Combat pay is a special type of financial compensation provided to military personnel who are deployed in areas where they face imminent danger. This additional pay is intended to recognize the risks associated with serving in combat zones and to help support service members and their families during challenging times. The amount of combat pay can vary based on the location and duration of deployment. It is typically tax-exempt, meaning that service members do not have to pay federal income tax on this income. Combat pay is part of the broader military compensation system, which includes base pay and various allowances.