Veterans receiving VA disability compensation will see their monthly payments rise by 2.8% in 2026, according to the official Cost-of-Living Adjustment (COLA) announced by the Social Security Administration (SSA) on October 24, 2025.
This increase slightly higher than last year’s 2.5% applies to more than five million U.S. veterans receiving disability compensation and nearly half a million surviving spouses and dependents who receive Dependency and Indemnity Compensation (DIC).
The change ensures that benefits keep up with inflation, protecting the purchasing power of veterans and their families amid rising living costs. The new rates go into effect December 1, 2025, and will appear in veterans’ January 2026 payments.
Overview of the 2026 VA COLA Increase
| Category | Details |
|---|---|
| Official COLA Percentage | 2.8% |
| Effective Date | December 1, 2025 |
| First Increased Payment | January 2026 (expected December 31, 2025, due to banking schedules) |
| Applies To | VA Disability Compensation, DIC, TDIU, and SMC benefits |
| Announcement Date | October 24, 2025 |
| Administered By | Department of Veterans Affairs (VA) |
| Linked Program | Social Security COLA |
| Legislation | Veterans’ Compensation Cost-of-Living Adjustment Act of 2024 |
| Calculation Basis | Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) |
| Automatic Adjustment | Yes – no action needed by veterans |
“COLA adjustments ensure veterans’ benefits retain their real value over time,” said James Whitaker, a VA policy specialist. “Even a modest 2.8% increase helps offset the cost of essentials like housing, groceries, and medical care.”
Why the COLA Adjustment Matters for Veterans?
The Cost-of-Living Adjustment is a yearly increase applied to both Social Security and VA benefits to reflect inflation. It ensures that veterans’ compensation continues to match the rising cost of everyday goods and services.
Without COLA, benefits would stagnate while expenses especially healthcare, fuel, and food continue to climb. This year’s 2.8% increase follows a 2.5% rise in 2025 and an average inflation rate near 2.6%, keeping most veterans’ benefits in line with national cost trends.
2026 VA Disability Compensation Rates (Veteran With No Dependents)
The following chart shows the estimated monthly compensation for 2026, reflecting the 2.8% COLA increase. Official rates will be confirmed by the Department of Veterans Affairs later this year.
| VA Disability Rating | 2026 Monthly Compensation | Monthly Increase |
|---|---|---|
| 10% | $180.42 | +$4.91 |
| 20% | $356.66 | +$9.71 |
| 30% | $552.47 | +$15.05 |
| 40% | $795.84 | +$21.68 |
| 50% | $1,132.90 | +$30.86 |
| 60% | $1,435.02 | +$39.09 |
| 70% | $1,808.45 | +$49.26 |
| 80% | $2,102.15 | +$57.26 |
| 90% | $2,362.30 | +$64.34 |
| 100% (or TDIU) | $3,938.58 | +$107.28 |
For 90% disabled veterans, this means an increase of about $64 per month or roughly $770 more per year in tax-free income.
“The COLA increase isn’t dramatic, but for many veterans, it helps cover rising rent, gas, and medication costs,” explains Lydia Brooks, a veterans’ financial counselor. “Every dollar counts when you’re living on a fixed income.”
Dependents and DIC Payments
For Families and Survivors
Spouses and dependents receiving Dependency and Indemnity Compensation (DIC) will also benefit from the 2.8% COLA adjustment.
| Category | 2025 Monthly Rate | 2026 Monthly Rate (Est.) | Increase |
|---|---|---|---|
| Surviving Spouse (Base DIC) | $1,653.07 | $1,699.36 | +$46.29 |
Dependents of Disabled Veterans
Veterans with spouses, children, or dependent parents will see additional allowances on top of their base disability pay, automatically adjusted to reflect the 2.8% COLA.
When Veterans Will See the 2026 Increase?
The 2.8% COLA takes effect December 1, 2025, but veterans will first see the increase reflected in their January 2026 payment, typically deposited on December 31, 2025.
Because VA payments are issued on the first business day of the month, the deposit arrives earlier when that day falls on a weekend or federal holiday.
Key date to remember:
First payment at new 2026 rates — December 31, 2025
How the 2026 COLA Was Calculated?
The VA uses the same formula as the Social Security Administration to determine the yearly adjustment, based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
The government compares the average CPI-W for July, August, and September 2025 with the same months from 2024. The percentage difference determines the COLA rate for the following year.
In this case:
- Q3 2024 CPI-W: 308.729
- Q3 2025 CPI-W: 317.265
- Increase: 2.80%
How the Increase Affects 90% Disability Veterans?
For veterans rated at 90% disability, the new monthly rate of $2,362.30 reflects a $64 increase from the 2025 rate. This change benefits those with long-term service-connected disabilities who rely on VA compensation as a major source of income.
If you also receive TDIU (Total Disability Individual Unemployability), your compensation equals the 100% rate, meaning you’ll receive the same $107 monthly boost as fully disabled veterans.
VA COLA and Other Federal Benefits
- Social Security Benefits:
The VA COLA mirrors the 2.8% increase in Social Security benefits, meaning veterans receiving both benefits will see increases in both checks though they may appear on different dates. - Military Retirement Pay:
Retired service members receiving Concurrent Retirement and Disability Pay (CRDP) or Combat-Related Special Compensation (CRSC) will also receive the same percentage increase. - Dependency and Indemnity Compensation (DIC):
Surviving spouses and dependents will automatically receive the 2.8% adjustment in their monthly DIC payments.
What To Do If You Don’t See the Increase?
If your January 2026 payment does not reflect the new rate, take these steps:
- Wait 2–3 business days for bank processing delays.
- Verify your payment history at VA.gov.
- Confirm your disability rating is current.
- Contact the VA at 1-800-827-1000 for assistance.
Most payment discrepancies are due to banking information changes or recent dependent updates not yet processed.
Additional Ways to Maximize VA Benefits
If your expenses continue to rise faster than COLA adjustments, you may be eligible for additional compensation or benefits, such as:
- Aid & Attendance (A&A) for veterans needing daily care
- Housebound Benefits for those confined to their homes
- Clothing Allowance for prosthetic or adaptive equipment
- Vocational Rehabilitation (VR&E) and education programs
- State-level property tax exemptions and veteran grants
These programs can significantly increase financial stability, especially for disabled veterans on fixed incomes.
Final Thought
The 2.8% VA COLA increase for 2026 offers steady, reliable support for veterans and their families especially those living with 90% disability ratings.
While the boost may not fully offset rising costs in areas like healthcare and housing, it represents an ongoing federal commitment to safeguard veterans’ financial stability.
“The annual COLA may not make anyone rich,” said Dr. Robert Hensley, a former VA economist, “but it’s a lifeline that ensures our veterans’ hard-earned benefits never lose value to inflation.”
Veterans can stay updated on benefit rates, payment dates, and dependent changes by visiting VA.gov or contacting the Veterans Benefits Administration directly.
FAQs
What is the VA COLA for 2026?
The 2026 Cost-of-Living Adjustment is 2.8%, based on the CPI-W index used by the Social Security Administration.
When will I see the increased payment?
You’ll receive the higher payment on December 31, 2025, covering your January 2026 benefits.
Does the increase apply to TDIU, SMC, and DIC?
Yes. All forms of VA compensation and survivor benefits receive the same 2.8% increase.
Do I need to apply for the COLA increase?
No. The adjustment is automatic for all eligible VA beneficiaries.
What should I do if my payment doesn’t change?
Check your VA account online or call 1-800-827-1000. Payment discrepancies are often resolved quickly.