At Tabak Law, we are here to support veterans who have made sacrifices for our country. We ensure that they receive the benefits they deserve. As we approach 2026, the Department of Veterans Affairs (VA) will be implementing changes to disability compensation rates, which will impact monthly payments for disabled veterans. It is important for veterans in Milwaukee and across the country to understand these changes in order to ensure their financial stability.
How VA Disability Compensation Rates Are Determined
VA disability compensation is a tax-free financial benefit paid to qualified veterans who have sustained or worsened injuries, illnesses, or conditions while serving in the military. The amount of compensation a veteran receives is based on a formula that takes into account various factors established by the U.S. Department of Veterans Affairs.
1. Disability Rating (10% to 100%)
The basis of VA compensation is the disability rating, which indicates the severity of service-related conditions. Ratings range from 10% to 100%, in increments of 10%. This is based on medical evidence, VA exams and the VA Schedule for Rating Disabilities. Each condition is assessed for its impact on a veteran’s physical and mental ability to function and their ability to maintain employment.
For veterans with multiple service-related disabilities, a unique VA formula is used to calculate a combined rating rather than simply adding up individual ratings. This formula considers the cumulative effect of all conditions. For example, a veteran with a rating of 50% and a rating of another condition of 30%, would not get 80%. Their combined rating would be 65%.
A 100% disability rating may be awarded to veterans who have service-connected disabilities that prevent them from working or performing daily activities. In some cases, even if the combined ratings of the disabilities are less than 100%, veterans may still qualify for total disability benefits based on individual unemployability.
2. Dependents and Additional Allowances
The VA provides additional financial assistance to veterans with dependents, recognizing the increased financial responsibilities of supporting a family. This extra support is automatically added to the base compensation rate for qualifying dependents, which includes:
- Spouse
- Children
- Dependent Parents
- Special Circumstances
Veterans must notify the government of any changes in their dependency status, such as marriage, the birth of a child or divorce, in order to ensure that they receive accurate and timely benefits.
3. Cost-of-Living Adjustments
To help maintain the purchasing power of disability benefits amid inflation, the VA adjusts disability compensation annually through a Cost-of-Living Adjustment (COLA). These increases are based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), calculated by the Social Security Administration (SSA).
In 2026, disability rates are expected to increase in line with the SSA’s announced COLA, projected to rise due to inflation. While the exact percentage increase will not be known until late 2025, veterans can expect a modest to moderate increase in monthly payments to reflect changes in the cost of living based on historical trends.
These adjustments help ensure that benefits keep pace with economic changes and provide meaningful support to veterans.
Key Changes in 2026 VA Disability Compensation
1. Expected Increase Due to Inflation
The 2026 VA disability rates are likely to see a 3-5% increase, similar to the social security adjustment. This means that a veteran with a 100% disability and no dependents could receive $3,800 or more per month (up from $3,737 in 2014). Veterans with a partial disability rating (for example, 50%) may receive an additional $50-$100 per month.
2. Special Monthly Compensation (SMC) Adjustments
Veterans with severe disabilities, such as loss of limbs or blindness, may be eligible for SMC, which provides higher benefits. The 2026 rates will reflect cost-of-living adjustments (COLA), ensuring that veterans with extreme challenges receive adequate support.
3. Dependency Allowances
Veterans who are supporting spouses, children, or elderly parents will see an increase in their additional benefits. For example, the spousal and child allowances could rise by $50-$75 per month, and parents’ dependency allowances may increase for veterans supporting aging parents.
Legal Considerations for Milwaukee Veterans
If your condition has worsened since your last evaluation, you may qualify for a higher disability rating before the 2026 adjustment. The VA frequently underestimates conditions such as:
- Post-Traumatic Stress Disorder (PTSD) and Mental Health Disorders
- Chronic Pain and Mobility Issues
- Respiratory and Heart Conditions
A skilled VA disability attorney can assist you in gathering medical evidence and filing a strong appeal.
How Tabak Law Can Help You Secure Maximum Benefits
At Tabak Law, we are dedicated to helping veterans receive every penny they deserve through our expert legal support during the VA claims process. Our team of experienced professionals assists with disability claims and appeals, ensuring that all necessary documentation and medical evidence is in place to ensure the highest possible rating. We specialize in overturning denied claims, challenging unfair VA decisions, and advocating for veterans who have been underestimated or overlooked.
With the 2026 VA disability compensation changes, higher payouts will be available for disabled veterans. However, securing these benefits requires legal expertise. Whether it’s filing a new claim, appealing a denial, or seeking a higher rating, Tabak Law is here to assist.