Editor's note: This is the first installment of New Year, New You, a weeklong look at your financial health headed into 2026.
U.S. military service members anticipate increases to their pay and allowances in 2026, including a 3.8% raise in basic pay and an average 4.2% bump in Basic Allowance for Housing (BAH) rates, varying by location and other factors. Meanwhile, veterans, retirees and survivors receive a 2.8% increase to their benefits in 2026, based on the Social Security Administration's annual Cost-of-Living Adjustment, or COLA.
Here are some of the pays and allowances that U.S. service members and veterans may be entitled to receive in 2026.
2026 Military Basic Pay
Active service members will receive the same percentage increase in their basic pay in 2026, 3.8%, unlike in 2025 when most service members received a 4.5% raise but the junior enlisted received a larger increase.
The 3.8% raises kicked in Jan. 1. An enlisted service member with a paygrade of E-1 will receive about $2,407 per month in basic pay. Meanwhile, a more senior enlisted person with a paygrade of E-6, who has more than a decade of service, will earn about $4,759 monthly throughout 2026.
Officers receive more. A new officer's basic pay begins at about $4,150 in 2026, while a more senior officer with a paygrade of O-4, having served more than 10 years, will receive about $9,419 monthly.
The Defense Finance and Accounting Service hadn’t posted the official 2026 pay charts as of Jan. 5. In 2025, senior officers’ raise was limited by a statutory cap of $18,808.20 per month in basic pay to stay under the civilian Level 2 rate of $225,700 a year.
See our projected 2026 Military Pay Charts.
2026 Basic Allowance for Housing (BAH)
The average BAH is up 4.2% in 2026 following consecutive 5.4% increases. About a million service members receive the benefit. The new rates took effect Jan. 1.
The BAH calculation assumes service members will absorb 5% of their housing costs, meaning they will pay about $93 to $212 out of pocket in 2026, depending on their rank, their location and whether they have dependents. Local housing and utility costs determine BAH rates, so while most go up each year, some go down. In those areas, however, service members already living there can keep their existing rate.
Calculate your 2026 BAH rate here.
Increase in Family Separation Allowance
The fiscal 2026 National Defense Authorization Act, signed Oct. 18 by President Donald Trump, increases the Family Separation Allowance for service members involuntarily separated from their families for 30 days or more due to deployments, sea duty or other assignments.
The payment goes up from $250, the rate since 2002, to $300 per month. That's a 20% increase.
2026 Dislocation Allowance
The military's Dislocation Allowance (DLA) rates increased 3.8% in 2026. The DLA partially reimburses a service member for the expenses incurred in relocating during a permanent change of station (PCS), an evacuation or other housing moves ordered for the government's convenience. This allowance is in addition to all other allowances and may be paid in advance.
For 2026, DLA rates for an E-1 range from $1,018.96 without dependents and $2,361.00 with dependents; to $5,187.33 and $6,385.58 respectively for O-7 and higher.
Find your 2026 Dislocation Allowance rate.
2026 CONUS COLA
In addition to the BAH, some service members in areas with a particularly high cost of living -- costs that aren't limited just to housing -- receive the Continental United States Cost-of-Living Allowance (CONUS COLA).
All areas receiving the CONUS COLA in 2026 are in California, Massachusetts or New York. About 127,000 service members will receive a total of about $99 million in CONUS COLA payments in 2026, up from 61,000 receiving $51 million in 2025; and 17,000 receiving $26 million in 2024.
These are the 2026 military CONUS COLA rates.
2026 Basic Allowance for Subsistence (BAS)
Service members get a few more dollars a month for meals in 2026. The monthly Basic Allowance for Subsistence, or BAS, covers the cost of meals for service members only, not for their dependents.
The BAS rates are going up about 2.4% in 2026, from $465.77 to $476.95 a month for enlisted members; and from $320.78 to $328.48 for officers.
Read more about the 2026 Basic Allowance for Subsistence.
2.8% COLA for Veterans' and Survivors' Benefits
Several benefits for veterans and their survivors increase each year based on the Social Security Administration's annual Cost-of-Living Adjustment, or COLA (not an allowance like the CONUS COLA but instead an across-the-board percentage increase in payments). This includes the pay of military retirees.
The Department of Veterans Affairs' COLA-based increases take effect Dec. 1 of each year. The 2026 increase amounts to 2.8%. That's up from the 2025 COLA of 2.5% and down from 3.2% in 2024.
The following benefits received the 2.8% increase:
2026 VA Disability Pay
The tax-free payments are for veterans with at least a 10% disability rating from a service-connected physical or mental health condition. Rates range from $180.42 per month for a veteran with a 10% rating in 2026 to $4,671.47 per month for a 100% disabled veteran with a spouse, child and two dependent parents. Rates for additional children and spouses who require aid and attendance vary according to the veteran's disability rating.
See the 2026 VA Disability Pay rates.
2026 Special Monthly Compensation
Veterans receive the VA's Special Monthly Compensation benefit if they lost, or lost the use of, a limb or certain organs or extremities because of military service. Monthly rates range from $4,584.77 to $11,843.74 in 2026.
See the 2026 Special Monthly Compensation rate.
2026 Veterans Pension
Wartime veterans who are 65 or older, or permanently and totally disabled, and on a limited income may receive the VA's Veterans Pension, even if they don't have a known service-connected injury or illness. To receive it, the veteran must have served at least 90 days on active duty, with at least one day of it during wartime.
For 2026, a veteran or married couple must own less than $163,699 in assets for the veteran to qualify.
The Veterans Pension makes up the difference between the household income and a designated threshold, or income limit. For a single veteran with no dependents, the VA will pay the difference between the veteran's annual income and $17,441 in 2026; while the income limit for a veteran who needs aid and attendance and has one dependent is $34,488.
See the 2026 Veterans Pension rates.
2026 Survivors Pension
Certain survivors of deceased wartime veterans may also receive a pension, but the rates are lower, and the service requirement is higher. A deceased veteran must have served at least 24 months on active duty, with at least one day of it during wartime.
The VA will make up the difference between an unremarried surviving spouse's annual income, or that of an unmarried child, and $11,699 in 2026. The income limit is $22,304 a year for a surviving spouse who requires aid and attendance and also has a dependent.
Here are the 2026 Survivors Pension rates.
2026 VA Dependency and Indemnity Compensation (DIC)
Dependency and Indemnity Compensation (DIC) is a rate received by survivors of certain deceased veterans. In 2026, the base rate is $1,699.36 for a surviving spouse, with additional amounts for children, aid and attendance, transitional benefits for the first two years, and being married to their late veteran for eight years while the veteran was 100% disabled. For the first two years, a surviving spouse requiring aid and attendance who qualifies for the eight-year provision, with two children under 18, would receive $3,682.21 per month, according to the 2026 rates.
Find out more about VA Dependency and Indemnity Compensation.
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