VA Disability Payments: What Veterans Could Receive in 2027

Starting next year, veterans who claim disability compensation benefits can expect an increase in their payments due to the annual cost-of-living adjustment, or COLA. The Department of Veterans Affairs will see a rise in 2027, benefiting approximately 6.3 million veterans who have acquired disabilities or long-term health conditions related to their service.

The COLA is an annual percentage increase that aims to maintain federal benefits' purchasing power by keeping up with inflation. It's calculated using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), reported monthly by the Bureau of Labor Statistics. The Social Security Administration compares the average CPI-W for the third quarter of the year to the same three months the previous year, determining the percentage increase.

If prices don't rise enough, there will be no COLA. Current COLA estimates for 2027 range between 3.5 percent and 3.6 percent. Veterans with a 10 percent or 20 percent disability rating receive a flat monthly amount, while those with higher ratings may be eligible for additional compensation based on their family circumstances. The VA publishes rate tables with various combinations of disability ratings and family situations.

A 3.5 percent COLA would result in varying increases for different benefit scenarios, ranging from about $40 to $151 per month. However, the actual VA disability payments can differ significantly from one veteran to another. The COLA for 2027 will be announced by the Social Security Administration in late October, and disability benefits will change in January 2027.