I was going to ask when they changed that. We paid taxes on my husband’s salary when he served. The only part that wasn’t taxed was the housing allowance.
A solider serving in Germany or States side would have his pay taxed. A solider serving in Afghanistan would not. As soon as the solider left Afghanistan, his pay would again be taxed (usually starting on the 1st of the month after he left the combat zone).
Been there, done that.