Military allowance and special pay guide
CONUS Cost-of-Living Allowance (CONUS COLA)
CONUS COLA is a taxable allowance for designated high-cost locations in the continental United States; it is not paid at every stateside duty station.
CONUS COLA is a taxable allowance for designated high-cost locations in the continental United States; it is not paid at every stateside duty station.
What CONUS COLA covers
The allowance addresses non-housing costs in designated high-cost areas. Housing costs are handled separately through BAH, so a high BAH location does not automatically produce CONUS COLA.
What can affect the amount
- Duty location
- Pay grade
- Years of service
- Dependency status
- The current location index and threshold
Tax and pay-record treatment
CONUS COLA is generally treated as taxable compensation. Review the LES entitlement, taxable wages and remarks rather than adding it to BAH as though both receive the same tax treatment.
What happens after a move
A PCS into or out of a designated area can start, stop or change the allowance. Confirm the effective date on the LES after in-processing and keep the orders if a correction is needed.
Why a high-cost location may still pay no CONUS COLA
CONUS COLA measures designated non-housing costs against the program threshold. Housing expense is addressed separately through BAH, so high rents or a high BAH table do not prove that CONUS COLA applies.
When a location qualifies, grade, service and dependency inputs can change the amount. Because the allowance is taxable, the gross entitlement and net effect on the deposit are not identical.
What to verify on the pay record
Use the following items together; a dollar amount without the supporting authority and effective dates is not enough to confirm entitlement.
- Duty-location code and effective date
- Current location eligibility
- Pay grade, years of service and dependency status
- LES entitlement and taxable-pay treatment
Common questions
Does every CONUS duty station receive COLA?
No. Only locations meeting the current designation and threshold receive CONUS COLA.
Is CONUS COLA tax-free like qualifying BAH?
CONUS COLA is generally taxable, so compare the entitlement with taxable wages and withholding on the LES.