Aerarium Militare

Aerarium Militare was the Military Treasury instituted by Augustus to collect the Receipts of the Inheritance Tax and Sales Tax.
These Taxes then paid for the Legionaries Pensions.

The building was located on the Capitoline Hill.
The Office was run by three Prefects, the Praefectii Aerarii Militaris, who were appointed by the Emperor for three years.

Augustus set up this Pension Fund with 170,000,000 Sesterces from his private wealth. As this was insufficient he instituted two new Taxes.
- A Tax on Sales at Auction: ‘Centesima rerum venalium’:
  - Specifically collected to fund military pensions.
- An Inheritance Tax: ‘Vicesima Hereditatium’:
  - Fixed at 5% begun under Augustus (except gifts to children and spouses), which was also collected by the Aerarium Militare. Exemptions were made for the immediate family members who inherited or Estates below a certain value.

Donativium:
- A Gift from the Emperor to the Legions, usually on Accession. The Praetorian Guard war frequently granted Donativium, to buy their loyalty in times of crisis.
Praemium:
- A Lump Sum on Retirement when Discharged after 20 years Service under Augustus:
  - Legionary:
    - 12,000 sesterces. It was approximately thirteen times his annual salary. It was later doubled under Caracalla (198-217 CE) to 20,000 sesterces.
  - Praetorian Legionary:
    - 20,000 sesterces. Possibly also doubled under Caracalla but not confirmed.
- If there was no cash to pay the lump sum, the Legionary would have his term of service extended until he could be paid.

Capitoline Hill