What is O-3 BAH at Panama City in 2026?

$2,709 per month with dependents ($32,508 per year), effective 01 JAN 2026. Without dependents it is $2,337 per month.

Does BAH count as taxable income?

No. BAH is excluded from federal taxable income, so a given BAH amount is worth more than the same figure in basic pay.

What happens if my BAH rate drops this year?

BAH rate protection holds you at the prior year's amount as long as your duty location, pay grade and dependency status stay the same. The lower rate applies to members arriving on new orders.

O-3 BAH at Panama City 2026 — $2,709 with dependents, $2,337 without

Basic Allowance for Housing by duty station, pay grade and dependency status. Official DoD rates, no login, no email.

Panama City, FL

O-3 · with dependents

$2,709/ month

$32,508 / year

At O-3, this is #144 of 338 stations loaded · high Westchester County $6,633 · low Anniston $1,686

MHA FL063 · ZIPs 32401 32402 32403 32404 32405 32406 +13 more

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Untaxed — matching it with taxable pay takes$3,473 / mo gross

Without dependents here$2,337 / mo

In government quarters, no dependents$50.10 / mo partial

Panama City — full sheetTap a row

Grade	With dep.	Without
Enlisted
E-1	$2,058	$1,713
E-2	$2,058	$1,713
E-3	$2,058	$1,713
E-4	$2,058	$1,713
E-5	$2,163	$1,863
E-6	$2,442	$1,959
E-7	$2,538	$2,058
E-8	$2,643	$2,223
E-9	$2,766	$2,298
Warrant officer
W-1	$2,460	$2,037
W-2	$2,580	$2,220
W-3	$2,712	$2,310
W-4	$2,787	$2,460
W-5	$2,886	$2,562
Officer — prior enlisted
O-1E	$2,556	$2,160
O-2E	$2,691	$2,280
O-3E	$2,802	$2,433
Officer
O-1	$2,202	$1,953
O-2	$2,439	$2,133
O-3	$2,709	$2,337
O-4	$2,913	$2,538
O-5	$3,060	$2,595
O-6	$3,084	$2,691
O-7	$3,105	$2,736

What this rate means

O-3 with dependents, nearest stations0 – $6,633 / month

Westchester County$6,633

Savannah$2,745

Salt Lake City$2,742

County Cost Group 820$2,730

Charleston$2,721

Panama City$2,709

Salem$2,709

Yakima$2,703

Houston$2,700

Coos Bay$2,697

Anniston$1,686

Panama City is #144 of 338. The spread between the dearest and cheapest station at this grade is $4,947 a month — $59,364 a year, untaxed.

Every pay grade at Panama City0 – $3,105 / month

E-1$2,058

E-2$2,058

E-3$2,058

E-4$2,058

E-5$2,163

E-6$2,442

E-7$2,538

E-8$2,643

E-9$2,766

W-1$2,460

W-2$2,580

W-3$2,712

W-4$2,787

W-5$2,886

O-1E$2,556

O-2E$2,691

O-3E$2,802

O-1$2,202

O-2$2,439

O-3$2,709

O-4$2,913

O-5$3,060

O-6$3,084

O-7$3,105

Promoting to O-4 here adds $204 a month. The pay chart moves this allowance far less than the map does.

Where you are stationed outweighs what you are paid. Moving from Panama City to Westchester County at O-3 is worth $3,924 a month — about 19 promotions worth of housing allowance, at $204 per grade here.

Dependency status is worth 16% here. That is a status your finance office determines, not a box you tick — and it is the single largest lever on this page that is not a change of address.

None of it is taxed. $2,709 a month of BAH takes more than $2,709 of basic pay to match, which is why comparing a civilian salary against military base pay alone understates the gap.

Things the rate table doesn't tell you

“With dependents” is a dependency status, not a marital status. A single member paying child support can be authorized BAH-Diff; a married dual-military couple with no children is not automatically the with-dependents rate for both. If your situation is unusual, your finance office decides — not this table.

O-8, O-9 and O-10 draw the same BAH as O-7. The table stops there for a reason, not because it is missing rows.

This is CONUS BAH only. Overseas is OHA, which works differently — it reimburses actual rent up to a cap, with separate utility and move-in allowances. Alaska and Hawaii are BAH; Germany, Japan and Korea are OHA.

O-3 at Panama City draws $2,709 per month with dependents in 2026, $2,337 without

What this rate means

Things the rate table doesn't tell you