VA disability compensation is completely tax-free at both federal and state levels. You don't report it on your tax return.

Military retirement pay increase 2026: Military retirees will see a 2.8% increase in their 2026 retirement pay, matching the annual Cost-of-Living Adjustment applied to Social Security and VA ...

Military retirees and disabled veterans will receive 2.8% increases to their monthly paychecks for 2026, thanks to the annual Cost of Living Adjustment, or COLA, tied to inflation. The 2.8% raise for ...

The Department of Veterans Affairs (VA) pays out monthly benefits to millions of veterans who are disabled as a result of their active military service. This monthly tax-free payment is a lifeline for ...