No, there are no income limits for veteran’s receiving VA disability compensation benefits.
VA disability compensation is designed to provide monetary compensation to disabled veterans for the average impairment of earning capacity in civilian careers due to service-connected disabilities.
This compensation is tax-free at the federal and state level and ranges from $0 to over $4,000 per month, depending on the veteran’s combined disability rating from 0% to 100% and number of eligible dependents.
While income is not a factor for standard VA disability benefits, it is considered for veterans receiving compensation through Individual Unemployability (IU), VA pension benefits, or VA aid and attendance.
Table of Contents
Summary of Key Points
- No Income Limits: There are no income limits for veterans receiving VA disability compensation benefits.
- Purpose of VA Disability: VA disability compensation is designed to provide tax-free monetary benefits to disabled veterans for the average impairment of earnings capacity in civilian careers due to service-connected disabilities, with payments ranging from $0 to over $4,000 per month.
- Disability Rating System: The VA uses a rating system from 0% to 100%, in increments of 10%, to evaluate the severity of the disability, with compensation starting at a 10% rating and additional benefits for eligible dependents starting at 30%.
- Income Considerations for Other Benefits: While income is not a factor for standard VA disability benefits, it is considered for veterans receiving compensation through Individual Unemployability (IU), VA pension benefits, or VA aid & attendance benefits, all of which have specific income limits and eligibility criteria.
Understanding VA Disability Compensation
VA disability compensation is a monetary benefit paid to veterans who have disabilities resulting from injuries or diseases that were incurred or aggravated during active military service or are proximately due to or aggravated by other service-connected disabilities.
The VA disability compensation schedule is designed to reflect the loss of civilian earnings capacity associated with having a service-connected disability.
Here are some other key points:
- Tax-Free: VA disability compensation is not subject to federal or state taxes.
- No Income Limits: The amount a veteran can receive is not affected by their income from other sources. For example, a veteran can have a 100% permanent and total (P&T) VA rating and be employed full-time with no income restrictions.
- VA Disability Rating System: The VA uses a rating system ranging from 0% to 100%, in increments of 10%, to evaluate the severity of the disability. Each rating corresponds to a specific monthly compensation amount. A 0% rating is non-compensable. VA disability pay begins at 10%. Additional compensation for eligible dependents begins at 30%.
What are the VA Disability Income Limits?
While regular VA disability compensation benefits are not subject to income limits, there are three other VA benefits programs that are subject to income restrictions.
They are VA Individual Unemployability (IU), VA pension, and VA aid and attendance.
#1. Total Disability Individual Unemployability (TDIU)
While there are no income limits for regular VA disability compensation, there are income considerations for veterans receiving benefits under Total Disability Individual Unemployability (TDIU).
TDIU allows veterans who cannot maintain substantially gainful employment due to service-connected disabilities to be compensated at the 100% disability rate, even if their combined disability rating is less than 100%.
Learn more about TDIU here.
2024 VA Individual Unemployability Income Limits
- Substantially Gainful Employment: Veterans receiving TDIU must not be able to engage in substantially gainful employment, which generally means earning above the poverty threshold. In 2024, the poverty threshold for one person is approximately $15,060 annually.
- Marginal Employment: Income from marginal employment, such as odd jobs or work that pays below the poverty threshold, does not affect TDIU benefits.
#2. VA Pension
VA pension benefits are needs-based programs for wartime veterans with limited income who are permanently and totally disabled or aged 65 and older.
Unlike VA disability compensation, VA pension benefits do have income limits.
Learn more about VA pension here.
2024 Income Limits for VA Pension
The income limits for VA pension benefits are based on the Maximum Annual Pension Rate (MAPR), which varies depending on the veteran’s family situation.
- Single Veteran: The MAPR for a single veteran with no dependents is approximately $16,551 per year. If you qualify for Housebound benefits, the MAPR increases to $20,226. If you qualify for Aid and Attendance benefits, the MAPR increases to $27,609.
- Veteran with At Least One Dependent: The MAPR increases for veterans with dependents, with the limit for a veteran with one dependent being approximately $21,674 per year. If you qualify for Housebound benefits with dependents, the MAPR increases to $25,348. If you qualify for Aid and Attendance benefits, the MAPR increases to $32,729. If you have more than one dependent, add $2,831 to the MAPR amount for each additional dependent.
Any countable income, including Social Security benefits and retirement payments, is considered when determining eligibility for VA Pension benefits.
Check the most current VA pension rates here.
#3. VA Aid and Attendance
VA Aid and Attendance (A&A) is available to wartime veterans and their survivors who require assistance with daily living activities.
This program provides additional financial support on top of the basic VA pension benefits for those who need help with personal care due to disability.
Unlike standard VA disability compensation, VA Aid and Attendance benefits do have income and asset limits to qualify.
Learn more about VA Aid and Attendance here.
2024 Income Limits for VA Aid and Attendance
The income limits for VA Aid and Attendance benefits are based on the Maximum Annual Pension Rate (MAPR), which varies depending on the veteran’s family situation:
- Single Veteran: The MAPR for a single veteran with no dependents who qualifies for Aid and Attendance benefits is $27,609.
- Veteran with At Least One Dependent: The MAPR increases for veterans with dependents. If you qualify for Aid and Attendance benefits, the MAPR is $32,729. If you have more than one dependent, add $2,831 to the MAPR amount for each additional dependent.
Check the most current VA Aid and Attendance rates here.
About the Author
Brian Reese
Brian Reese is one of the top VA disability benefits experts in the world and bestselling author of You Deserve It: The Definitive Guide to Getting the Veteran Benefits You’ve Earned (Second Edition).
Brian’s frustration with the VA claim process led him to create VA Claims Insider, which provides disabled veterans with tips, strategies, and lessons learned to win their VA disability compensation claim, faster, even if they’ve already filed, been denied, gave up, or don’t know where to start.
As the founder of VA Claims Insider and CEO of Military Disability Made Easy, he has helped serve more than 10 million military members and veterans since 2013 through free online educational resources.
He is a former active duty Air Force officer with extensive experience leading hundreds of individuals and multi-functional teams in challenging international environments, including a combat tour to Afghanistan in 2011 supporting Operation ENDURING FREEDOM.
Brian is a Distinguished Graduate of Management from the United States Air Force Academy, Colorado Springs, CO, and he holds an MBA from Oklahoma State University’s Spears School of Business, Stillwater, OK, where he was a National Honor Scholar (Top 1% of Graduate School class).
