The Department of Veterans Affairs has finalized the annual adjustments for compensation benefits, bringing significant news for those at the 60% disability threshold. As inflation continues to impact the daily cost of living, these updates serve as a vital financial anchor for veterans. For the 2026 calendar year, the cost-of-living adjustment (COLA) has been confirmed at 2.8%, a figure that directly mirrors the Social Security Administration’s annual increase.1 This change ensures that the purchasing power of your benefits remains stable despite fluctuating market prices for essentials like housing, food, and healthcare.
Understanding the 2.8% COLA for 2026
The 2026 increase is a result of the Consumer Price Index (CPI-W) data collected during the third quarter of 2025. By federal law, VA disability benefits must rise in tandem with Social Security payments. While the 2.8% hike is a moderate jump compared to the record-breaking 8.7% seen in 2023, it is higher than the 2.5% increase applied in 2025.4 For a veteran rated at 60%, this means a monthly boost that can help cover rising utility bills or insurance premiums. The adjustment is applied automatically; veterans do not need to file additional paperwork to receive the new rate.
2026 Monthly Payment Rates for 60% Disability
When a veteran reaches the 60% disability rating, the VA begins to factor in dependency status, which can significantly alter the monthly take-home amount.5 Unlike lower ratings (10% and 20%) where the payment is a flat fee regardless of family size, the 60% bracket offers additional tiers for spouses, children, and dependent parents.6 Below is a detailed breakdown of the official 2026 rates for a veteran with a 60% disability rating under various common dependency scenarios.
| Dependency Status | Monthly Payment (2025) | New 2026 Monthly Rate |
| Veteran Alone | $1,395.93 | $1,435.02 |
| Veteran & Spouse | $1,523.37 | $1,566.02 |
| Veteran, Spouse, & 1 Child | $1,617.72 | $1,663.02 |
| Veteran & 1 Child (No Spouse) | $1,481.54 | $1,523.02 |
| Veteran & 1 Parent | $1,498.07 | $1,540.02 |
| Veteran, Spouse, & 2 Parents | $1,727.65 | $1,776.02 |
Additional Benefits for Dependents
Beyond the base rates shown in the table, the VA provides specific “add-ons” for larger families or special circumstances.7 If you have more than one child under the age of 18, the 2026 rate allows for an additional $65.00 per month for each subsequent child.8 Furthermore, if you have a child over the age of 18 who is enrolled in a qualifying school program, the monthly addition is $211.00.9 Another important factor is the “Aid and Attendance” allowance for spouses.10 If your spouse requires assistance with daily living activities, you can receive an extra $121.00 per month on top of your standard 60% disability payment.
Effective Dates and First Payment Schedule
It is important to understand the timing of these increases to avoid confusion during the transition into the new year. While the 2026 rates are technically “effective” as of December 1, 2025, the VA pays for the previous month’s benefits in arrears. This means the first check reflecting the 2.8% increase will arrive in bank accounts on December 31, 2025.11 Because January 1 is a federal holiday, the VA moves the payment date up to the last business day of the preceding month.12 For the remainder of 2026, payments will typically fall on the first of each month unless that day lands on a weekend.
How to Calculate Your Total Increase
To figure out your exact monthly gain, you can multiply your current 2025 monthly benefit by 0.028. For a single veteran at 60%, the increase is approximately $39.09 per month.14 Over the course of a full year, this adds nearly $470 to your household income. While this might seem like a modest change, it is cumulative. These annual adjustments are designed to prevent your benefits from being eroded by the rising costs of goods and services over decades of retirement or disability.
Maximizing Your Rating and Benefits
If you find that your current 60% rating no longer reflects the severity of your service-connected conditions, or if you have new secondary conditions, it may be time to file for an increase. A jump from 60% to 70% results in a significantly larger payment increase than the COLA alone can provide. For example, a single veteran at 70% will receive $1,808.45 in 2026—a difference of over $370 monthly compared to the 60% rate.15 Always ensure your dependency records are up to date with the VA, as failing to report a new child or a marriage can leave money on the table.
Frequently Asked Questions (FAQs)
1. Do I need to apply for the 2026 COLA increase?
No, the 2.8% increase is applied automatically to all VA disability compensation payments.16 You will see the change reflected in your end-of-December 2025 payment.
2. Is VA disability pay taxable at the 60% level?
No, VA disability compensation is considered a tax-free benefit at all percentage levels (10% through 100%) and does not need to be reported as income on federal or state tax returns.17
3. Will the increase affect my eligibility for other benefits?
Generally, no. Since the COLA is designed to keep pace with inflation rather than increase your “real” wealth, it typically does not disqualify you from other income-based VA or state programs.
Disclaimer
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