Military Leave Sell-Back Calculator

What selling unused leave really pays: basic pay ÷ 30 per day, no BAH/BAS, 22% federal withholding and no FICA, 60-day career cap.

By Konstantin Iakovlev · Updated September 2026 · Source: DFAS Pay Tables

Gross Payment

$4,759.50

Estimated Net

$3,712.41

Per Day

$158.65

Breakdown

Basic pay ÷ 30 × days sold$4,759.50
Federal withholding (22%)-$1,047.09
Social Security and Medicare$0.00
Net payment$3,712.41

Sold leave is not subject to Social Security or Medicare: for service members those taxes apply to basic pay only (26 U.S.C. 3121(i)(2)), and a leave payment under 37 U.S.C. §501 is not basic pay. Federal tax is withheld at 22%; state income tax, if your state taxes military pay, is not included.

Sold days pay basic pay only — taking the same days as terminal leave also pays BAH/BAS, which usually makes terminal leave worth more per day.

Use the Military Leave Sell-Back Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

How It Works

Selling back unused leave converts each day into 1/30 of your monthly basic pay — and only basic pay. No BAH, no BAS, no special pays: 37 U.S.C. §501 prices a sold leave day at the bare table rate for your grade and years, which this page reads from the 2026 DFAS chart. The career cap is 60 sold days, total, across all enlistments.

For income tax the payment is supplemental wages: 22% federal is withheld by default, and your state may tax it too. There is no Social Security or Medicare on it. For service members those taxes apply to basic pay only (26 U.S.C. 3121(i)(2); DoD FMR Vol. 7A, ch. 45), and a §501 leave payment is not basic pay even though it is priced from it. Days earned in a month served in a combat zone are also free of federal income tax (officers up to the monthly cap). Enlisted members typically sell at reenlistment; everyone can sell at separation or retirement.

The comparison that matters is sell-back versus terminal leave. A day of terminal leave pays the same basic pay PLUS your allowances — tax-free BAH and BAS — and keeps benefits running while the clock winds down. Day for day, terminal leave is nearly always worth more; sell-back wins only when you cannot take the days at all or need the lump sum.

Example: E-6 at 10 Years Selling 30 Days

  1. 1 A staff sergeant (E-6) with 10 years of service has 30 days of leave banked at reenlistment. The 2026 monthly basic pay is $4,759.50, so each sold day pays $4,759.50 ÷ 30 = $158.65.
  2. 2 Gross payment: 30 × $158.65 = $4,759.50 — exactly one month of basic pay.
  3. 3 Withholding: 22% federal = $1,047.09. No Social Security or Medicare is taken, because sold leave is not basic pay.
  4. 4 Estimated net: $3,712.41 before any state tax. Taken as terminal leave instead, the same 30 days would also carry roughly a month of tax-free BAH and BAS — often $2,000+ more — while their basic pay has the usual 7.65% FICA withheld, so terminal leave still comes out well ahead.

Source: DFAS Pay Tables · Last updated: September 2026

Frequently Asked Questions

How much do I get for selling back leave?
Each day pays 1/30 of your monthly BASIC pay — no BAH, no BAS, no special pays. An E-6 at 10 years ($4,759.50/month in 2026) gets $158.65 per day before taxes.
How many leave days can I sell back?
60 days total over an entire career, across all enlistments and separations. Enlisted members can sell at reenlistment; everyone can sell unused leave at separation or retirement.
Is sold-back leave taxed?
Yes, for income tax: 22% federal is withheld as supplemental wages, and your state may tax it too. It is not subject to Social Security or Medicare, because for service members those taxes apply to basic pay only (26 U.S.C. 3121(i)(2)) and sold leave is paid separately under 37 U.S.C. §501. Leave earned in a month served in a combat zone is also free of federal income tax. An E-6 at 10 years selling 30 days has $1,047.09 withheld from $4,759.50.
Should I sell leave or take terminal leave?
Day for day, terminal leave is nearly always worth more: it pays the same basic pay PLUS tax-free BAH and BAS, and benefits continue while on it. Sell back when you cannot take the days or genuinely need the lump sum at reenlistment.

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