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VA disability · one rating

40% VA disability rating: amounts and the gap to 50%

What 40% pays each family in 2026, what a 40% condition does for an unemployability claim, and why retirees feel the difference between 40 and 50.

What 40% pays your family each month

Monthly compensation at 40%

$947.84

Per year, tax free$11,374
Veteran alone$795.84
Added for your dependents$152
Combine several ratings →

A 40% VA disability rating pays $795.84 a month in 2026 to a veteran alone, $882.84 with a spouse and $947.84 with a spouse and a child, at the rates effective December 1, 2025. The number 40 has two roles beyond the payment. In the individual unemployability test of 38 CFR 4.16(a), a veteran with several conditions needs one of them rated at least 40% and a combined 70%. And for a military retiree with 20 years, 40% is the last step where VA compensation is still taken back from retired pay dollar for dollar: with $2,600 of retired pay, the total at 40% stays $2,600, while at 50% CRDP lets both run in full, $3,732.90. For a retiree, the step from 40% to 50% is worth far more than the rate chart says.

Checked by Radif Partners · Editorial policy · How we calculate

What 40% pays in 2026

VA compensation at 40%, rates effective December 1, 2025.
FamilyPer monthAdded over 30%
Veteran alone$795.84$243.37
Married$882.84$265.37
Married, 1 child$947.84$281.37
Married, 2 children$990.84$292.37
Single parent, 1 child$853.84$257.37

Combinations that give 40%

Combined values from 38 CFR 4.25 Table I.
RatingsCombined valueRating
40% alone4040%
30% and 20%4440%
30%, 10% and 10%4340%
20%, 20% and 10%4240%
20% and 20%3640%

A 40% rating covers combined values from 35 to 44, and where you sit in that band decides what the next claim does. Starting from a single 40%, any new 10% rating gives 46, which rounds up to 50%. Starting from 30%, 10% and 10% (a value of 43), the same new 10% gives 49. Starting from 20% and 20% (36), it gives 42. The calculator shows the exact combined value so that you know how far you are from the next line.

Retirees: the dollar-for-dollar zone

Military retired pay and VA compensation cannot be paid in full together unless a law allows it. Below 50%, none does for longevity retirees: VA pays its amount and DFAS reduces retired pay by the same amount. The money is not lost, it changes nature, from taxable retired pay to tax-free compensation. At 50% and above with 20 years, Concurrent Retirement and Disability Pay ends the deduction. A retiree at 40% who has a pending claim for a further condition should therefore look at the combined value rather than the rating: the CRDP calculator shows both totals, and CRSC covers combat-related disabilities at any rating.

The 50% page shows the amounts on the other side of the line, and the VA disability calculator combines your own ratings.

A 40% condition as the anchor of an unemployability claim

For a veteran with several conditions, the schedular TDIU test needs two things at once: a combined 70% and one disability at 40% or more. The table shows how much the anchor matters.

Combined with 38 CFR 4.25; test of 38 CFR 4.16(a).
RatingsCombinedOne at 40%+Schedular TDIU
40%, 30%, 20%66 → 70%yesmet
40%, 40%64 → 60%yesnot met
30%, 30%, 30%, 20%73 → 70%nonot met
50%, 20%, 10%64 → 60%yesnot met
40%, 30%, 10%, 10%66 → 70%yesmet

The third line is the trap: four ratings that reach a combined 70% without any of them at 40%. Such a veteran does not meet the schedular test, though the rule that counts disabilities of the same limb or from the same accident as one can sometimes create the 40% anchor, for example a knee and an ankle on the same leg. The TDIU guide explains that rule.

The tax side of the waiver

For a retiree below 50%, the waiver is not a loss but a swap. Take $2,600 of gross retired pay and a 40% rating: DFAS pays $1,804.16 of retired pay and VA pays $795.84 of compensation. The total is unchanged, but the VA part is free of federal income tax, which lowers the tax withheld from retired pay. With a spouse, the VA part is larger, $882.84, so more of the total escapes tax. Survivor Benefit Plan premiums are still computed on the gross retired pay chosen as the base amount, not on what remains after the waiver.

Questions veterans and service members ask

Does a retiree get both retired pay and VA pay at 40%?

Not in full. Below a 50% combined rating, the VA amount, $795.84 a month at 40% without dependents, is deducted from retired pay through the VA waiver. The gain is tax: that part becomes tax free. If some disabilities are combat-related, CRSC can restore part of the retired pay at any rating from 10%. CRDP begins at 50% with 20 years of service.

What is the VA pay at 40% with a spouse and three kids?

$1,033.84 a month in 2026, if all three children are on your award: the basic rate for a spouse and a child, $947.84, plus two extra children at $43 each. If one of them is 18 to 23 and in an approved school, that child is paid $140 instead.

Why does a 40% condition matter for TDIU?

Because 38 CFR 4.16(a) allows individual unemployability for a veteran with two or more disabilities only if one of them is rated at least 40% and the combined rating reaches 70%. A combined 70% made only of 30% and smaller ratings does not meet the schedular test, although VA can still refer the case for extraschedular review.

How much more does 50% pay than 40% for a veteran alone?

In 2026, $337.06 a month: $795.84 at 40% against $1,132.90 at 50%. For a married veteran with one child the gap is $375.06. For a military retiree with 20 years, the real gain is larger, because CRDP starts at 50% and stops the deduction of VA pay from retired pay.

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Estimate only: the figures on this page apply the tables and formulas published by VA, DFAS, the DTMO, the IRS and OPM to the numbers you enter. Your rating decision, your LES and your retiree account statement are what count.

VA, DFAS, DTMO, IRS and OPM figures for 2026, read on the official documents on