Veterans receiving disability benefits are expected to receive a 3.6% cost of living adjustment (COLA) in 2027.
Following the Social Security Administration’s COLA increase this week, the Department of Veterans Affairs (VA) is expected to increase veterans’ disability compensation by the same 3.6 percent. More than 6 million veterans who currently receive disability compensation from the VA will benefit from this increase next year.
Each year, Congress must pass the Veterans’ Compensation Cost of Living Adjustment Act before the VA can make this increase official. The law ties VA disability benefits to the Social Security COLA so that beneficiaries can keep pace with inflation.
Now that the SSA has released the 3.6% COLA increase for 2027, the legislation must pass before the VA can make the increase official for beneficiaries. But veterans can still use the confirmed COLA to estimate how their payments will change.
Learn more: How to find your 2027 Social Security COLA
Here’s what to know about the 2027 COLA and how VA disability benefits will be affected:
What is the COLA for 2027?
The SSA announced Oct. 14 that its 2027 COLA for beneficiaries is 3.6% – the largest increase in four years. The COLA amount is based on the Consumer Price Index for Urban Workers (CPI-W) averages for July, August, and September 2026, compared to the same months in 2025.
If Congress approves it, the 3.6 percent COLA that Social Security recipients receive would also apply to VA disability compensation.
VA disability benefits are tax-free and eligible veterans receive them monthly. Veterans may qualify based on mental or physical conditions developed before, during or after their military service. This may include conditions that arose after service, for example, or existing conditions that were made worse by their service.
Specifically, the COLA increase applies to War Disability Compensation, Dependent Compensation, Clothing Allowances for eligible disabled veterans, and Dependency and Indemnity Compensation (DIC) for surviving spouses and children.
How much will the COLA increase VA benefits in 2027?
The VA has not released compensation benefit rate tables for 2027, but beneficiaries can use the current rate tables to estimate their COLA increase for the new year.
The monthly payment that eligible veterans will actually receive in 2027 depends on the specific benefits they are eligible for.
For example, consider a veteran with a 10% disability rating who currently receives $180.42 in disability compensation. This monthly payment will increase by $6.50 ($180.42 x 0.036) in 2027, for a new monthly total of $186.92.
The higher a veteran’s disability compensation, the greater the impact of the COLA increase will be.
For example, a veteran with an 80% disability rating, who also has a child and a spouse, currently receives $2,406.15 per month. In 2027, this monthly payment will increase by $86.62 ($2,406.15 x 0.036) for a new total of $2,492.77.
Beyond the amounts listed in the VA’s rate table, a family’s total VA disability award may also be affected by additional amounts they may be entitled to. This includes additional children or support and care benefits that spouses may receive.
What should you do now?
For veterans receiving disability compensation, there is no action to take at this time.
The 3.6% COLA increase will be automatically applied to monthly payments throughout 2027. You do not need to file a new claim to receive it.
The Veterans Compensation Cost of Living Adjustment Act of 2026 – which will finalize the VA compensation adjustment – has already been introduced in Congress, although it is still awaiting passage. Once it is final, the VA will update its current compensation rate tables and you will be able to see exactly how your monthly payment is affected based on your disability rating and your dependents.
The new rate is expected to take effect Dec. 1, 2026, but depending on payment dates, veterans likely won’t see the increased amount of their disability compensation until Dec. 31 or even January.
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