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If you’re a veteran with a 40 percent VA disability rating, you’re likely eligible for more benefits than you think.
This post reveals and explains what benefits are available to you with a 40% VA rating—and how to go beyond 40% to unlock even more tax-free compensation and life-enhancing benefits for you and your family!
Table of Contents
Summary of Key Points
- 40 percent VA disability pay provides monthly tax-free compensation starting at $774.16 for veterans without dependents.
- You may qualify for additional benefits such as property tax exemptions, VA healthcare, travel reimbursement, and more.
- If you can’t work due to your service-connected conditions, you may be eligible for TDIU, which pays at the 100% rate.
- Veterans with a 40% VA rating can often increase their rating through higher ratings for existing conditions or secondary service connections.
How Much is 40% VA Disability Pay?
As of 2025, VA disability pay rates, 40% VA disability pay starts at $774.16 per month for a single veteran with no dependents.
Current VA Disability Compensation Amount
For the current VA disability pay rates or to estimate your potential VA compensation increase, use our VA Disability Calculator HERE.
How many veterans have a 40% VA rating?
According to VBA data reported to Congress, 5.9% of disabled veterans, or 354,802 out of 5,992,967, currently have a 40% VA disability rating.
List of 40% VA Disability Benefits
- Tax-free monthly VA disability compensation
- Special Monthly Compensation (SMC) for specific severe impairments
- Access to VA healthcare and prescriptions
- Travel reimbursement for VA medical appointments
- State-based property tax exemptions
- VA home loan funding fee waiver
- Eligibility for Vocational Rehabilitation & Employment (VR&E)
- Additional compensation for eligible dependents
- Potential eligibility for TDIU (Total Disability based on Individual Unemployability) if schedular or extraschedular criteria are met
- Veteran-friendly banking via VA Benefits Banking Program
- Dependent education support via Chapter 35 (DEA)
- Nonprofit scholarships (e.g., Folds of Honor)
- Access to CHAMPVA (with TDIU P&T)
- Free VA dental care (in certain TDIU cases)
- Burial allowances and national cemetery benefits
- 10-point preference in federal hiring
- Direct hire authority for specific federal positions
- Commissary and military exchange access
- Access to MWR (Morale, Welfare, and Recreation) programs
- Hunting and fishing license waivers in many states
The 20 BEST 40 Percent VA Disability Benefits—Explained!
1. Tax-Free Monthly VA Disability Compensation
Your base payment from the VA, tax-free and paid monthly, determined by your combined disability rating.
See also: VA disability pay rates chart
2. Additional VA Disability Compensation for Dependents
Extra monthly pay if you have a spouse, children, or dependent parents.
See also: Who qualifies as a VA dependent?
3. Special Monthly Compensation (SMC)
Additional pay for severe disabilities (e.g., loss of limb, need for personal care). See SMC Rates HERE.
4. VA Healthcare and Prescription Coverage
Free or low-cost medical care and prescription coverage for service-connected disabilities. Learn more
5. VA Travel Reimbursement
Reimbursement for travel to approved VA medical appointments.
See related: The Veterans Travel Pay Guide
6. State Property Tax Exemptions
Many states offer reduced or waived property taxes for disabled veterans. (Program varies by state.) View your specific state veteran tax benefits HERE or visit the VA news page HERE.
7. VA Home Loan Funding Fee Waiver
Veterans with a rating of 10% or higher are exempt from the VA loan funding fee. See the VA Buyers Guide HERE.
8. Veteran Readiness and Employment (VR&E)
Education and employment services for veterans with service-connected disabilities that limit their work.
See also: Veteran Readiness and Employment (VR&E) Pay Chart
9. Total Disability Based on Individual Unemployability (TDIU)
TDIU allows veterans who can’t work due to service-connected conditions to be paid at the 100% rate.
10. VA Benefits Banking Program
The Veterans Benefits Banking Program (VBBP) offers secure, direct deposit for your benefits through veteran-trusted banking partners.
11. Dependent Education Assistance (DEA)
Chapter 35 educational benefits for children or spouses of veterans who are permanently and totally disabled. Learn how to apply HERE.
12. Nonprofit Scholarships (e.g., Folds of Honor)
Educational scholarships for spouses and children of disabled veterans (non-VA benefit but trusted).
See related: Scholarships for Dependents of Disabled Veterans
13. CHAMPVA Health Coverage
Healthcare program for dependents of permanently and totally disabled veterans (with TDIU). Learn more
14. VA Dental Care (if qualified)
Dental care eligibility is limited but possible for certain TDIU or service-connected conditions.
See also: Does the VA Cover Dental?
15. Burial Allowances and National Cemetery Benefits
Free burial in national cemeteries, headstones, and possible reimbursements for funeral expenses. Learn more
16. 10-Point Veterans Preference in Federal Hiring
Extra points added to competitive federal job applications for disabled veterans. Learn more about Veterans Preference Points HERE.
See also: Veterans Preference Points: What they are and why they matter
17. Direct Hire Authority for Veterans
Bypasses the competitive hiring process for qualified disabled veterans in select roles. Learn More
18. Commissary and Military Exchange Access
Disabled veterans with a VA health ID card can shop on base and online exchanges. Learn More
19. Access to MWR (Morale, Welfare, and Recreation)
Reduced-price lodging, activities, and travel deals via military bases and MWR programs. Learn More
20. Hunting and Fishing License Waivers (by state)
Free or discounted licenses are available in most states for veterans with a VA disability rating.
See More: Fishing License by State and Hunting License by State
Additional 40% VA Disability Benefits
Many states offer valuable benefits for veterans with a 40% VA disability rating, including:
- Tax exemptions for homeowners
- Veteran housing programs (i.e., nursing facilities, assisted living, retirement communities)
- Discounted or free tuition at local universities
- DAV vehicle registration/license plate discounts
- Free admission to state parks
- Discounts on hunting and fishing licenses
See also: Veteran Benefits by State
4 Ways to Increase Your 40% VA Disability Rating
Veterans can often increase their VA rating by:
- Submitting a VA Increase Claim
If your service-connected disability has worsened, you can submit a VA increase claim with updated medical evidence, such as a current DBQ (disability benefits questionnaire), that accurately documents your current frequency, severity, and duration of symptoms. This may qualify you for a higher VA rating for an existing condition.
- Filing for Secondary Service-Connected Conditions
Many VA disabilities cause or aggravate other secondary conditions. Filing for conditions secondary to a primary service-connected disability can significantly increase your overall combined VA rating.
- Filing a Mental Health VA Claim
Mental health conditions such as anxiety, depression, or PTSD are among the most highly rated but often underreported.
- Qualifying for Total Disability Based on Individual Unemployability (TDIU)
If your condition prevents you from maintaining substantially gainful employment, you may be entitled to 100% compensation under TDIU—even if your combined rating is less than 100%.
Deserve a Higher VA Rating?
At VA Claims Insider, we specialize in educating veterans legally, ethically, and medically to increase their VA rating. Our education-based Elite program is built by veterans, for veterans.
If you’re underrated, frustrated, or overwhelmed, you’re not alone—and you don’t have to navigate the VA claims process by yourself.
See also: Raising VA Disability Ratings: 6 BEST Ways to Get an Increase!
Final Thoughts
A 40% VA disability rating is more than just a number—it’s a milestone that opens the door to critical benefits for you and your family. But it doesn’t have to be the final stop.
Many veterans stay stuck at 40% when they could—and should—be rated much higher.
Whether you’re dealing with worsening symptoms, undiagnosed secondary conditions, or confusion about your options, the most important step is taking action.
VA Claims Insider provides education-based resources and expert-level support to legally increase your rating. You earned these benefits through your service. Let’s make sure you get every one of them.
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Author
Eric Webb
Eric has written and worked in the field of Veterans Disability since 2020 and enjoys writing educational content for the veteran population. His prior work has been published in the Official Journal of the American College of Sports Medicine (ACSM). He holds a Degree in Health and Exercise Science.
