2.8% COLA · 2026Priority Group 2Last verified: DEC 1, 2026

40% VA Disability Rating

A 40% VA disability rating pays $795.84/month ($9,550.08/year) in 2026, tax-free, to a veteran without dependents. The rate is set by 38 CFR § 3.4 and adjusted annually for COLA. At 40%, veterans unlock 14 federal benefits, including Service-Connected Status, VA Healthcare (Priority Group 5), VA Home Loan Eligibility.

40% VA disability — quick facts (2026)

Monthly rate: $795.84
Annual: $9,550.08
With family: $1,087.79
TDIU eligible?: Not yet
COLA increase: 2.8%
Benefits unlocked: 14

30% Rating

$552.47

per month

Current — 40%

$795.84

$9,550.08/year

50% Rating

$1,132.90

+$337.06/mo increase

How much does a 40% rating pay with dependents?

Situation	Monthly	Annual
Veteran alone	$795.84	$9,550.08
With spouse	$882.84	$10,594.08
Spouse + 1 child	$947.84	$11,374.08
Spouse + 2 children	$1,087.79	$13,053.48
Each additional child: +$38.11/mo (no spouse) · +$65/mo (with spouse)

What benefits do I get at 40% VA disability?

14 benefits available at your rating level (cumulative from 0%)

Service-Connected Status

Since 0%

Official recognition of disability related to military service — required for all other VA benefits

VA Healthcare (Priority Group 5)

Since 0%

Enrollment in VA healthcare system. Priority Group 5 — may require copays depending on income

VA Home Loan Eligibility

Since 0%

VA-backed mortgage with no down payment, no PMI. Funding fee still applies at 0%

Monthly Compensation

Since 10%

Tax-free monthly disability compensation begins at 10%

VA Home Loan Funding Fee Waiver

Since 10%

Funding fee completely waived on VA home loans — saves $4,000-$12,000+ on a typical mortgage

VA Healthcare (Priority Group 3)

Since 10%

Upgraded to Priority Group 3 — no copays for SC conditions, reduced copays for non-SC care

VR&E Chapter 31

Since 10%

Vocational Rehabilitation & Employment — job training, education, resume help. Requires employment handicap assessment

State Property Tax Benefits

Since 10%

Many states begin property tax exemptions at 10% — varies significantly by state

VR&E Serious Employment Handicap

Since 20%

At 20%+, eligible for VR&E with serious employment handicap — expanded program access and longer entitlement

Dependent Compensation

Since 30%

Additional monthly payment for spouse, children, and dependent parents. Amount increases with each rating level above 30%

VA Healthcare (Priority Group 2)

Since 30%

Upgraded to Priority Group 2 — essentially no wait for enrollment, minimal copays

VA Dental (SC Conditions)

Since 30%

Dental care for conditions directly related to service-connected disability

Auto/Adaptive Equipment Grant

New at 40%

If disability involves loss or loss of use of a limb — up to $22,541 (2026) for adaptive vehicle equipment

TDIU Pathway (Combined)

New at 40%

With a combined rating of 70%+ and at least one condition at 40%, may qualify for TDIU — paid at 100% rate

At 50% you unlock VA Healthcare (Priority Group 1), State Benefits Expansion. That's +$337.06/mo more in compensation.

Can I qualify for TDIU at a 40% rating?

Not Yet Eligible

Not yet eligible for TDIU as a single condition. Need combined 70%+ with one condition at 40%+ for combined TDIU, or a single condition at 60%+.

How do combined VA disability ratings work?

The VA uses the "whole person theory" — each rating applies to the remaining healthy percentage, not the total. The result is always less than the arithmetic sum, then rounded to the nearest 10% under 38 CFR § 4.25.

“Disabilities will be evaluated on a combined rating from 0 to 100 percent, as provided in the rating schedule, by using the combined ratings table and rounding to the nearest 10 percent.”
— 38 CFR § 4.25 (Combined Ratings Table)

Single condition at 40%

30% + 20% = 44% → rounds to 40%

30% + 10% + 10% = 43% → rounds to 40%

What conditions are commonly rated at 40%?

20 conditions have a 40% rating tier in the VA Schedule for Rating Disabilities (VASRD)

Addison's disease (adrenocortical insufficiency)

DC 7911

Three crises during the past year, or; five or more episodes during the past year

Anatomical loss of one eye: 1

DC 6063

In the other eye 20/40 (6/12)

Angioneurotic edema

DC 7118

Attacks without laryngeal involvement lasting one to seven days or longer and occurring more than eight times a year, or; attacks with laryngeal involvement of any duration occurring more than twice a...

Ankle, ankylosis of

DC 5270

In plantar flexion at more than 40°, or in dorsiflexion at more than 10° or with abduction, adduction, inversion or eversion deformity

Ankle replacement (prosthesis).

DC 5056

With chronic residuals consisting of severe painful motion or weakness

Ankylosing spondylitis

DC 5240

Unfavorable ankylosis of the entire cervical spine; or, forward flexion of the thoracolumbar spine 30 degrees or less; or, favorable ankylosis of the entire thoracolumbar spine

Ano, fistula in, including anorectal fistula and anorectal abscess

DC 7335

One or two simultaneous fistulas, with abscess, drainage, and pain

Arm, limitation of motion of

DC 5201

Flexion and/or abduction limited to 25° from side; 30

Arteriovenous fistula, traumatic

DC 7113

Upper extremity

Avitaminosis

DC 6313

With stomatitis, diarrhea, and symmetrical dermatitis

Bladder, Injury of (Residuals)

DC 7517

Bladder injury residuals: Voiding dysfunction requiring 3 or more urinations per hour; moderate stress incontinence requiring use of 2 or more absorbent pads per day; or persistent urinary retention r...

Bones, of the lower extremity, shortening of

DC 5275

3 to 3⁄inches (7.6 cms. to 8.9 cms.) 1 2

Burn scar(s) or scar(s) due to other causes, not of the head, face, or neck, that are associated with underlying soft tissue damage

DC 7801

Area or areas of 144 square inches (929 sq. cm.) or greater

Choroidopathy, including uveitis, iritis, cyclitis, or choroiditis

DC 6000

With documented incapacitating episodes requiring at least 5 but less than 7 treatment visits for an eye condition during the past 12 months

Chronic Cystitis (Urinary Frequency/Incontinence)

DC 7512

Urinary frequency: Daytime voiding interval less than one hour, or; awakening to void five or more times per night. OR voiding dysfunction requiring the wearing of absorbent materials which must be ch...

Chronic fatigue syndrome (CFS)

DC 6354

Which are nearly constant and restrict routine daily activities from 50 to 75 percent of the pre-illness level; or which wax and wane, resulting in periods of incapacitation of at least four but less ...

Chronic liver disease without cirrhosis

DC 7345

Progressive chronic liver disease requiring continuous medication and causing minor weight loss and at least two of the following: (1) daily fatigue, (2) malaise, (3) anorexia, (4) hepatomegaly, (5) p...

Degenerative arthritis, degenerative disc disease other than intervertebral disc syndrome (also, see either DC 5003 or 5010)

DC 5242

Unfavorable ankylosis of the entire cervical spine; or, forward flexion of the thoracolumbar spine 30 degrees or less; or, favorable ankylosis of the entire thoracolumbar spine

Detachment of retina

DC 6008

With documented incapacitating episodes requiring at least 5 but less than 7 treatment visits for an eye condition during the past 12 months

Diabetes mellitus

DC 7913

Requiring one or more daily injection of insulin, restricted diet, and regulation of activities

Frequently Asked Questions

How much does a 40% VA disability rating pay per month in 2026?

A 40% VA disability rating pays $795.84/month ($9,550.08/year) for a veteran without dependents in 2026. This amount is tax-free under 26 U.S.C. § 104.

Is VA disability compensation taxable?

No. VA disability compensation is fully tax-free under 26 U.S.C. § 104(a)(4). It is excluded from gross income and does not need to be reported on federal or state tax returns. Military retirement pay is separate and may be taxable.

What benefits do I get at 40%?

At 40%, you are eligible for 14 cumulative federal benefits, including Service-Connected Status, VA Healthcare (Priority Group 5), VA Home Loan Eligibility. Benefits unlock cumulatively — every benefit available at lower ratings also applies at 40%.

How much does VA disability pay with a spouse and children at 40%?

At 40%, a veteran with a spouse receives $882.84/month. Adding one child raises the rate to $947.84/month. Dependent allowances begin at 30% under 38 CFR § 3.4.

Can I qualify for TDIU at 40%?

Not yet eligible for TDIU as a single condition. Need combined 70%+ with one condition at 40%+ for combined TDIU, or a single condition at 60%+.

What is the difference between a 40% and a 50% VA disability rating?

A 50% rating pays $1,132.90/month — $337.06/month more than the 40% rate. That difference compounds to $4,044.72/year. At 50%, you also unlock VA Healthcare (Priority Group 1), State Benefits Expansion.

How do combined VA disability ratings work?

The VA does not add ratings together. Instead, it applies the "whole person" theory: each successive disability is calculated against the remaining healthy percentage. For example, 50% leaves 50% whole; a second 30% rating is 30% of 50% (15%), producing a combined 65%, which rounds to 70% under 38 CFR § 4.25. This means the combined rating is always less than the arithmetic sum.

When does COLA increase VA disability rates?

VA disability rates are adjusted annually based on the Social Security Administration's Cost-of-Living Adjustment (COLA). The 2026 rates reflect a 2.8% COLA increase, effective 2025-12-01. COLA changes are applied automatically — no action is needed.

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