Last Updated: August 26, 2026 Reading Time: 8 min

The 2027 VA disability rates won't be official until October 14, 2026, but the formula that produces them is public, and two of the three months of data that feed it are already in. We ran the math. At the current 3.6% COLA projection, every rating tier moves up meaningfully, and the increase arrives completely tax-free.

Projected 2027 Rates: Veteran With No Dependents

These are FedTools projections computed from the 2026 rates we verified directly against va.gov on August 26, 2026. The math is simple enough to check yourself: 2026 rate × 1.036 for the current estimate, × 1.038 for the upper range.

Rating 2026 Rate Projected 2027 @ 3.6% Projected 2027 @ 3.8% Monthly Gain @ 3.6%
10% $180.42 $186.92 $187.28 +$6.50
20% $356.66 $369.50 $370.21 +$12.84
30% $552.47 $572.36 $573.46 +$19.89
40% $795.84 $824.49 $826.08 +$28.65
50% $1,132.90 $1,173.68 $1,175.95 +$40.78
60% $1,435.02 $1,486.68 $1,489.55 +$51.66
70% $1,808.45 $1,873.55 $1,877.17 +$65.10
80% $2,102.15 $2,177.83 $2,181.83 +$75.68
90% $2,362.30 $2,447.34 $2,451.87 +$85.04
100% $3,938.58 $4,080.37 $4,088.26 +$141.79

FedTools 2026 projection. 2026 base rates verified at va.gov August 26, 2026. Projected figures are not official; the final COLA is announced October 14, 2026.

Annualized, that's about $1,701 more per year at 100%, $781 at 70%, and $489 at 50%, using the 3.6% scenario.

Projected 2027 Rates: Veteran With Spouse

Rating 2026 Rate Projected 2027 @ 3.6% Monthly Gain
30% $617.47 $639.70 +$22.23
40% $882.84 $914.62 +$31.78
50% $1,241.90 $1,286.61 +$44.71
60% $1,566.02 $1,622.39 +$56.37
70% $1,961.45 $2,032.06 +$70.61
80% $2,277.15 $2,359.13 +$81.98
90% $2,559.30 $2,651.43 +$92.13
100% $4,158.17 $4,307.86 +$149.69

Veteran-with-spouse-only column, verified at va.gov. Rates with children or dependent parents scale the same way: multiply your current rate by 1.036.

A note on the projections you may see elsewhere: some sites are still running 3.9% tables built from spring estimates, and others use 3.8%. The projection has been falling as inflation data came in cooler: 3.9% in April, 3.8% through early summer, 3.6% after the July CPI-W release. We use the most current number and show the range so you can anchor honestly.

How the Number Gets Set (and Why It's Not Quite Automatic)

The VA COLA equals the Social Security COLA by law, through two layers:

  • 38 U.S.C. 5312 permanently links VA compensation increases to Social Security's.
  • A Veterans' Compensation COLA Act passes each year naming the effective date (December 1) and ordering VA to apply the Social Security percentage to the rate tables.

The Social Security side is mechanical: average CPI-W for July, August, and September 2026 versus the same quarter of 2025. July came in at 327.104, up 3.4% year over year. August data arrives September 11; September data arrives October 14, and the announcement follows the same day.

Strictly speaking, the annual act must pass for VA rates to move. In practice it has passed every year without exception, usually by unanimous consent. Treat the December 1 increase as certain; treat only the exact percentage as open.

CRDP, CRSC, and the Chapter 61 Exception

The competitor rate tables skip concurrent-receipt rules entirely, and those rules change the answer for a lot of retirees:

  • CRDP (20+ years, 50%+ rating): you receive full military retired pay and full VA compensation, and each gets its own COLA. Both streams rise by the same percentage in January 2027.
  • CRSC (combat-related): also COLA-adjusted annually, and tax-free like VA compensation.
  • Chapter 61 medical retirees under 20 years: the dollar-for-dollar VA offset still applies. A higher 2027 VA rate largely moves money from the DoD pocket to the VA pocket with no net gain, unless the disability qualifies for CRSC. The Major Richard Star Act would end this offset; see our CRDP/CRSC and Star Act status guide for where that bill stands.

The tax treatment amplifies the real value of the increase. VA compensation is exempt from federal income tax under 26 U.S.C. 104(a)(4). For a veteran in the 22% bracket, the $142 monthly increase at 100% is worth roughly $182 of pre-tax salary.

What to Watch Between Now and January

  • September 11, 2026: August CPI-W release. If it runs hot, the projection drifts toward 3.8%.
  • October 14, 2026: September CPI-W plus the official COLA announcement, same day.
  • December 1, 2026: New rates take effect.
  • January 2027: First payment at the new rate.

For the wider picture of how this same COLA hits FERS, CSRS, military retired pay, and Social Security differently, our five-systems COLA comparison breaks it down, and the military retiree COLA tracker follows the retired-pay side of the same announcement.

Calculate Your Combined Retirement Picture

VA disability rarely stands alone. Use our free Military Retirement Income Calculator to model retired pay, VA compensation, and the offset rules together and see your actual 2027 monthly picture. Try it now →

Frequently Asked Questions

What will 2027 VA disability rates be?

They're projected, not official. At the current 3.6% estimate, a 100%-rated veteran with no dependents would receive about $4,080 per month, up from $3,938.58. The official number arrives October 14, 2026, and takes effect December 1, 2026.

How is the VA disability COLA determined?

Congress passes a Veterans' Compensation COLA Act each year directing VA to match the Social Security COLA, which is computed from third-quarter CPI-W data against the prior year. The permanent link is 38 U.S.C. 5312. The annual act has never failed to pass.

Is VA disability compensation taxable?

No. It's exempt from federal income tax under 26 U.S.C. 104(a)(4), and most states follow the federal treatment. The full 2027 increase lands in your pocket.

When will the higher rates show up in my payment?

Rates take effect December 1, 2026, and the January 2027 payment is the first to reflect them.

How does the COLA interact with CRDP or CRSC?

CRDP recipients get the COLA on both retired pay and VA compensation independently. CRSC adjusts annually too. Chapter 61 retirees still under the offset see little net change unless CRSC applies.

Wasn't the projection higher earlier this year?

Yes: 3.9% in April, 3.8% by early summer, 3.6% after July's CPI-W. Two more monthly readings could still move the final number by a couple tenths in either direction.

Sources: VA compensation rates (verified August 26, 2026), TSCL COLA projection (August 12, 2026), BLS CPI-W July 2026, S.4487 Veterans' Compensation COLA Act, 38 U.S.C. 5312.