It is a number that as of May 2025, veterans who receive VA disability compensation can’t wait to see in 2026. The amount of the monthly disability payments are adjusted every year, through the Cost of Living Adjustment, or COLA.
It’s important to make this change, too, because it’s designed to make sure veterans’ benefits grow to match inflation or the increasing prices of goods and services so the value of their money doesn’t erode over time.
2026 VA Disability Rates Increase
The projected COLA for 2026 is 2.5 percent, based on data for the first part of 2025. This would be less than the increase over the last few years. For example, in 2025 veterans received a 2.5% increase. Prior to that, there was an 8.7 percent in 2023 and a 5.9 percent in 2022 COLA, the result of high inflation due to global economic challenges and the impact of the pandemic.
This article has covered how the COLA is determined, who and what the percentage is affected by, and seeing how a 2.5% increase might look for various disability ratings.
Cost of Living Adjustment in 2025
There is a particular formula for the Cost-of-Living Adjustment (COLA) involving the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). This index is a gauge of whether prices of everyday goods food, gas, housing, medical care and a lot more are rising or falling.
The cost-of-living adjustment is determined by the Social Security Administration (SSA) by examining Consumer Price Indicator for Workers (CPI-W) information from July, August, and September. When prices are increasing over those three months versus the year-ago period, benefits increase. If prices remain flat or fall, there could be no raise which was the case a few years this decade, in 2010 and 2016. The new rate will be effective on January 1, 2026, after the SSA announces the final COLA in October 2025.
An increase of 2.5% means that your monthly VA disability payments will increase 2.5%:
| Scenario | 2025 Benefit | 2026 Estimated Benefit | Annual Increase |
|---|---|---|---|
| Monthly benefit of $1,000 | $1,000/month | $1,023/month | $276 |
| Annual benefit of $3,000 | $3,000/year | $3,069/year | $69 |
| 100% disabled veteran monthly compensation | $3,737/month | $3,823/month | $1,032 |
| Monthly benefit of $3,000 (yearly increase) | $3,000/month | $3,000 + $828/year | $828 |
Just keep in mind that this increase will probably still feel minuscule relative to how much the cost of rent, utilities, groceries and especially health care are rising. That’s why knowing how COLA works and just being aware of the level of inflation, can empower you to make smarter choices about your savings, budgeting or seeking additional financial assistance when necessary.
Impact COLA increase will have on 2026 VA Disability Rates
Several developments could still influence the final COLA rate before it is officially announced:
Inflation Patterns – If inflation soars in the summer of 2025, the COLA could be over the 2.5% mark. In the other hand if the prices plateau or decrease, then the rate can be lower.
Economic Events – Any surprise actions like wars, supply shortages, oil price changes, or natural disasters may affect inflation.
Government Action – Acts of government such as tariffs or policies, particularly as they apply to international trade, may increase costs for consumers, and can impact CPI-W numbers.
Importance of 2026 VA Disability Rates Increase
COLA is of particular significance for veterans because so many receive disability compensation, which is often a fixed amount. If costs rise and payments don’t keep up, a dollar doesn’t stretch as far. Last year a loaf of bread may have cost $2, and this year it might go for $2.25. That can sound small, but over the long run, those differences have a way of adding up particularly for veterans who are on a tight budget or helping to support a family.
The monthly disability compensation that many veterans do receive is meant for things such rent, groceries, prescriptions, medical appointments and transportation. If COLA fails to keep pace with real-world inflation increasing health care or housing costs staying above water can be a major challenge. This is the reason why COLA is about so much more than a number it impacts the lives of millions of veterans and their families.
Things Veterans must Consider
- Stay Updated: Watch for the official COLA announcement in October 2025.
- Plan your Budget: As you will see, even a relatively small boost helps if you plan ahead.
- Get help if you need it: If you are struggling to navigate your benefits or if you are in a tough financial position, reach out to your local VA representative or veteran service officer (VSO) for assistance.
- Updates: VA.gov and SSA. gov will publish the final numbers.
FAQs
What is the VA disability rate increase in 2026 expected to be?
The estimate for the increase in VA disability for 2026 is 2.5 percent. That’s according to initial projections using inflation figures from the Consumer Price Index (CPI-W).
When will I see that 2026 increase in my payments?
If you receive VA disability compensation, you will see the new COLA rate in your January 2026 payment. COLA changes are normally announced in mid-October of the previous year.
Could the COLA be less than 2.5 percent, or even 0 percent?
Yes, it’s possible, even if the 2.5 percent estimate holds, the actual COLA could ultimately be lower even 0 percent.
