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Disability Compensation 40%

Tax-free monthly compensation of $798/mo for your 40% service-connected disability rating.

Monthly $798/mo
Annual $9,581/yr
Tax status Tax-free

2026 VA Disability Rates

Monthly tax-free compensation based on combined disability rating. Rates effective December 1, 2025 (2.5% COLA increase).

Rating Monthly (Veteran Alone)
10%$180.73
20%$357.42
30%$554.08
40%$798.44
50%$1,136.92
60%$1,439.37
70%$1,814.09
80%$2,109.42
90%$2,370.28
100%$3,946.05

Source: 38 U.S.C. § 1114 — VA Disability Compensation Rates

Dependents (spouse, children, parents) add to base rate for ratings of 30% and above.

What the Law Guarantees

VA disability compensation is codified in 38 U.S.C. § 1114 and § 1110. Here's what they actually say:

§ 1110 — Basic Entitlement

Veterans are entitled to compensation for disability resulting from personal injury or disease contracted during active military service. The disability must be "service-connected" — meaning it was incurred or aggravated during service. Compensation is tax-free and paid monthly.

§ 1114 — Compensation Rates

The monthly rate is set by Congress based on your combined disability rating (10-100% in 10% increments). Rates are adjusted annually for cost of living (COLA). The 2026 rates reflect a 2.5% COLA increase effective December 1, 2025. At 100%, a veteran alone receives $3,946.05/mo ($47,352.60/yr).

§ 1115 — Additional Compensation for Dependents

Veterans rated 30% or higher receive additional compensation for dependents — spouse, children under 18, and dependent parents. The additional amounts increase with the disability rating. At 100%, a spouse adds $187.89/mo and each child adds $100.24/mo.

38 C.F.R. § 4.25 — Combined Ratings

If you have multiple service-connected conditions, they don't simply add up. The VA uses "VA math" — each condition is applied to the remaining non-disabled percentage. For example, a 50% and 30% rating combines to 65%, not 80%. The result is rounded to the nearest 10%.

Full text: Cornell Law — 38 U.S.C. § 1114

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