Last Updated: October 26, 2026 Reading Time: 7 min

Selling back military leave at separation turns unused days into a cash payment. Each day is worth one-thirtieth of your monthly basic pay, and you can be paid for no more than 60 days over your whole career. For an E-5 with over 6 years in 2026, 60 days comes to $8,220.00 before taxes. For an O-4 with over 10, it's $18,840.00.

How Selling Back Military Leave Is Calculated

When you leave active duty with days still on the books, 37 U.S.C. 501 lets the service pay you for them. The payment uses your basic pay at the rate you're entitled to on the day you're discharged. A member discharged under other than honorable conditions forfeits all accrued leave.

Two numbers do the work:

  • Per day: monthly basic pay ÷ 30
  • Your payment: per-day rate × days sold (60 at most over a career)

Sixty days is exactly two months of basic pay, and 30 days is one month. Housing allowance, subsistence allowance and special pays stay out of the formula. To see your full monthly pay, the military pay calculator shows basic pay by grade and years of service.

What 60 Days of Leave Is Worth by Rank in 2026

These figures come from the 2026 DFAS basic pay tables. They show the per-day rate, the value of 30 days and the value of the full 60-day cap at common separation and retirement points.

Grade and years Monthly basic pay Per day 30 days 60 days
E-3, over 2 $3,015.00 $100.50 $3,015.00 $6,030.00
E-4, over 4 $3,658.50 $121.95 $3,658.50 $7,317.00
E-5, over 4 $3,946.80 $131.56 $3,946.80 $7,893.60
E-5, over 6 $4,110.00 $137.00 $4,110.00 $8,220.00
E-6, over 8 $4,612.80 $153.76 $4,612.80 $9,225.60
E-6, over 10 $4,759.50 $158.65 $4,759.50 $9,519.00
E-7, over 20 $6,245.70 $208.19 $6,245.70 $12,491.40
E-8, over 22 $7,308.30 $243.61 $7,308.30 $14,616.60
E-9, over 26 $9,267.90 $308.93 $9,267.90 $18,535.80
W-2, over 8 $6,051.00 $201.70 $6,051.00 $12,102.00
W-3, over 20 $8,476.50 $282.55 $8,476.50 $16,953.00
O-2, over 3 $6,272.40 $209.08 $6,272.40 $12,544.80
O-3, over 4 $7,382.70 $246.09 $7,382.70 $14,765.40
O-3, over 8 $8,125.50 $270.85 $8,125.50 $16,251.00
O-4, over 10 $9,420.00 $314.00 $9,420.00 $18,840.00
O-5, over 20 $12,032.70 $401.09 $12,032.70 $24,065.40
O-6, over 26 $15,188.70 $506.29 $15,188.70 $30,377.40

Method: 2026 DFAS monthly basic pay cell for the grade and years shown. Per day = monthly ÷ 30, rounded to the cent. 30 days = one monthly cell. 60 days = monthly × 2. Pre-tax, basic pay only.

Your actual check depends on the exact days on your leave balance, your rate on the discharge date, and any days you already sold earlier in your career. Your final leave and earnings statement shows the days paid.

If you separate in 2027, the payment uses the 2027 rate in effect on your discharge date. That table isn't official yet, so it isn't shown here.

The 60-Day Career Cap on Selling Back Leave

The 60 days cover your whole career, so the count doesn't reset when you reenlist. Every day you've been paid for since February 9, 1976 counts against it.

Say you sold 20 days when you reenlisted at year four. At separation, you could sell no more than 40.

If you reach separation with more days than you can sell, the extra days only have value if you take them as leave.

The Guard and Reserve exception

Under 37 U.S.C. 501(b)(5), the 60-day cap doesn't apply to leave a Guard or Reserve member accrues while serving on active duty for more than 30 days and no more than 365 days, or on active duty in support of a contingency operation. DoD's pay regulation (FMR Volume 7A, chapter 35) gives the example of a Reserve officer who had already sold 58 days and was still paid for leave earned on a tour of under a year.

If your leave and earnings statement shows a lower ceiling than you expect, ask your finance office which sales were counted.

Selling Back Leave vs Terminal Leave

Terminal leave means you take your remaining days as leave right before your separation date. You stay on active duty during those days, so you keep drawing basic pay, Basic Allowance for Housing (BAH) and Basic Allowance for Subsistence (BAS).

Selling back the same days pays only the basic pay part.

Here's 60 days for an E-5 with over 6 years:

Pay item Sell back 60 days Take 60 days of terminal leave
Basic pay $8,220.00 $8,220.00
BAS (2026 enlisted rate) None $953.90
BAH None Two months at your local rate
On active duty for those days No Yes

For an officer, two months of BAS at the 2026 rate adds $656.96. BAH depends on your duty station and whether you have dependents. Look up your rate in the BAH and RMC calculator.

You're still on active duty while on terminal leave, which matters if a civilian job starts before your separation date. Our guide to the money surprises in a military-to-civilian move covers the overlap issues.

Cash makes sense when your unit can't release you for terminal leave, or when you'd rather start a civilian job sooner and take the payment.

Taxes on Sold-Back Leave

DoD's pay regulation says payments for accrued leave are normally subject to taxation and income tax withholding (FMR Volume 7A, chapter 35, 2.3.1). Check the withholding on your final leave and earnings statement. Leave earned in a combat zone tax exclusion month is different: for enlisted members and warrant officers it's tax-exempt, and for officers it's exempt up to the monthly officer limit.

For a rough take-home figure on your regular pay, try the military take-home pay calculator. Our military pay after taxes by rank post explains which parts of military pay are taxed.

Calculate Your Basic Pay Before You Sell Leave

Find your grade and years of service in the military pay calculator, then divide the monthly basic pay by 30. Multiply by the days you plan to sell. Moving to a federal civilian job? The military-to-GS pay translator compares your military pay to a GS salary.

Frequently Asked Questions

How much do you get for selling back military leave?

You get one-thirtieth of your monthly basic pay for each day, at the rate on your discharge date. For an E-5 with over 6 years in 2026, that's $137.00 a day, or $8,220.00 for 60 days, before taxes.

Can you sell back more than 60 days of leave?

No. The law caps leave payments at 60 days over a whole military career, and days sold at an earlier reenlistment count toward it. Leave a Guard or Reserve member accrues on an active-duty tour of more than 30 days and up to 365 days, or in support of a contingency operation, is excluded from the count.

Does sold-back leave include BAH and BAS?

No. The payment is based on basic pay only. If you take the same days as terminal leave instead, you keep receiving BAH and BAS until your separation date.

Is it better to sell leave or take terminal leave?

Terminal leave usually pays more, because it includes BAH and BAS on top of basic pay. Selling back makes sense when your command can't release you for terminal leave, or when you'd rather start a civilian job sooner and take the cash.

Is sold-back military leave taxed?

Usually. DoD's pay regulation says payments for accrued leave are normally subject to taxation and income tax withholding. Leave earned in a combat zone tax exclusion month is tax-exempt for enlisted members and warrant officers, and exempt up to a monthly limit for officers.

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