We are getting PCS'd to Germany. Can you tell me if we will be paying Federal/State and Local income tax on our wages earned while we are there?...might be a silly question, but I'm new at this whole process. Thank you.

Here is a document on the site to start with. Federal taxes are required to be paid by all US employees overseas.

http://www.military.com/Finance/content/0,15356,85041,00.html

State taxes are much more complex - each state has different rules on taxable income (if they tax it) and military exemptions. This is based on your official state of residence. Most local taxes are based on where you work or live, so that should not be an issue.