About VA Disability Compensation
VA disability compensation is a tax-free monetary benefit paid to veterans who have injuries or diseases that occurred or were aggravated during active military service. The amount of compensation depends on your combined disability rating and number of dependents.
The Department of Veterans Affairs evaluates each service-connected condition and assigns a rating from 0% to 100% in 10% increments. These individual ratings are then combined using a specific formula known as "VA Math" to determine your overall combined rating.
VA disability compensation rates increased by 2.5% effective December 1, 2025, as part of the annual Cost-of-Living Adjustment (COLA). This increase applies to all VA disability ratings and special monthly compensation amounts.
How VA Math Works
VA Math is fundamentally different from regular arithmetic. Instead of simply adding your disability percentages together, the VA uses a "whole person theory" that considers your remaining healthy percentage.
The key principle: You can never be more than 100% disabled. Each subsequent disability is calculated against your remaining "healthy" percentage, not added to your total.
Combined Rating = 100 - [(100 - Rating1) x (100 - Rating2) x (100 - Rating3) ...]
Or think of it as:
Each rating reduces your remaining "healthy" percentage
Step-by-Step Example
Veteran has three disabilities: 70%, 50%, and 30%
- Start with 100% healthy
- First rating (70%): 100% - 70% = 30% remaining healthy
- Second rating (50%): 30% x 50% = 15% reduction → 30% - 15% = 15% remaining healthy
- Third rating (30%): 15% x 30% = 4.5% reduction → 15% - 4.5% = 10.5% remaining healthy
- Combined disability: 100% - 10.5% = 89.5%
- Rounded: 89.5% rounds to 90%
How to Use This Calculator
- Add your disabilities: Click "Add Another Disability" to add each service-connected condition
- Select ratings: Choose the percentage rating for each disability from the dropdown
- Add dependents: If your combined rating is 30% or higher, add spouse, children, and parents for additional compensation
- Calculate: Click the calculate button to see your combined rating and estimated monthly compensation
How is VA Disability Calculated?
The VA follows a specific process to determine your combined disability rating:
1. Order Disabilities by Severity
All individual ratings are arranged from highest to lowest percentage before combining.
2. Apply VA Math Sequentially
Starting with the highest rating, each subsequent rating is applied to the remaining "healthy" percentage, not added directly.
3. Round to Nearest 10%
The final combined percentage is rounded to the nearest 10%. Numbers ending in 5-9 round up; numbers ending in 1-4 round down.
- 64% rounds down to 60%
- 65% rounds up to 70%
- 74% rounds down to 70%
- 75% rounds up to 80%
The Bilateral Factor
When you have disabilities affecting paired extremities (both arms, both legs, or both eyes), the VA applies a 10% bilateral factor. This slightly increases your combined rating to account for the greater impact of bilateral disabilities.
The bilateral factor works by:
- Combining bilateral disabilities first using VA Math
- Adding 10% of that combined value
- Then combining with other non-bilateral disabilities
2026 VA Disability Rates
The 2026 VA disability compensation rates reflect a 2.5% Cost-of-Living Adjustment (COLA) effective December 1, 2025:
| Rating | Veteran Alone | With Spouse | With Spouse & 1 Child |
|---|---|---|---|
| 10% | $175.51 | N/A | N/A |
| 20% | $347.04 | N/A | N/A |
| 30% | $537.27 | $600.27 | $649.27 |
| 40% | $773.68 | $858.68 | $920.68 |
| 50% | $1,102.04 | $1,209.04 | $1,284.04 |
| 60% | $1,395.44 | $1,524.44 | $1,612.44 |
| 70% | $1,759.06 | $1,910.06 | $2,011.06 |
| 80% | $2,044.83 | $2,217.83 | $2,331.83 |
| 90% | $2,297.80 | $2,492.80 | $2,619.80 |
| 100% | $3,831.30 | $4,048.30 | $4,188.30 |
Dependent Benefits
Veterans with a combined rating of 30% or higher receive additional compensation for dependents:
- Spouse: Additional amount varies by rating (approximately $50-$220/month)
- Spouse receiving Aid & Attendance: Even higher additional amount
- Children under 18: Additional amount per child
- Children 18-23 in school: Higher additional amount for school-age children
- Dependent parents: Additional amount for each dependent parent
Dependent benefits only apply to veterans with a combined rating of 30% or higher. Veterans rated 10% or 20% receive the same payment regardless of dependents.
Total Disability Individual Unemployability (TDIU)
Veterans who are unable to maintain substantially gainful employment due to service-connected disabilities may qualify for TDIU, which pays at the 100% rate even if the combined rating is less than 100%.
TDIU Eligibility Requirements
- Schedular TDIU: One disability rated 60% or higher, OR multiple disabilities with combined rating of 70%+ and at least one at 40%+
- Extraschedular TDIU: For veterans who don't meet schedular requirements but can prove unemployability
Frequently Asked Questions
Why doesn't 70% + 50% equal 120%?
VA Math uses the "whole person theory" - you can't be more than 100% disabled. Each rating is applied to your remaining healthy percentage, not added directly. Two 50% ratings don't equal 100%; they equal 75% (rounded to 80%).
Is VA disability compensation taxable?
No. VA disability compensation is completely tax-free at both federal and state levels.
Can I receive VA disability and work?
Yes. You can work and receive VA disability compensation at any rating level, unless you're receiving TDIU benefits which have income limitations.
How do I appeal my rating?
You can file a Supplemental Claim with new evidence, request a Higher-Level Review, or appeal to the Board of Veterans' Appeals. Each pathway has different requirements and timelines.
When do disability payments arrive?
VA disability payments are typically deposited on the first business day of each month for the previous month's benefits.
Can my rating be reduced?
Yes, but there are protections. Ratings in place for 5+ years require sustained improvement, 10+ years require clear error, and 20+ years are considered permanent and cannot be reduced except for fraud.