Veterans will see an increase in their monthly disability compensation next year, as the Department of Veterans Affairs (VA) has confirmed a 2.8% cost-of-living adjustment (COLA) for 2026.
Effective December 1, 2025, this increase ensures that veterans’ tax-free benefits continue to keep pace with inflation, preserving their purchasing power and helping offset the rising costs of essentials, from groceries to medical care.
This annual adjustment applies to VA disability compensation, Dependency and Indemnity Compensation (DIC) for surviving family members, and Special Monthly Compensation (SMC) for veterans with severe service-connected disabilities.
Overview: 2026 VA Disability Rate Adjustment
| Category | Details |
|---|---|
| Effective Date | December 1, 2025 |
| First Payment with New Rate | December 31, 2025 |
| COLA Increase | 2.8% |
| Applies To | VA Disability Compensation, DIC, TDIU, SMC |
| Tax Status | 100% Tax-Free |
| Authority | U.S. Department of Veterans Affairs |
| How It’s Calculated | Based on the Consumer Price Index for Urban Wage Earners (CPI-W) |
| No Action Required | Increases apply automatically to all eligible veterans |
| Official Website | www.va.gov |
How VA Disability Compensation Works?
VA disability compensation provides monthly, tax-free payments to veterans who were injured, became ill, or had pre-existing conditions worsened during active duty.
The amount of compensation depends on:
- The veteran’s disability rating (10%–100%),
- The number of dependents,
- And additional benefits such as Aid and Attendance (A&A) or Special Monthly Compensation (SMC).
Disability ratings are assigned in 10% increments, determined through VA medical evaluations, service records, and private medical documentation.
Veterans with multiple service-connected conditions receive a combined rating, calculated using a VA formula that accounts for the combined impact of all disabilities rather than simple addition.
Understanding the 2026 COLA Adjustment
On October 24, 2025, the Social Security Administration (SSA) officially announced a 2.8% cost-of-living adjustment for 2026. By law, VA disability benefits follow the same percentage increase to ensure parity between federal programs.
This means all veterans currently receiving VA disability compensation will automatically see their payments rise by 2.8% starting December 1, 2025.
“This increase may appear modest, but for veterans living on fixed incomes, every dollar makes a real difference,” said James Whitaker, a retired Army finance officer and veterans’ benefits advisor. “The COLA ensures that veterans’ benefits remain stable in real-world terms, even as costs rise.”
2026 VA Disability Pay Examples
The following are estimated 2026 monthly payment rates after the 2.8% COLA increase for veterans without dependents:
| Disability Rating | 2025 Monthly Rate | 2026 Monthly Rate | Monthly Increase |
|---|---|---|---|
| 10% | $175.51 | $180.42 | +$4.91 |
| 20% | $346.95 | $356.66 | +$9.71 |
| 30% | $537.42 | $552.47 | +$15.05 |
| 40% | $774.16 | $795.84 | +$21.68 |
| 50% | $1,102.04 | $1,132.90 | +$30.86 |
| 60% | $1,395.93 | $1,435.02 | +$39.09 |
| 70% | $1,759.19 | $1,808.45 | +$49.26 |
| 80% | $2,044.89 | $2,102.15 | +$57.26 |
| 90% | $2,297.96 | $2,362.30 | +$64.34 |
| 100% | $3,831.30 | $3,938.58 | +$107.28 |
Veterans with dependents will receive higher monthly amounts, based on family composition.
Dependent and Aid & Attendance Adjustments
A veteran’s compensation may increase depending on the presence of dependents (spouse, children, or dependent parents) and additional special benefits.
Example Calculation:
- Base rate (70%): $1,808.45
- With spouse: +$153.17
- With three children under 18: +($76 × 3) = +$228
- Spouse receiving Aid & Attendance: +$140.84
Total Monthly Payment: $2,330.46
For comparison, the same veteran in 2025 would have received $2,266.20, meaning the monthly increase for 2026 is $64.26.
“Even incremental increases like this help families keep pace with inflation in essentials like utilities, healthcare, and groceries,” noted Dr. Karen Holcomb, a financial planner specializing in veterans’ benefits. “When you consider these payments are tax-free, their impact is even more significant.”
How Veterans Can Verify Their New Rates?
Veterans do not need to reapply for the COLA increase it is automatic for all eligible beneficiaries.
You can verify your updated payment amount by:
- Logging into your VA.gov account,
- Checking your direct deposit statement (usually updated in December 2025), or
- Contacting the VA benefits hotline at 1-800-827-1000.
The first payment reflecting the 2026 increase will arrive on December 31, 2025, covering December benefits.
Eligibility
You may qualify for VA disability compensation if you:
- Have a service-connected disability incurred or worsened during military service,
- Were discharged under conditions other than dishonorable, and
- Have supporting medical and service documentation linking your condition to service.
Veterans who disagree with their rating or believe their condition has worsened can file for a rating increase or submit new medical evidence under the VA’s updated claims process.
2026 VA Payment Schedule Snapshot
| Benefit Month | Payment Date | Day |
|---|---|---|
| December 2025 | December 31, 2025 | Wednesday |
| January 2026 | January 30, 2026 | Friday |
| February 2026 | February 27, 2026 | Friday |
| March 2026 | April 1, 2026 | Wednesday |
| April 2026 | May 1, 2026 | Friday |
| May 2026 | June 1, 2026 | Monday |
| June 2026 | July 1, 2026 | Wednesday |
(Full schedule available at VA.gov/disability)
Final Thought
The confirmed 2.8% VA disability COLA increase for 2026 provides meaningful support to veterans and their families, helping offset inflation and maintain stability.
While the rise may not be dramatic, it represents a continued federal commitment to ensuring that service-connected veterans’ benefits keep pace with real-world costs.
“Each COLA increase reinforces our nation’s promise to its veterans,” said Lt. Col. Raymond Keane (Ret.), a veterans’ advocate. “Even small adjustments help preserve the dignity and independence of those who served.”
For the latest VA compensation rates and calculators, visit the official VA Disability Rates Page.
FAQs
What is the 2026 VA disability COLA increase?
The confirmed 2026 VA COLA is 2.8%, matching the Social Security cost-of-living adjustment.
When will veterans receive the first payment with the new rates?
The first payment reflecting the new rates will arrive December 31, 2025, covering benefits for December 2025.
Do veterans need to apply for the COLA increase?
No. The increase applies automatically to all eligible VA compensation payments.
Are VA disability payments taxable?
No. All VA disability compensation is 100% tax-free.
How is the COLA calculated each year?
It’s determined by the Consumer Price Index for Urban Wage Earners (CPI-W), comparing the average price change from July–September each year.
