The US military offers a variety of non-taxable cash benefits to its members, including a housing allowance. Known as BAH, or "Basic Allowance for Housing," this housing allowance assists military members in paying for off-base housing. For military members owning a home, the housing allowance can be applied toward mortgage and other home ownership expenses such as property taxes. While not directly tax-deductible, the military's housing allowance is indirectly deducted through the mortgage interest and property tax deductions.
