My boat used to deploy to the Persian Gulf, and for many years as long as the boat spent at least a little time in certain areas, pay for that month was tax-fre

My boat used to deploy to the Persian Gulf, and for many years as long as the boat spent at least a little time in certain areas, pay for that month was tax-free. A LOT of re-enlistments (with those 6-figure bonuses) were done to take maximum advantage of those rules.