CZTE

Military abbreviation · Military Term

CZTE
Stands forCombat Zone Tax Exclusion
CategoriesMilitary

CZTE stands for Combat Zone Tax Exclusion, a military term abbreviation.

Federal tax benefit that excludes military pay earned in a designated combat zone or qualified hazardous duty area from income tax. Enlisted members and warrant officers exclude all such pay, while officers exclude up to a cap tied to top enlisted pay.

Example: Thanks to the CZTE, none of her pay for the seven months in Kuwait was taxed.

Usage notes

A member who serves even one day of a month in a combat zone excludes that entire month's pay. Members may still choose to count excluded pay when figuring the earned income tax credit. Reenlistment bonuses signed in a combat zone are also excluded.

More military term abbreviations

  • CP – Command post
  • CQ – Charge of quarters
  • CQB – Close-quarters battle
  • CSAR – Combat search and rescue
  • CT – Counterterrorism
  • CUI – Controlled unclassified information
  • DA – Direct action
  • DD – Dishonorable discharge
  • DEERS – Defense Enrollment Eligibility Reporting System
  • DEFCON – Defense readiness condition
  • DEP – Delayed Entry Program
  • DEROS – Date eligible for return from overseas

See all 248 military term abbreviations →