Military discounts are a great way for businesses to show appreciation for the service and sacrifices made by members of the armed forces. While there is no set standard for how much of a discount businesses should offer, some common practices have emerged.
What is Considered a Good Military Discount?
In general, most businesses offer military discounts in the range of 10-20% off goods or services. Some examples of good military discounts include:
- 15% off all purchases at Home Depot and Lowe’s
- 10% off orders at Target and Walmart
- 20% off phone plans from AT&T and Verizon Wireless
- 15% off flights on Delta Airlines
- 25% off Amtrak train tickets
Discounts closer to 20% tend to be more common for service-related businesses like hotels, car rentals, and restaurants. Retailers more often offer discounts in the 10-15% range.
Are There Any Standards for Military Discounts?
There are no legal requirements or regulated standards for how much of a discount businesses must provide to military personnel. The amount offered is entirely up to the discretion of each company.
However, many businesses do follow informal best practices, often offering discounts comparable to what competitors provide. This helps attract military customers while still retaining profitability.
Factors That Impact Discount Amounts
Several factors play a role in determining what businesses decide is a fair and reasonable military discount:
- Profit margins – Businesses with higher margins can more easily offer deeper discounts, while low-margin businesses need smaller discounts to stay profitable.
- Competitors’ pricing – Companies want to offer a discount that matches up well against key competitors.
- Frequency of use – Discounts for one-time purchases may be higher than those on recurring purchases.
- Negotiability of prices – Products or services with fixed standard pricing often get lower discounts.
- Availability of supplier discounts – The discounts suppliers give stores lowers the impact of customer discounts.
Do Military Discounts Vary by Business Type?
Yes, military discounts tend to vary based on the nature of the business offering them. Some general patterns include:
Business Type | Typical Discount |
---|---|
Hotels | 10-25% off room rates |
Car Rentals | Up to 25% off rental costs |
Restaurants | 10-20% off total bill |
Retail Stores | 10-15% off all purchases |
Movie Theaters | Free admission or discounted tickets |
Amusement Parks | Discounted admission ticket prices |
As shown, service industries like hotels and car rentals tend to offer some of the highest military discounts. Retailers provide more modest discounts in the 10-15% range. Overall the amount aims to balance value for military members with maintaining adequate profits.
Are Discounts Better Online or In-Store?
In general, military members can take advantage of military discounts both online and in retail store locations. However, there are some differences to note:
- Online discounts are typically easier to find and apply automatically at checkout.
- In-store discounts may require showing military ID or using a discount code.
- Online tends to have more discount variety due to lower overhead.
- In-store may have special promotional discounts or added member savings.
- Unique military offers are sometimes available only online or in-store.
Overall, online shopping will likely provide the most convenience and ability to reliably find military discounts. But checking in-store can occasionally yield some unique savings too.
Do Military Discounts Vary by Rank?
For the most part, military discounts apply equally regardless of rank or position within the armed forces. The majority of businesses simply offer a fixed discount to all active duty and retired military personnel, not making distinctions based on rank.
That said, there are occasional exceptions where higher ranked veterans may receive additional discounts or perks. Some examples include:
- Officer discounts at particular hotel chains or rental car companies.
- Free membership or VIP perks for former officers.
- Exclusive discounts for top ranking non-commissioned officers.
- Complimentary gifts or upgrades for upper management.
However, most military deals do not differentiate by rank. Discounts are more often based on military status rather than rank or position of authority.
Do Discounts Vary by Branch of Military?
For the most part, businesses provide military discounts uniformly across the 5 branches of the armed forces: Army, Navy, Air Force, Marines, and Coast Guard.
The eligibility criteria at most companies simply specify “active duty and retired military personnel.” All branches can take advantage of the savings. Some minor differences based on military branch include:
- Occasional free shipping offers for APO/FPO addresses used overseas.
- Special discounts for military spouses and family members.
- Bonus discounts for service members once deployed overseas.
- Limited exclusive discounts for veterans of certain branches.
But while small differences may exist, the vast majority of military discounts apply equally across all branches of service.
Do Discounts Vary by Military Status?
Military discounts are offered not just to active duty personnel but also to reservists, National Guard members, military retirees, veterans, and military spouses or family members. However, the amount of discounts can vary based on military status:
- Active duty – Gets the full discount amount at most businesses.
- Reservists & Guard – May get full or partial discount depending on company policy.
- Retired military – Typically receive the full active duty discount.
- Veterans – Discounts can vary but often get full active duty savings.
- Military spouses – Usually get the same military discounts but occasionally less.
Active duty personnel tend to get the best military discounts. honorably discharged veterans also usually receive similar savings. Policies are more mixed for reservists, Guard members, retirees, and spouses.
Are Bigger Discounts Offered on Major Holidays?
Some businesses do offer extra discounts for military around major holidays like Memorial Day, 4th of July, and Veterans Day. These increased savings serve as a holiday gift to honor their service and sacrifice.
Examples of boosted holiday military discounts include:
- An extra 5-10% off discounts Memorial Day weekend
- Special Veterans Day sales with 30-50% off
- Free meals on Veterans Day at participating restaurants
- Free stays at hotels around Independence Day
- Additional discount months for veterans around holiday times
These holiday discounts provide a way to thank military members for serving our country. Businesses want veterans to enjoy added savings around holidays celebrating freedom and patriotism.
Finding the Best Military Discounts
Here are some tips for military personnel and family members to maximize savings from military discounts:
- Look online for discounts from favorite brands and stores.
- Check discount posts on military family forums.
- Search for military discount codes before online checkout.
- Always ask about discounts when shopping in-store.
- Carry a military ID card to instantly prove eligibility.
- Take advantage of bigger holiday discounts when available.
- Stack discounts with other coupons, sales, and rewards programs.
Staying alert for military discounts, having proper identification, and combining savings opportunities allows veterans to maximize the value they receive from military appreciation discounts.
Are Military Discounts Taxable?
Military discounts provided by most businesses are considered tax-free savings for eligible customers. Because discounts directly reduce the amount paid, no taxes are calculated on the discounted portion.
However, there are some cases where military discounts may still be taxable:
- If the discount comes from redeeming reward points, taxes may apply.
- Discounts that reimburse money already spent can be deemed taxable income.
- Free or discounted products gifted for promotional purposes may need taxes.
- Discounts exceeding $600 from one company in a year could get a tax form.
Absent those exceptions though, most common everyday military discounts directly lower pre-tax prices so no additional taxes are owed.
Do Military Discounts Exist Outside the US?
Most military discounts are limited primarily to businesses operating within the United States. But some US-based companies do offer discounts globally, and foreign businesses sometimes provide military savings as well.
Examples of military discounts outside the US include:
- US restaurant chains offering discounts on overseas bases.
- Overseas branches of US rental car companies providing discounts.
- US hotels discounts applying abroad if booked domestically.
- Local discounts to NATO forces at restaurants near foreign bases.
- Special military appreciation events at embassies on holidays.
So while less common than within the US, military personnel stationed overseas can sometimes still take advantage of military discounts from familiar American brands, local foreign companies, or embassy-arranged events.
Conclusion
Military discounts offer a token of thanks and giveback to those who’ve served our country in uniform. Typical discounts range from 10-20% off, with service businesses on the higher end and retailers toward the lower end. While discounts do not formally vary by rank or branch, businesses tend to offer the best deals to active duty personnel around major patriotic holidays. Veterans and military family members can maximize savings by searching for deals online, asking in-store, and combining discounts. And while not as common globally, some military discounts apply overseas as well.