What it is: Tax-free monthly cash compensation paid to veterans whose current health conditions are connected to their military service. Governed by 38 CFR Part 4 (the Schedule for Rating Disabilities). The legal standard requires three things: (1) a current diagnosis, (2) an in-service event, injury, or exposure, and (3) a nexus — a medical link between the two.
How the math works (38 CFR §4.25, Combined Ratings Formula): The VA does not add ratings together. It uses a “whole person” method. Start at 100. Apply the highest rating first. A 50% rating leaves 50 remaining. A 30% rating applied to those 50 remaining points equals 15 more, bringing the combined to 65. The VA then rounds to the nearest 10, producing a 70% combined rating. The veteran with a 50% and a 30% rating does not receive an 80% combined rating — they receive a 70% combined rating. This is why understanding the formula matters before you file additional claims.
2026 Monthly Rates (single veteran, no dependents)
| Combined Rating | Monthly Payment (2026) |
|---|---|
| 100% | $3,938.58 |
| 90% | $2,362.30 |
| 80% | $2,102.15 |
| 70% | $1,808.45 |
| 60% | $1,435.02 |
| 50% | $1,132.90 |
| 40% | $795.84 |
| 30% | $552.47 |
| 20% | $356.66 |
| 10% | $180.42 |
Bilateral Factor (38 CFR §4.26): If you have a ratable disability in both arms or both legs, the VA applies a 10% increase to the combined bilateral ratings before folding them into the overall combined rating. This is one of the most commonly missed adjustments in the system.
Special Monthly Compensation (SMC): Veterans with the most severe service-connected conditions — loss of use of a limb, blindness, the need for aid and attendance — can receive SMC payments that exceed the 100% rate, ranging from roughly $4,500 to over $10,000 per month depending on the SMC level (SMC-K through SMC-S and beyond). These are not automatic — they must be claimed.