What Is CONUS and OCONUS? Allowances, Taxes, and Housing

CONUS means the Continental United States: the 48 contiguous states and the District of Columbia. OCONUS means Outside the Continental United States: everywhere else, including Alaska, Hawaii, Puerto Rico, Guam, the U.S. Virgin Islands, the Northern Mariana Islands, other U.S. territories, and every foreign country. The federal government sets these definitions in 41 CFR 300-3.1, and the label attached to your duty station drives real differences in pay, housing allowances, per diem, tax treatment, healthcare, schooling, and how you move your family and belongings.¹

The part that surprises people: Alaska is OCONUS. It sits on the North American continent, but the Federal Travel Regulation still excludes it, along with Hawaii. If you’re stationed in Anchorage, you’re OCONUS for pay and benefits. The U.S. Board on Geographic Names uses “Continental United States” to include Alaska, but that geographic definition is not the one federal pay systems use.² On orders, travel authorizations, and allowance tables, CONUS always means the lower 48 plus DC.

The Two Kinds of OCONUS

OCONUS splits into two subcategories, and the split matters because different allowance systems apply.¹

Non-foreign OCONUS is U.S. soil outside the contiguous 48: Alaska, Hawaii, Puerto Rico, Guam, the U.S. Virgin Islands, the Commonwealth of the Northern Mariana Islands, and other U.S. territories and possessions.
Foreign OCONUS is every other country, from large host-nation postings like Germany, Japan, South Korea, and Italy to remote or combat locations.

Non-foreign OCONUS per diem rates are set through a separate federal bulletin.³ Foreign OCONUS rates are governed by the Department of State, along with broader allowances and differentials for federal civilians at foreign posts.⁴

Housing Allowances: BAH vs. OHA

The housing allowance you receive depends on which side of the CONUS/OCONUS line your duty station falls on.

Basic Allowance for Housing (BAH) covers service members with a permanent duty station in any of the 50 states, including Alaska and Hawaii, when they are not in government housing. The rate is set by ZIP code and dependency status.⁵
Overseas Housing Allowance (OHA) covers service members stationed overseas, including in U.S. territories, when not in government housing. OHA is based on the overseas location and dependency status.

There is a wrinkle that catches families off guard. When a service member deploys on an unaccompanied overseas tour and isn’t provided government housing overseas, they can draw BAH at the “with dependents” rate for the family’s U.S. residence ZIP code and OHA at the “without dependents” rate for the overseas location at the same time.⁵

Per Diem and Temporary Lodging

The dollar gap between CONUS and OCONUS rates is where the label first shows up in a paycheck. For fiscal year 2026, the standard CONUS per diem rate is $110 for lodging and $68 for meals and incidental expenses. Higher-cost CONUS cities raise the M&IE ceiling to $92, but the baseline stays modest.⁶

Non-foreign OCONUS rates run much higher. Anchorage is set at $329 lodging and $148 M&IE from April through September 2026. Even Puerto Rico’s standard rate is $183 lodging and $116 M&IE.³ Foreign OCONUS rates vary more widely and are published by the State Department.

Temporary lodging during a PCS follows the same split. Temporary Lodging Expense (TLE) reimburses lodging and meals during a move within or returning to CONUS, capped at $290 per day and up to 21 days for a CONUS-to-CONUS move. When moving to an OCONUS station, TLE covers only up to 7 days. The overseas equivalent is Temporary Lodging Allowance (TLA), which covers lodging at the overseas location itself.⁷

For civilian employees on a permanent change of station, temporary quarters allowances also differ. CONUS-to-CONUS moves authorize up to 60 days of temporary quarters, extendable to 150. Moves from OCONUS authorize up to 90 days initially, extendable to 180.⁸ All of these entitlements for military members and DoD civilians are governed by the Joint Travel Regulations, which set different procedures and reimbursement methods for each side.⁹

Cost-of-Living Allowances and Hardship Pay

Both CONUS and OCONUS duty stations can trigger a Cost-of-Living Allowance, but the two programs are not the same.

Overseas COLA is a non-taxable allowance for service members at OCONUS locations where the cost of non-housing goods and services exceeds CONUS levels. It’s calculated using data from the Living Pattern Survey, which tracks local prices for groceries, clothing, childcare, transportation, and entertainment.¹⁰

CONUS COLA exists too but is less well known. Service members at expensive CONUS duty stations where the non-housing cost of living exceeds the national average by at least 8% receive a supplemental allowance. Unlike its overseas counterpart, CONUS COLA is taxable.¹¹

Certain OCONUS locations also qualify for Hardship Duty Pay, which compensates service members for living conditions significantly more difficult than typical U.S. duty stations. Rates range from $50 to $150 per month depending on the location, and the rate drops to a maximum of $100 when the member also receives hostile fire or imminent danger pay.¹²

Taxes When You’re OCONUS

Moving OCONUS does not change your federal tax obligations. U.S. citizens owe federal income tax on worldwide income regardless of where they live, and wages paid by the U.S. government stay subject to standard withholding even when the employee is working overseas.¹³

The Foreign Earned Income Exclusion, which lets qualifying taxpayers exclude up to $132,900 in foreign-earned income for tax year 2026, is not available to government employees or military members. It applies only to private-sector employees and contractors working abroad.¹⁴ A private-sector employee who qualifies can file Form 673 with their employer to claim an exemption from withholding based on the anticipated exclusion.¹³

Military members do get a meaningful tax break in designated combat zones. Enlisted members can exclude all pay earned during months served in a combat zone, including reenlistment bonuses and pay for accrued leave sold back. Commissioned officers face a monthly cap tied to the senior enlisted member’s basic pay plus hostile fire pay. State tax treatment varies: some states exempt military pay entirely, others follow the federal combat-zone rules.

Shipping a Vehicle and Household Goods

The logistics of an OCONUS move look nothing like a CONUS-to-CONUS relocation. The government will ship one privately owned vehicle at its expense when a service member or DoD civilian receives PCS orders to, from, or between OCONUS locations. The vehicle must be self-propelled, licensed for public roads, in your name or a dependent’s name, and no more than 20 measurement tons.¹⁵

Timing requirements differ by branch. Air Force personnel can deliver a vehicle to the port within 90 days of departure for tours longer than a year, or 30 days for shorter tours. Army, Navy, Marine Corps, and Coast Guard members need at least 12 months remaining on their OCONUS tour at drop-off. The vehicle has to be dry-vacuum clean, hold no more than a quarter tank of fuel, and be in operable condition with working brakes.¹⁵

What you can pack inside the vehicle is tightly restricted. Vehicle tools up to $200 in value, a spare tire, child car seats, strollers, and small packed items are allowed. Televisions that aren’t factory-installed, household goods, pressurized cans, and hazardous materials are prohibited.¹⁵

Coming back, government personnel and their families returning from extended OCONUS duty can bring personal and household effects back into the United States duty-free under the Harmonized Tariff Schedule. The exemption covers the member’s family if they resided together at the overseas post. It does not cover items imported for sale or items that weren’t in the household’s direct possession while abroad. Alcohol and tobacco carry specific limits and must accompany the person entering the country.¹⁶

Healthcare, Schools, and Family Screening

An OCONUS assignment changes how a military family accesses healthcare. Stateside, TRICARE beneficiaries use military treatment facilities or civilian network providers under TRICARE Prime or Select. Overseas, those plans convert to the TRICARE Overseas Program (TOP). TOP Prime works like an HMO with a primary care manager who coordinates referrals; TOP Select offers more provider freedom at higher out-of-pocket cost. Many overseas installations handle routine care at their own military hospitals or clinics, but specialty care often involves host-nation providers.

Families with special medical or educational needs face an extra step before an OCONUS move. The Exceptional Family Member Program requires a travel screening for every family member, even those already enrolled, to confirm the gaining installation can provide the necessary services. Families with children on an Individualized Education Plan or Individualized Family Service Plan need this cleared before orders are approved.

For school-age children, the Department of Defense Education Activity runs schools at OCONUS installations. Command-sponsored children of service members and DoD civilians can enroll tuition-free from pre-K through 12th grade. Children of non-DoD federal employees may attend on a tuition-paying basis when space is available. There is no equivalent system at CONUS installations, where children attend local public or private schools.

Voting From an OCONUS Address

Federal law guarantees that military members, their families, and other U.S. citizens living outside the country can register and vote absentee in all federal elections. The Uniformed and Overseas Citizens Absentee Voting Act requires election officials to send ballots at least 45 days before each federal election and to accept the Federal Post Card Application as both a voter registration form and absentee ballot request.¹⁷

Overseas voters can use their last U.S. address as their voting residence even if they no longer own property there. If the regular absentee ballot doesn’t arrive in time, the Federal Write-in Absentee Ballot serves as a backup. Election officials must provide an electronic option for blank ballot delivery on request, though the rules for returning completed ballots vary by state.¹⁷

Legal Status at Foreign OCONUS Postings

Service members stationed in foreign countries operate under Status of Forces Agreements between the United States and the host nation. These agreements establish which country has legal jurisdiction over U.S. personnel for various offenses, protect access to on-base facilities such as commissaries and exchanges, and define the legal status of military dependents. The specifics vary by country, and not every nation where U.S. forces operate has a formal SOFA in place. If you or a family member ends up in a legal situation with host-nation authorities, the agreement at your specific duty station is what governs the outcome.

1
eCFR. 41 CFR 300-3.1 – What Do the Following Terms Mean
2
U.S. Geological Survey. What Constitutes the United States What Are the Official Definitions
3
Federal Register. Revised Non-Foreign Overseas Per Diem Rates
4
U.S. Department of State. Foreign Per Diem Rates – Home Page
5
Military Compensation and Financial Readiness. Different Types of BAH
6
Federal Register. Maximum Per Diem Reimbursement Rates for the Continental United States CONUS
7
Defense Finance and Accounting Service. Temporary Lodging Expense TLE
8
Defense Finance and Accounting Service. OCONUS to CONUS – Civilian Permanent Change of Station PCS
9
Defense Travel Management Office. Joint Travel Regulations
10
Defense Travel Management Office. Overseas Cost-of-Living Allowance
11
Defense Travel Management Office. CONUS Cost-of-Living Allowance
12
Defense Finance and Accounting Service. Hardship Duty Pay – Location
13
Internal Revenue Service. Federal Income Tax Withholding for Persons Employed Abroad by a US Person
14
Internal Revenue Service. IRS Releases Tax Inflation Adjustments for Tax Year 2026
15
USTransCOM. Shipping Your POV – Defense Transportation Regulation Part IV Attachment A-K3
16
eCFR. 19 CFR Part 148 – Personal Declarations and Exemptions
17
US Election Assistance Commission. Fact Sheet – Serving UOCAVA Voters