O-3 is a Captain in the Army, Marine Corps, Air Force and Space Force and a Lieutenant in the Navy and Coast Guard. It is the top of the company grade officers in the Army, Air Force and Marine Corps; the Navy calls the same group junior grade. Commissioned officers hold presidential commissions and are confirmed at their ranks by the Senate.
O-3 basic pay a month in 2026 at over 6 years of service, the step in the worked example below. By years of service it runs from $5,534.10 to $9,004.20.
DFAS pay table, effective January 1, 2026Monthly BAH for an O-3 with dependents, Minneapolis/St. Paul, 2026 ($2,688 without).
DoD BAH rate data, MHA MN159Minnesota median annual wage, industrial production managers, May 2025.
BLS OEWS, May 2025The rank, by service
The pay grade is the same across the services; the title is not. These are the titles on DoD's rank chart.
| Service | Title |
|---|---|
| Army | Captain |
| Marine Corps | Captain |
| Navy | Lieutenant |
| Air Force | Captain |
| Space Force | Captain |
| Coast Guard | Lieutenant |
What O-3 means in civilian terms
LockLeed's military résumé decoder, written for employers reading service records, reads O-3 this way:
Company commander at the top of the grade: 60 to 200 people, legal authority, multimillion-dollar equipment accountability. Department-manager equivalent, typically 4 to 10 years in.
What civilians in the matching jobs earn
Federal wage data sorts managers by the function they run, not by a department-manager level, so a department manager is counted in the occupation for that function. Two examples:
| Occupation | Minnesota | United States |
|---|---|---|
| Industrial Production Managers SOC 11-3051 | $123,580 | $126,060 |
| Transportation, Storage, and Distribution Managers SOC 11-3071 | $118,180 | $107,230 |
Median annual wage, BLS Occupational Employment and Wage Statistics, May 2025 (released May 15, 2026). Half the workers in the occupation earned more and half earned less.
2026 basic pay for O-3
Basic pay is set by grade and years of service. Each row is a step: the rate applies from that point until the next row. These are the DFAS rates effective January 1, 2026.
| Years of service | Per month | Per year |
|---|---|---|
| 2 or less | $5,534.10 | $66,409.20 |
| Over 2 | $6,273.90 | $75,286.80 |
| Over 3 | $6,770.40 | $81,244.80 |
| Over 4 | $7,382.70 | $88,592.40 |
| Over 6 | $7,737.00 | $92,844.00 |
| Over 8 | $8,125.50 | $97,506.00 |
| Over 10 | $8,375.70 | $100,508.40 |
| Over 12 | $8,788.20 | $105,458.40 |
| Over 14 | $9,004.20 | $108,050.40 |
Per year is 12 times the monthly rate.
With over 4 years of prior enlisted or warrant service
Officers commissioned after more than 4 years of active duty as an enlisted member or warrant officer are paid from a separate DFAS table (O-3E). The regular O-3 rates do not apply to them. The separate table matches the regular rates at first and pays more from over 14 years of service for O-3E.
O-3E
| Years of service | Per month | Per year |
|---|---|---|
| Over 4 | $7,382.70 | $88,592.40 |
| Over 6 | $7,737.00 | $92,844.00 |
| Over 8 | $8,125.50 | $97,506.00 |
| Over 10 | $8,375.70 | $100,508.40 |
| Over 12 | $8,788.20 | $105,458.40 |
| Over 14 | $9,137.10 | $109,645.20 |
| Over 16 | $9,336.90 | $112,042.80 |
| Over 18 | $9,609.60 | $115,315.20 |
The DFAS table starts O-3E pay at over 4 years of service. Per year is 12 times the monthly rate.
2026 BAH in Minneapolis/St. Paul
The Basic Allowance for Housing depends on grade, dependency status and the ZIP code of the permanent duty station. The Defense Travel Management Office states that a member on permanent duty in the 50 states who is not furnished government housing is eligible, so someone living in government quarters does not receive it. These are the 2026 monthly rates for the Minneapolis/St. Paul military housing area (MN159), which covers Minneapolis ZIP codes such as 55401.
| Grade | With dependents | Without dependents |
|---|---|---|
| O-3 | $2,910 | $2,688 |
| O-3E | $3,033 | $2,769 |
BAH changes with the duty station. Another city's rates can be far higher or lower, so look up the ZIP code that applies to you.
Why this is not a salary comparison
Basic pay is only part of military pay, and a civilian salary is a different kind of number. Two allowances sit on top of basic pay. BAS, the food allowance, is $476.95 a month for enlisted members and $328.48 for officers in 2026. BAH covers housing for members who are not in government quarters. Both are excluded from federal gross income, as IRS Publication 3 lists them among pay items that are not taxed, so a dollar of BAH is worth more than a dollar of salary.
Federal law's own yardstick, Regular Military Compensation, adds up basic pay, BAH, BAS and the federal tax advantage of those allowances. Health care, retirement and leave sit outside even that figure.
One worked example
Take an O-3 with over 6 years of service, with dependents, in the Minneapolis/St. Paul housing area, using only the published 2026 rates (BAS at the officer rate):
| Item | Per month | Per year |
|---|---|---|
| Basic pay (taxable) | $7,737.00 | $92,844.00 |
| BAH (tax-free) | $2,910 | $34,920 |
| BAS (tax-free) | $328.48 | $3,941.76 |
| Total cash | $10,975.48 | $131,705.76 |
That is $131,705.76 in cash, $38,861.76 of it tax-free. The example assumes the member is not furnished government housing: a member living in government quarters draws no BAH. Now set it next to the Minnesota median for industrial production managers, $123,580. The two numbers measure different things: the civilian median is a taxable salary across everyone in the occupation at every experience level, before an employer's health plan or retirement match. The military figure is one person's cash before its tax advantage, and before health care, retirement and leave are counted. BAH is also tied to the duty station, so it does not carry over to a civilian job.
To turn a military package into a salary target, read our guide to converting military pay to a civilian salary. It walks through grossing up the allowances and the Defense Department's Regular Military Compensation calculator.
Putting it to work
If you served at O-3: a civilian reader may not know what the grade means. Write the scope instead: how many people you led, what equipment or budget you answered for, and what changed because of your work. Pay in your field depends on your MOS, rating or AFSC as much as your grade, so check the salary lookup for the jobs you are targeting, and build the résumé in our free résumé builder.
If you are hiring: the military résumé decoder reads every grade in one table, with the acronyms that show up next to it. When you are ready to meet candidates, tell us about the role.
Other grades
Sources
Pay, allowance and wage figures on this page were pulled by script from the official sources below on September 23, 2026. The tax and legal points cite the IRS and the U.S. Code. These are 2026 rates: check the live tables before relying on a number in a later year.
- DFAS: Basic Pay, Officers, effective January 1, 2026
- DFAS: Basic Pay, Officers (O-1 to O-3) with over 4 years of prior enlisted or warrant service, effective January 1, 2026
- DFAS: Basic Allowance for Subsistence (BAS) table, 2026 rates
- Defense Travel Management Office: BAH rate lookup and the 2026 all-locations rate file (Military Housing Area MN159, Minneapolis/St. Paul, MN)
- U.S. Bureau of Labor Statistics: Occupational Employment and Wages, May 2025 (USDL-26-0725, released May 15, 2026)
- BLS Occupational Employment and Wage Statistics tables (median annual wages by state and nationally, May 2025; values pulled through the BLS public data API)
- U.S. Department of Defense: military rank insignia and pay grades
- IRS Publication 3, Armed Forces' Tax Guide (Table 2: pay items excluded from gross income)
- 37 U.S. Code § 101: definitions, including officer and Regular Military Compensation