TL;DR: Kentucky is home to two of the Army’s most storied and operationally active installations — Fort Campbell and Fort Knox — plus the Blue Grass Army Depot and the 123rd Airlift Wing in Louisville. This guide covers what each installation does, where military families choose to live, current BAH rates by pay grade, the Kentucky tax picture for active duty and veterans, and how to make the most of your VA home loan in the Bluegrass State.
If you have orders to Fort Campbell or Fort Knox, you are heading to one of the most military-connected regions in the country. Both installations are deeply embedded in their surrounding communities — Clarksville, TN, and Elizabethtown, KY, respectively — and both offer housing markets where BAH goes meaningfully further than the national average. Kentucky’s active duty military pay exemption means your base pay stays untouched by state income tax, which is a financial advantage that matters across a full tour. Before you start house-hunting, grab your free VA Home Loan Snapshot — it takes 60 seconds, requires no credit pull, and shows exactly what your BAH supports at current VA loan rates near either installation.
Kentucky Military Installations: Overview
Kentucky’s military footprint is Army-dominant. The state hosts two large active-duty Army installations, one Army depot, and one Air National Guard wing. Together, they contribute more than $5 billion annually to the state’s economy and employ approximately 40,000 personnel. Here is how each installation breaks down by mission and location.
Fort Campbell — Southwest Kentucky (Kentucky-Tennessee Border)
Fort Campbell sits on the Kentucky-Tennessee state line between Hopkinsville, KY, and Clarksville, TN. Although the post’s mailing address is in Kentucky, the majority of its 105,000 acres and most of its on-post housing sits in Tennessee. That geographic split has real implications for where families choose to live — and which state’s tax rules apply to their property and income.
Mission and key units
Fort Campbell is one of the most operationally deployed installations in the entire Army. The post is home to approximately 26,000 active duty soldiers and nearly 40,000 family members. Its major tenant units include:
- 101st Airborne Division (Air Assault) — “Screaming Eagles”: The only air assault division in the Army. Conducts rapid deployment operations globally.
- 5th Special Forces Group (Airborne): Specializes in unconventional warfare and special operations across the Middle East and Central Asia.
- 160th Special Operations Aviation Regiment (Airborne) — “Night Stalkers”: Elite aviation support for special operations forces, famous for nighttime precision missions.
- 52nd Ordnance Group (EOD): Explosive ordnance disposal operations.
- 86th Combat Support Hospital: Full-spectrum medical support.
Fort Campbell is one of the Army’s highest deployment-tempo posts. Families heading here should know upfront: deployment cycles are real, back-to-back tours happen, and building a solid local support network matters more here than at most installations. The PCS Pay It Forward® community at Fort Campbell is one of the largest and most active on the network — join it before you arrive.
On-base housing at Fort Campbell
On-post housing at Fort Campbell is privatized and managed by Campbell Crossing (Lendlease). The community is large, walkable, and well-maintained, with a mix of newer construction and older legacy housing. Waitlists exist, particularly during summer PCS season. Register on the Homes.mil waitlist as soon as your orders arrive — not after you in-process.
Off-base neighborhoods near Fort Campbell
Most Fort Campbell families live in Clarksville, TN. Additional options include Oak Grove, KY (on the Kentucky side, very close to the gates), and Hopkinsville, KY. Clarksville dominates because it combines affordable housing, strong school zones in the Rossview and Sango areas, and Tennessee’s zero state income tax on wages.
For a full neighborhood-by-neighborhood breakdown, commute times by gate, and VA loan math specific to the Clarksville market, see our buying a home near Fort Campbell guide.
Fort Knox — Northern Kentucky (Hardin County)
Fort Knox sits approximately 35 miles southwest of Louisville in Hardin County, covering portions of Bullitt, Hardin, and Meade counties across nearly 109,000 acres. The surrounding communities — Elizabethtown, Radcliff, and Vine Grove — are small-town Kentucky at its most military-welcoming.
Mission and key units
Fort Knox’s mission has evolved significantly over the past two decades. It is now the home of the Army’s Human Resources Center of Excellence, which includes:
- U.S. Army Human Resources Command (HRC): Manages personnel operations and assignments for the entire Army. If your career manager works here, so does your fate.
- U.S. Army Cadet Command: Oversees ROTC programs at colleges and universities across the country, including all summer training for ROTC cadets.
- U.S. Army Armor School: Trains thousands of soldiers and cadets annually on M1 Abrams tank operations and armor leadership.
Fort Knox has a lower deployment tempo than Fort Campbell. For families who have cycled through high-deployment posts, that can be a welcome change. The community around Fort Knox — particularly Elizabethtown — is steady, affordable, and genuinely military-friendly without being entirely consumed by the installation.
The U.S. Bullion Depository
Fort Knox is globally famous for the U.S. Bullion Depository, which stores approximately 147.3 million troy ounces of gold on behalf of the federal government. The facility is not open to the public, but the General George Patton Museum of Leadership on post is — and it is worth the visit for history-minded families and curious kids.
On-base housing at Fort Knox
On-post housing at Fort Knox is managed by Knox Hills Communities. Waitlist times vary by rank and bedroom count and can range from a few months to over a year. As with Fort Campbell, register on Homes.mil immediately when orders arrive.
Off-base neighborhoods near Fort Knox
Elizabethtown (known locally as E-town) and Radcliff are the two primary off-post communities. Radcliff is directly adjacent to the installation and has a strong military presence. Elizabethtown offers more retail and dining options and slightly longer commutes. Vine Grove is smaller and more rural, popular with families who want space and quiet. The Fort Knox area is consistently strong for VA loan homeownership because BAH at most pay grades covers a full mortgage payment in these communities.
Blue Grass Army Depot (BGAD) — Madison County
Located in Richmond, Kentucky, the Blue Grass Army Depot is a U.S. Army storage and munitions facility rather than a traditional installation. BGAD completed its chemical weapons demilitarization program in 2023, safely destroying the last of the Army’s chemical weapons stockpile held in central Kentucky. Today, BGAD continues to store and manage conventional explosive munitions, conduct quality assurance for Army supplies, and operate specialized facilities including the Molten Salt Research and Development Facility. Public access is restricted. For more information, visit the official BGAD website.
123rd Airlift Wing — Louisville
The 123rd Airlift Wing is the only Air National Guard installation in Kentucky and the state’s only Air Force presence. Based at Louisville Muhammad Ali International Airport, the 123rd flies the C-130J Super Hercules and specializes in airlift, humanitarian missions, and special operations support. Guard members stationed here maintain civilian careers and military service simultaneously — the unit activates for training, federal missions, and disaster response.
Living in Kentucky as a Military Family: The Honest Picture
Kentucky offers a quality of life that is genuinely underrated in military circles. The cost of living is well below the national average at both major installations, the communities are patriotic and military-connected, and outdoor recreation is abundant year-round. However, there are real challenges you should know before you arrive.
What works well
Housing affordability is the headline advantage. Near Fort Knox, BAH at most enlisted pay grades covers a full mortgage payment — principal, interest, taxes, and insurance — in Elizabethtown and Radcliff. Near Fort Campbell, the Clarksville, TN market is active with new construction but remains significantly more affordable than most comparable military markets. Families who buy here and sell after a three-year tour frequently walk away with equity.
Additionally, Kentucky’s active duty military pay exemption means your base pay is not subject to Kentucky state income tax. That is meaningful money over a two- or three-year tour. For families choosing to live on the Tennessee side of Fort Campbell, Tennessee taxes no earned income at all, compounding the advantage.
What to prepare for
Fort Campbell’s deployment tempo is among the highest in the Army. The 101st deploys. The Night Stalkers deploy. The 5th SFG deploys. If you are a spouse moving here with young children, building your support network before the first deployment is not optional — it is survival. Register with ACS, find your installation Facebook group, and make connections before your soldier leaves.
Near Fort Knox, the community is smaller and more contained than Clarksville. Elizabethtown offers the basics, but Nashville-level entertainment is a two-hour drive. If you are accustomed to large metro areas, E-town takes some adjustment. On the other hand, if you want affordable housing, low traffic, and a slower pace, Fort Knox is a hidden gem.
Tornado risk is real in western Kentucky near Fort Campbell. Spring severe weather season runs roughly March through May. Have a plan, have a weather radio, and know your shelter options — on and off post.
Schools near Kentucky military installations
Near Fort Campbell, most military families school their children in the Clarksville-Montgomery County School System (CMCSS) in Tennessee — a large, fast-growing district very experienced with military children and frequent transfers. On the Kentucky side, Christian County Public Schools serves Oak Grove and Hopkinsville families. The Rossview and Sango zones within CMCSS are generally the most sought-after. For DoDEA on-post school information, contact the Fort Campbell School Liaison Office.
Near Fort Knox, Hardin County Schools is the primary district, serving Elizabethtown and Radcliff. Meade County Schools serves Vine Grove and Brandenburg. Both districts have experience with military families and follow the Interstate Compact on Educational Opportunity for Military Children, which eases transfer credits, records requests, and sports eligibility across state lines.
BAH Rates for Kentucky Military Installations
BAH rates are updated annually by the DoD each January. Kentucky’s two installation markets have historically remained affordable relative to BAH at most pay grades, with Fort Campbell running higher than Fort Knox due to stronger rental demand in the Clarksville, TN market. Use the tables below for planning, then use the free VA Home Loan Snapshot to see your actual buying power at current rates — no credit pull, no obligation, 60 seconds.
Fort Campbell BAH Rates (MHA: FORT CAMPBELL, KY)
| Pay Grade | With Dependents | Without Dependents |
|---|---|---|
| E-1 | $1,743 | $1,470 |
| E-2 | $1,743 | $1,470 |
| E-3 | $1,743 | $1,470 |
| E-4 | $1,743 | $1,470 |
| E-5 | $1,815 | $1,593 |
| E-6 | $2,100 | $1,671 |
| E-7 | $2,244 | $1,743 |
| E-8 | $2,400 | $1,878 |
| E-9 | $2,580 | $1,956 |
| O-1 | $1,857 | $1,668 |
| O-2 | $2,097 | $1,794 |
| O-3 | $2,496 | $1,995 |
| O-4 | $2,793 | $2,250 |
| O-5 | $3,006 | $2,334 |
| O-6 | $3,030 | $2,478 |
Data last verified: April 2026. BAH rates update every January 1. Confirm current figures at the DoD BAH calculator or with your finance office.
Fort Knox BAH Rates (MHA: FORT KNOX, KY)
| Pay Grade | With Dependents | Without Dependents |
|---|---|---|
| E-1 | $1,575 | $1,350 |
| E-2 | $1,575 | $1,350 |
| E-3 | $1,575 | $1,350 |
| E-4 | $1,575 | $1,350 |
| E-5 | $1,647 | $1,443 |
| E-6 | $2,136 | $1,602 |
| E-7 | $2,241 | $1,680 |
| E-8 | $2,352 | $1,764 |
| E-9 | $2,505 | $1,893 |
| O-1 | $1,710 | $1,503 |
| O-2 | $2,133 | $1,683 |
| O-3 | $2,421 | $1,956 |
| O-4 | $2,724 | $2,241 |
| O-5 | $2,943 | $2,301 |
| O-6 | $2,964 | $2,403 |
Data last verified: April 2026. BAH rates update every January 1. Confirm current figures at the DoD BAH calculator or with your finance office.
For a full breakdown of how your BAH rate affects buying power by ZIP code, see our BAH rates guide or use the BAH calculator.
Using Your VA Home Loan at Kentucky Installations
Both Fort Campbell and Fort Knox are among the strongest VA loan markets in the country — not because BAH is enormous, but because local home prices are affordable enough that BAH-backed purchasing power goes all the way to the closing table.
Near Fort Knox, an E-5 with dependents receives $1,647 per month in BAH. In Elizabethtown and Radcliff, that figure covers a mortgage on a home in the $230,000–$280,000 range at current VA loan rates, including principal, interest, Hardin County property taxes, and homeowner’s insurance. That is not typical. At most duty stations, BAH covers rent but falls short of owning. At Fort Knox, the math works — which is exactly why military families buy here at one of the highest ownership rates in the Army.
Near Fort Campbell, the Clarksville, TN market is more competitive but still highly favorable. An E-5 with dependents at $1,815 per month in BAH can access homes in the $240,000–$310,000 range in most Clarksville neighborhoods, with North Clarksville offering the shortest commute and East Clarksville (Sango/Rossview) offering the best school zones at a 30–45 minute commute tradeoff.
VA loans require $0 down payment, no private mortgage insurance, and are available to any active duty service member with sufficient service. Our team of military spouse and veteran real estate experts knows both markets from the inside. Learn how the VA home loan works or start your free PCS Plan to connect with a local expert who has lived this move.
Kentucky State Tax Benefits for Military Families
Kentucky’s tax picture for active duty service members is one of the clearest in the country: your military pay is fully exempt from Kentucky income tax. Every dollar of base pay, BAH, and BAS is protected under KRS 141.019(1)(I). You owe nothing to Kentucky on active duty compensation, regardless of where you are stationed, as long as Kentucky is your state of legal residence.
Active duty income tax exemption
Kentucky does not tax active duty military pay. This applies to all branches and all components — Army, Navy, Air Force, Marine Corps, Coast Guard, Space Force, National Guard, and Reserve. If Kentucky income tax was incorrectly withheld from your pay, the Kentucky Department of Revenue will refund it. For official confirmation, see the Kentucky Department of Revenue military exemptions page.
Military retirement pay
Kentucky’s treatment of military retirement pay is more nuanced than its active duty exemption. Service members who retired before January 1, 1998, pay zero Kentucky income tax on their retired pay. Those who retired on or after January 1, 1998, may exclude up to $31,110 of military retirement income from Kentucky taxable income under Schedule M. Legislators have introduced bills to expand this exemption further — check the Kentucky Legislature’s website for current status.
Property tax exemption for disabled veterans
Totally disabled veterans who are Kentucky homeowners qualify for a homestead exemption that reduces the assessed value of their primary residence before property taxes are calculated. The exemption amount is recalculated every two years to adjust for inflation — for the 2025–2026 assessment period it is set at $49,100. Disabled veterans need only apply once through their county Property Valuation Administrator using Form 62A350. No annual renewal is required as long as disability status has not changed. Additional information is available through the Kentucky Department of Veterans Affairs.
Military Spouses Residency Relief Act (MSRRA)
Under MSRRA, a nonresident military spouse may be exempt from Kentucky income taxes on wages earned while stationed in Kentucky. This is particularly relevant for Fort Campbell families — spouses who work in Tennessee while maintaining legal residency in another state should consult a military tax professional to understand their filing obligations before claiming the exemption.
Planning Your PCS to Kentucky
Getting orders to Fort Campbell or Fort Knox means making several decisions quickly: live on-post or off, buy or rent, Tennessee side or Kentucky side. Our resources will help you get ahead of every one of them.
- Get your free VA Home Loan Snapshot — see your real buying power in 60 seconds
- Start your free PCS Plan — connect with a military spouse or veteran local expert
- Fort Campbell base guide — housing, schools, facilities, and community resources
- Fort Knox base guide — Elizabethtown neighborhoods, schools, and in-processing tips
- Complete VA home loan guide — eligibility, how it works, and what to expect
- DITY/PPM move guide — if you are moving your own household goods
- PCS binder and checklist — stay organized from orders to in-processing
- Military pay charts — full pay table by grade and years of service
- Find Your Base directory — guides for 115+ U.S. installations
Frequently Asked Questions: Military Bases in Kentucky
What military bases are in Kentucky?
Kentucky has two active Army installations — Fort Campbell and Fort Knox — plus the Blue Grass Army Depot in Madison County and the 123rd Airlift Wing (Kentucky Air National Guard) in Louisville. Fort Campbell is home to the 101st Airborne Division and sits on the Kentucky-Tennessee border. Fort Knox, in Hardin County, is home to U.S. Army Human Resources Command and the Army Armor School.
Is Fort Campbell in Kentucky or Tennessee?
Fort Campbell straddles both states. The post’s mailing address is in Kentucky (Fort Campbell, KY 42223), but the majority of the installation’s land and on-post housing is in Tennessee. The Clarksville-Montgomery County community on the Tennessee side is where most military families choose to live. Some families prefer the Kentucky side — specifically Oak Grove — for a shorter commute to the gates.
What are the BAH rates at Fort Campbell?
Fort Campbell BAH rates are updated annually on January 1 by the DoD and are based on rental costs in the Fort Campbell, KY Military Housing Area. Rates vary by pay grade and dependent status. Use the DoD BAH calculator with a Fort Campbell MHA ZIP code such as 42223 to confirm your current rate. The table in this guide reflects the most recently verified figures.
What are the BAH rates at Fort Knox?
Fort Knox BAH rates are updated annually on January 1 and are based on rental costs in the Fort Knox, KY Military Housing Area. Rates vary by pay grade and dependent status. Use the DoD BAH calculator with a Fort Knox MHA ZIP code such as 40121 to confirm your current rate. The table in this guide reflects the most recently verified figures.
Does Kentucky tax active duty military pay?
No. Kentucky fully exempts all active duty military pay from state income tax under KRS 141.019(1)(I). This applies to every branch and component — Army, Navy, Air Force, Marine Corps, Coast Guard, Space Force, National Guard, and Reserve. Kentucky income tax should not be withheld from your active duty pay; if it is, you are entitled to a full refund from the Kentucky Department of Revenue.
What is the property tax exemption for disabled veterans in Kentucky?
Totally disabled veterans who own a home in Kentucky qualify for a homestead exemption that reduces the assessed value of their primary residence before property taxes are calculated. The exemption amount recalculates every two years — for the 2025–2026 assessment period it is $49,100. Apply through your county Property Valuation Administrator using Form 62A350. No annual renewal is required once the exemption is granted.
Is it better to live on the Kentucky or Tennessee side of Fort Campbell?
Most families choose Tennessee — specifically Clarksville — because Tennessee has no state income tax on wages, strong school zones in the Rossview and Sango areas, and significantly more retail, dining, and amenities. The Kentucky side (Oak Grove, Hopkinsville) offers shorter commute times to several gates and often lower home prices, but Kentucky does tax wage income. For families where the spouse earns income, Tennessee residency can produce meaningful annual savings.
What is the best neighborhood near Fort Knox?
Elizabethtown is the most popular choice for Fort Knox families who want amenities, schools, and a housing market with appreciation history. Radcliff is the closest off-post community and has the heaviest military concentration. Vine Grove is the quietest and most rural option. Fort Knox BAH at most enlisted pay grades covers a full mortgage payment in Radcliff and large parts of Elizabethtown — homeownership is unusually accessible here compared to most Army posts.
Can I use a VA home loan near Fort Campbell or Fort Knox?
Yes — and both markets are well suited for it. VA loans require no down payment and no private mortgage insurance. At Fort Knox especially, BAH at most enlisted pay grades covers a full mortgage payment in Elizabethtown and Radcliff, which means many military buyers carry no out-of-pocket housing cost. To see your exact purchasing power at current VA loan rates, get your free VA Home Loan Snapshot.
What are the schools like near Fort Knox?
Hardin County Schools serves Elizabethtown, Radcliff, and Vine Grove. The district has considerable experience with military families and frequent enrollment transfers. Meade County Schools serves families in the Brandenburg and Vine Grove corridor. Both districts follow the Interstate Compact on Educational Opportunity for Military Children, which eases transfer credits, records requests, and sports eligibility across state lines.
What is the Blue Grass Army Depot and can civilians work there?
The Blue Grass Army Depot (BGAD) in Richmond, KY is a U.S. Army conventional munitions storage and management facility. BGAD completed its chemical weapons demilitarization mission in 2023. Civilian employment opportunities at BGAD do exist — the facility employs Army civilian personnel for logistics, quality assurance, and support roles. Visit the official BGAD website or USAJobs.gov for current openings.
Key Takeaways
- Two major installations: Fort Campbell (101st Airborne, 5th SFG, 160th SOAR — high deployment tempo) and Fort Knox (HRC, Cadet Command, Armor School — lower deployment tempo). Know which one you are going to before you plan your housing search.
- BAH goes far here: Both markets are affordable relative to BAH. Fort Knox in particular is one of the best duty stations in the country for VA loan homeownership — BAH at most enlisted pay grades covers a full mortgage payment in Elizabethtown and Radcliff.
- Kentucky exempts active duty military pay from state income tax. Your base pay, BAH, and BAS are fully protected. Fort Campbell families who live on the Tennessee side save even more — Tennessee taxes no earned income at all.
- Disabled veterans qualify for a property tax homestead exemption that reduces the assessed value of their Kentucky home before taxes are calculated. Apply through your county PVA using Form 62A350. No annual renewal required once granted.
- Fort Campbell families: build your support network before deployment. The 101st deploys. Plug into the PCS Pay It Forward® community and ACS before your soldier leaves — not after.
- Ready to buy? Get your free VA Home Loan Snapshot — it shows exactly what your BAH supports at current VA loan rates near either installation, takes 60 seconds, and requires no credit pull.
