break had been in effect since January 2003.
Pentagon Releases Cost of Living, BAH Rates for 2026
Dec. 30, 2025
The Pentagon will pay cost of living allowances to 127,000 service members in the continental U.S. in 2026, an increase of 66,000 members in 2025. Airmen and Guardians across the U.S. will also receive an average increase of 4.2 percent for their Basic Housing Allowance, compared to the 5.4 percent…

