As 2026 approaches, disabled veterans across Tennessee are preparing for changes that affect their financial well-being: the annual cost-of-living adjustment (COLA). This year’s adjustment, a 2.8% increase, is intended to help veterans maintain their purchasing power amid ongoing inflation and rising everyday expenses.

For Tennessee veterans and their families, the 2026 COLA increase represents more than a statistic. It’s a measure of respect for those who have served, ensuring their benefits continue to meet the realities of daily life.

This guide assists veterans in understanding the implications of the 2026 COLA, its impact on their benefits, and the steps they can take to ensure compensation accurately reflects their service and circumstances.

Highlights of the 2026 VA COLA Adjustment

The 2026 cost-of-living adjustment (COLA) is set at 2.8%, mirroring the increase for Social Security benefits. The Department of Veterans Affairs automatically applies this increase to service-connected disability payments, ensuring benefits rise with inflation.

For Tennessee veterans, the new rates take effect December 1, 2025, with the increased payments scheduled for January 2026. No action is necessary; the adjustment is automatic for all eligible recipients.

While 2.8% may seem modest, it ensures benefits remain aligned with inflation, preventing erosion in the real value of veterans’ monthly compensation.

Updated 2026 VA Disability Rates Reflecting the 2.8% Increase

The charts below outline 2026 VA Compensation Rates with a 2.8% COLA. These tax-free rates depend on disability rating and the number of dependents.

Table A: Veterans Without Children

Rating Veteran
Alone		 Veteran +
Spouse		 Veteran +
Spouse + 1 Parent		 Veteran +
Spouse + 2 Parents		 Veteran +
1 Parent		 Veteran +
2 Parents		 Aid & Attendance
(Spouse)
10% $180.42 — — — — — —
20% $356.66 — — — — — —
30% $552.47 $618.26 $670.69 $723.12 $604.90 $657.32 $59.62
40% $795.84 $883.22 $953.12 $1,023.02 $865.74 $935.64 $80.18
50% $1,132.90 $1,241.87 $1,329.25 $1,416.63 $1,220.28 $1,307.66 $100.74
60% $1,435.02 $1,566.60 $1,671.46 $1,776.31 $1,539.87 $1,644.73 $120.28
70% $1,808.45 $1,961.62 $2,084.98 $2,208.34 $1,931.81 $2,055.17 $140.84
80% $2,102.15 $2,276.91 $2,417.74 $2,558.58 $2,242.98 $2,383.82 $161.40
90% $2,362.30 $2,559.68 $2,717.99 $2,876.30 $2,520.61 $2,678.93 $180.93
100% $3,938.58 $4,158.17 $4,334.41 $4,510.65 $4,114.82 $4,291.06 $201.41

Table B: Veterans With Children

Rating Veteran +
Child Only		 Veteran +
Spouse + Child		 Veteran + Spouse +
1 Parent + Child		 Veteran + Spouse +
2 Parents + Child		 Veteran +
1 Parent + Child		 Veteran +
2 Parents + Child		 Additional Child
Under 18
30% $595.64 $666.58 $719.00 $771.43 $648.07 $700.50 +$31.87
40% $854.43 $947.98 $1,017.88 $1,087.79 $924.34 $994.24 +$43.18
50% $1,205.89 $1,323.08 $1,410.46 $1,497.84 $1,293.27 $1,380.65 +$54.48
60% $1,522.40 $1,663.23 $1,768.09 $1,872.94 $1,627.25 $1,732.11 +$64.76
70% $1,910.22 $2,074.70 $2,198.06 $2,321.42 $2,033.58 $2,156.94 +$76.07
80% $2,219.34 $2,406.43 $2,547.27 $2,688.11 $2,360.17 $2,501.01 +$86.35
90% $2,493.89 $2,704.63 $2,862.94 $3,021.25 $2,652.20 $2,810.51 +$97.66
100% $4,085.43 $4,318.99 $4,495.23 $4,671.47 $4,261.67 $4,437.91 +$109.11

Visual Overview: Monthly VA Disability Pay (Veteran Alone, 2026)

100% | ██████████████████████████████████████████ $3,938
 90% | ████████████████████████████████ $2,362
 80% | ██████████████████████████ $2,102
 70% | ██████████████████████ $1,808
 60% | ███████████████████ $1,435
 50% | ███████████████ $1,132
 40% | ████████████ $796
 30% | ████████ $552
 20% | ████ $357
 10% | ██ $180

(Each block represents approximately $100 for visual reference.)

This visual shows how the 2026 increase scales with disability ratings—for example, 100% now brings nearly $4,000 monthly, tax-free, for a single vet.

How COLA Impacts Special Monthly VA Benefits

The 2.8% increase applies to all Special Monthly Compensation (SMC) categories, including payments for veterans who are housebound, blind, or need aid and attendance. SMC adjustments can make a significant difference for those with severe disabilities or multiple service-connected conditions.

This COLA also applies to dependency and indemnity compensation (DIC) for surviving spouses and dependents, as well as clothing allowances.

Tennessee veterans should review their eligibility for SMC or other supplemental benefits—a higher level of compensation may be available if conditions worsen or circumstances change.

Expected Timeline for Receiving the 2026 COLA Payments

  • October 2025: The Social Security Administration announced the 2.8% COLA.
  • December 1, 2025: The VA applies the adjustment to all benefit categories.
  • January 2026: Veterans receive their first payment with the updated rates.

No additional application is needed—veterans should confirm the correct increase on their first 2026 statement.

What Veterans Can Do if the 2026 COLA Doesn’t Keep Up with Your Needs

Some veterans find expenses, especially for medical care or housing, rise faster than their income. Consider:

  1. Reevaluate Your Disability Rating: If your condition has worsened, you may qualify for an increased rating.
  2. Ensure All Dependents Are Reported: Dependent benefits can improve your compensation.
  3. Explore Additional VA Benefits: This includes SMC, VA pension, and healthcare benefits.
  4. Seek Legal Review: If payments seem incorrect or claims under-rated, consult a Tennessee veterans disability attorney to review your records.

Additional Concerns and Solutions Related to Cost-of-Living Adjustments

COLA’s impact varies based on location and circumstances. Veterans in Tennessee’s cities may face higher costs than those in rural areas.

Healthcare inflation remains a concern, as medical costs typically outpace general inflation. Veterans can offset this through VA healthcare, by checking eligibility for SMC, or using available VA financial counseling.

For more information about VA disability benefits or rating increases, see the VA Disability Benefits Overview.

2026 VA COLA FAQs: What Veterans Need to Know

Do I need to apply for the 2026 COLA? No. The increase is automatic for all current VA disability recipients.

When will I receive the increase? Payments with the 2.8% COLA arrive in early January 2026.

Does this apply to dependents and special benefits? Yes, it covers all VA disability, dependent, and special monthly compensation categories.

What if my payment didn’t increase? Check banking and dependent information with the VA, or contact your regional office if the issue remains.

Guidance and Support from the Law Office of Daniel Martin

The Law Office of Daniel Martin assists Tennessee veterans in understanding how COLA and rating changes impact disability compensation. Whether applying, appealing, or clarifying status, professional guidance ensures you receive the full benefits earned by your service.

By staying informed and proactive, Tennessee veterans can confidently navigate the 2026 COLA changes, ensuring their service is respected with fair and accurate financial support.