VA benefits, military pay, housing allowances rise in 2026

At the beginning of 2026, the U.S. military saw an increase in pay and essential allowances, resulting in larger monthly payments for active-duty service members. Meanwhile, veterans, retirees, and survivors benefited from a distinct cost-of-living adjustment linked to inflation.

Effective January 1, all active-duty service members will see a 3.8% increase in their basic pay, representing a standardized raise across all ranks following the inconsistent adjustments made in 2025. In 2026, an entry-level enlisted service member at paygrade E-1 receives approximately $2,407 each month, whereas an E-6 with over a decade of service earns around $4,759 monthly. Officers are seeing an increase in their earnings, as newly commissioned officers begin their careers with a monthly salary of approximately $4,150, while O-4s with over ten years of service can expect to earn around $9,419.

As of early January, the Defense Finance and Accounting Service had not yet released the official pay tables for 2026. In previous years, legal restrictions limited pay increases for senior officers to ensure that compensation remained below the thresholds set for federal executives.

The increase in housing support was also noted. The Basic Allowance for Housing, which benefits approximately 1 million service members, has seen an average increase of 4.2% after a series of consecutive 5.4% raises in the preceding years. BAH is determined by evaluating local housing and utility expenses, with the expectation that service members will pay approximately 5% of those costs themselves. Rates differ significantly depending on the location, and although certain areas experienced reductions, service members currently assigned to those locations are permitted to keep their existing rate.

The Family Separation Allowance has been raised to $300 per month, up from $250, following the signing of the fiscal 2026 National Defense Authorization Act by Donald Trump in October. Service members who are separated from their families for 30 days or more due to deployments or similar assignments are eligible to receive this allowance.

Additionally, other allowances experienced an increase. The Dislocation Allowance has seen a 3.8% increase, aimed at partially offsetting the expenses associated with necessary relocations. Meanwhile, the Basic Allowance for Subsistence has risen approximately 2.4%, now standing at $476.95 per month for enlisted personnel and $328.48 for officers. Approximately 127,000 service members are set to receive Cost-of-Living Allowance payments while stationed in high-cost regions of California, Massachusetts, and New York.

The Social Security Administration has announced a 2.8% increase in veterans’ and survivors’ benefits under the annual cost-of-living adjustment, stating that this change “reflects changes in the cost of living.” The adjustment was implemented on December 1 and pertains to VA disability compensation, pensions, and survivor benefits overseen by the Department of Veterans Affairs.