VA Disability Compensation Rates for 2025

2025 VA Disability Compensation Rates

VA disability compensation provides tax-free monthly payments to veterans with service-connected disabilities. The 2025 rates reflect a 2.5% cost-of-living adjustment (COLA), effective December 1, 2024. Understanding these rates and how they’re calculated helps veterans maximize their entitled benefits.

Monthly Compensation by Rating Percentage

VA disability ratings range from 0% to 100% in 10% increments. Here are the 2025 monthly rates for veterans without dependents:

• 10%: $175.51 per month
• 20%: $347.19 per month
• 30%: $537.62 per month
• 40%: $774.66 per month
• 50%: $1,102.81 per month
• 60%: $1,396.92 per month
• 70%: $1,760.73 per month
• 80%: $2,046.39 per month
• 90%: $2,299.23 per month
• 100%: $3,831.30 per month

Veterans rated at 30% or higher receive additional compensation for qualifying dependents, including spouses, children, and dependent parents.

How Combined Ratings Are Calculated

The VA uses “VA Math” to calculate combined ratings when a veteran has multiple service-connected conditions. Rather than simply adding percentages, the VA uses a combined ratings table that accounts for the whole person concept.

Here’s how it works: If you have a 50% rating and a 30% rating, the calculation starts with 50% disability. The remaining 50% of your “whole person” is then reduced by 30%, which equals 15%. Adding 50% + 15% gives you 65%, which rounds to 70% for payment purposes.

The VA always rounds combined ratings to the nearest 10%. A combined rating of 75% or higher rounds up to 80%, while 74% rounds down to 70%.

Additional Compensation for Dependents

Veterans with ratings of 30% or higher receive additional monthly amounts for dependents:

• Spouse (no children): $56.51 to $200.12 depending on rating
• Each child under 18: $31.00 to $107.38 depending on rating
• Each child over 18 in school: $100.00 to $347.41 depending on rating
• Each dependent parent: $47.82 to $164.42 depending on rating
• Aid and Attendance for spouse: Additional $62.92 to $188.68

Special Monthly Compensation (SMC)

SMC provides additional compensation beyond the standard rating schedule for veterans with severe disabilities. SMC levels range from SMC-K (loss of use of a creative organ) to SMC-T (assistance with activities of daily living).

Common SMC categories include:

• SMC-K: $135.19/month for loss of use of one hand, foot, or eye
• SMC-L: $4,823.92/month for need of regular aid and attendance
• SMC-S (Housebound): $4,542.69/month
• SMC-R1: $9,513.39/month for higher level of aid and attendance

Veterans can receive multiple SMC payments simultaneously, such as SMC-K in addition to other SMC levels.

Annual COLA Adjustments

VA disability rates increase annually based on the Social Security cost-of-living adjustment. The 2025 COLA of 2.5% took effect December 1, 2024, and appears in January 2025 payments. Veterans don’t need to take any action to receive COLA increases; they’re applied automatically.

Historical COLA adjustments have ranged from 0% (2010, 2011, 2016) to 8.7% (2023). These adjustments help ensure disability compensation keeps pace with inflation.

How to File or Appeal a VA Disability Claim

Veterans can file initial claims or appeals through several methods:

• VA.gov: File online through your eBenefits or VA.gov account
• Mail: Submit VA Form 21-526EZ to your regional office
• In Person: Visit your local VA regional office
• VSO Assistance: Work with an accredited Veterans Service Organization

For appeals, veterans have three options under the Appeals Modernization Act: Supplemental Claim (new evidence), Higher-Level Review (same evidence, different reviewer), or Board Appeal (Veterans Law Judge review).

Tax Treatment of VA Disability

VA disability compensation is completely tax-free at both federal and state levels. This makes the effective value of VA disability payments higher than equivalent taxable income. A veteran receiving $3,831.30 monthly (100% rating) receives the full amount without tax withholding.

Additionally, veterans with 100% disability ratings or those receiving compensation for specific conditions may qualify for property tax exemptions in many states. Check your state’s Department of Veterans Affairs for specific exemptions available to you.

Maximizing Your VA Benefits

To ensure you receive all entitled compensation, regularly review your disabilities with the VA and file for increases if conditions worsen. Secondary conditions caused by service-connected disabilities may also qualify for compensation. Working with an accredited VSO or VA-accredited attorney can help navigate the claims process and identify all conditions that may warrant compensation.