Millions of U.S. veterans and their families will see a much-needed boost to their monthly budgets next year. The Department of Veterans Affairs (VA) has confirmed a 2.8% Cost-of-Living Adjustment (COLA) for 2026, aligning with the latest Social Security increase.
The new rates take effect December 1, 2025, and the higher payments will appear in January 2026 checks. For veterans receiving a 100% disability rating, that translates to nearly $100 more per month, depending on dependents.
“The COLA is a lifeline,” said a retired Army staff sergeant. “Without it, every year would feel like we’re falling behind.”
Also Read
Social Security Announces 2.8% COLA Increase for 2026 — Full Details, Tax Changes, and Payment Schedule
2026 VA COLA Increase: Overview
| Agency | U.S. Department of Veterans Affairs (VA) |
| Policy | 2026 Cost-of-Living Adjustment (COLA) |
| Increase | 2.8 percent |
| Effective Date | December 1, 2025 |
| First Payment Month | January 2026 |
| Applies To | Disability Compensation & Dependency Allowances |
| Basis | CPI-W (Consumer Price Index for Urban Wage Earners & Clerical Workers) |
Why the 2026 COLA Matters?
The annual COLA ensures VA disability benefits keep pace with inflation by using the same CPI-W formula applied to Social Security. As living costs rise for food, housing, transportation, and utilities, this adjustment helps preserve veterans’ purchasing power.
2026 VA Disability Pay Rates
The table below reflects the new 2026 monthly disability compensation effective December 1, 2025 (rounded to the nearest cent).
| Disability Rating | 2025 Monthly Rate | 2026 Rate (+2.8%) | Approx. Increase |
|---|---|---|---|
| 10% | $171.23 | $176.02 | +$4.79 |
| 20% | $338.49 | $347.96 | +$9.47 |
| 30% | $524.31 | $538.99 | +$14.68 |
| 40% | $755.28 | $776.43 | +$21.15 |
| 50% | $1,075.16 | $1,105.26 | +$30.10 |
| 60% | $1,361.88 | $1,400.02 | +$38.14 |
| 70% | $1,716.28 | $1,764.33 | +$48.05 |
| 80% | $1,995.01 | $2,050.92 | +$55.91 |
| 90% | $2,241.91 | $2,304.67 | +$62.76 |
| 100% | $3,831.30 | $3,934.74 | +$103.44 |
Dependency Allowance Adjustments
Additional compensation is available for qualified dependents:
- Spouse
- Children under 18 or in college
- Dependent parents
| Dependency Status | 2025 Monthly (100%) | 2026 (+2.8%) |
|---|---|---|
| Veteran w/ Spouse Only | $4,181.82 | $4,298.91 |
| Veteran w/ Spouse & One Child | $4,399.67 | $4,522.87 |
| Veteran w/ Spouse & Two Children | $4,597.67 | $4,726.41 |
| Add’l Child (Under 18) | +$97.00 | +$99.72 |
| Add’l Child (Over 18, in School) | +$324.00 | +$333.07 |
| Each Dependent Parent | +$192.00 | +$197.38 |
All VA disability compensation is tax-free, so the full 2.8 percent raise goes directly to veterans.
Key Takeaways
- COLA 2026 = 2.8 percent, identical to Social Security’s adjustment.
- Applies to VA disability, dependency and indemnity compensation (DIC).
- Effective December 1, 2025; visible in January 2026 payments.
- No application needed — the increase is automatic.
How COLA is Calculated?
| Metric | Source | Time Frame Used |
|---|---|---|
| CPI-W (Consumer Price Index for Urban Wage Earners & Clerical Workers) | U.S. Bureau of Labor Statistics (BLS) | July – September 2025 compared to same months in 2024 |
| Legal Authority | Public Law 117-82 (Veterans’ Compensation Cost-of-Living Adjustment Act) | Requires VA to match Social Security COLA |
The VA uses the third-quarter CPI-W average to determine its annual adjustment, ensuring both veterans and Social Security beneficiaries receive identical percentage increases.
FAQs
When will veterans see the new rates?
In the January 2026 payment reflecting benefits earned in December 2025.
Do I need to apply for the COLA increase?
No — it is automatic for all eligible veterans and dependents.
Does the COLA apply to DIC beneficiaries?
Yes, Dependency and Indemnity Compensation (DIC) recipients receive the same 2.8 percent increase.
Is VA disability compensation taxable?
No — VA disability benefits are completely tax-free at the federal level.
Will the COLA rate change again before December?
No — 2.8 percent is final for 2026, based on the official CPI-W release.
Where can I find the official rates?
Visit the VA’s official benefits page at www.va.gov/disability/compensation-rates/veteran-rates.
Final Words
The 2026 COLA increase reaffirms the VA’s commitment to protecting veterans’ purchasing power. While 2.8 percent may not fully offset rising living costs, it offers essential relief to those who served.
“This adjustment keeps our promise to veterans,” the VA said in a statement. “It ensures that their benefits reflect the economic realities of today and honor their sacrifice.”
For millions of veterans nationwide, that means a stronger financial foundation in 2026 — and a bit more breathing room where it counts most.
