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Rising costs make it harder than ever for disabled veterans on a fixed income to stay financially stable. If you’re unable to work due to service-connected conditions, understanding the VA TDIU income limits for 2026 is critical to protecting your benefits.
Total Disability Based on Individual Unemployability (TDIU) allows eligible veterans to receive 100% VA disability compensation, even if they aren’t rated at 100%, as long as their service-connected disabilities prevent them from securing or maintaining substantially gainful employment.
For 2026, the VA’s TDIU income limits are tied to the Federal Poverty Level, along with specific rules around marginal employment and protected work environments.
In this guide, we break down the VA TDIU income limits for 2026, who qualifies, how much you can earn while on TDIU, and what veterans need to know to stay compliant and maximize benefits!
Table of Contents
Summary of Key Points
- Disabled veterans rated 60% or higher, or with two or more service-connected disabilities with at least one rated 40% or higher and a combined rating of 70% or higher, are eligible for TDIU, which pays 100% compensation if the veteran is unable to hold a steady job that supports them financially or find “substantially gainful employment” due to their service-connected conditions.Â
- To be considered for TDIU, disabled veterans must make less than the Federal Poverty Level, which is $15,960 for an individual in 2026. Â
- It’s possible to still work while collecting TDIU benefits, but there are limitations on the type of work and earned income.Â
Related: 2026 VA Disability Rates (2.8% COLA) | OFFICIAL Pay Chart and Pay Dates
What is TDIU?
Total disability based on individual unemployability, or TDIU, is a way for a disabled veteran to receive 100% (or total) disability compensation without being rated 100% disabled.
VA TDIU Eligibility
If your service-connected disability is at least 60% or higher or you have two or more service-connected disabilities with at least one rated 40% or higher and a combined rating of 70% or higher but less than 100%, and it’s difficult or impossible for you to secure or follow “substantially gainful employment,” you may qualify for TDIU. But, as with most things with the VA, there are specific criteria to meet.Â
Income limits
The term “substantially gainful employment” is VA-speak for your ability to hold a steady job that provides income comparable to that earned by non-disabled individuals in the same occupation within your community, effectively representing a living wage.
If your annual earned income is below the poverty level because you’re unemployable due to your service-connected condition, you may qualify for TDIU.
The 2026 Federal Poverty Level for an individual is $15,960, slightly higher than the 2025 FPL of $15,650. For larger households, the level increases by $5,680 per family member.Â
The 70/40 Rule
In addition to earned income, the VA also considers your disability rating when you file for TDIU. You must:
- Have at least one service-connected disability rated at 60% or more disabling, or Â
- Have two or more service-connected disabilities, with at least one rated at 40% or more disabling and a combined rating of 70% or more.Â
VA TDIU Income Limits
While some veterans are unemployable because of their service-connected disabilities, others may be limited in how much they can work.
However, there are some ways that a veteran can earn income while still receiving TDIU benefits.
Protected Environment
A protected environment is an employment situation in which the service-disabled veteran has been allowed special allowances or accommodations for their disability, relative to other employees.
For example, a disabled veteran is not held to the same standards as other employees because of their disability. Another example is if a veteran works for a friend or family member’s business and is allowed to take breaks as often as needed due to flare-ups of their disability symptoms.
Marginal Employment
Marginal employment is underemployment due to the veteran’s disability. It also applies if the veteran is unemployed but is deemed incapable of securing or following a “substantial gainful occupation.”
>> Related: What is Substantially Gainful Employment?
How to File for TDIU
First, you must have an already established service-connected VA disability. If you haven’t filed a VA disability claim, you must do so before applying for TDIU.
There are two forms the VA requires when applying for TDIU benefits:Â
- A Veteran’s Application for Increased Compensation Based on Unemployability (VA Form 21-8940) andÂ
- A Request for Employment Information in Connection with Claim for Disability Benefits (VA Form 21-4192)Â
The Future of TDIU
While there have been several proposals and rumors regarding changes to TDIU, such as frequent reevaluations and termination of benefits after a certain age, none have been implemented in a way that substantially impacts the benefits process.Â
However, if you or a loved one relies on TDIU, it’s important to stay informed. Check in with the VA’s dedicated TDIU page or with VA Claims Insider to provide the most up-to-date information.
Are TDIU benefits better than being VA-rated 100% disabled?
No. Whether you’re rated 100% disabled by the VA or you qualify for TDIU benefits, both pathways pay out the maximum level of compensation for the disabled veteran. Â
However, if you’re still able to work, a 100% VA disability rating DOES NOT restrict your employment or earned income (unlike TDIU).
If you’re not able to work and didn’t receive a 100% disability rating, TDIU will provide you with additional compensation to help cover your costs of living.
However, TDIU includes limits on the income you can make from other sources.
Conclusion
Even if you’re not rated at a total 100% VA disability, you may still be eligible for 100% compensation via TDIU.
Through TDIU, veterans who are VA disability rated 60% or higher, or with two or more service-connected disabilities with at least one rated 40% or higher and a combined VA rating of 70% (or higher), can obtain total compensation if they meet certain employment and income requirements. Â
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FAQs | Frequently Asked Questions
What are the 2026 TDIU income limits?
The VA’s TDIU income limit for 2026 is $15,960 for an individual, plus an additional $5,680 for your spouse or each dependent.
What is the maximum income for TDIU?
To be eligible for TDIU, your earned income must be below the Federal Poverty Level, which is $15,960 for 2026.
What are common TDIU claim mistakes?
Common TDIU claim mistakes are similar to common VA disability claim mistakes, including not filing a complete claim, not including enough supporting evidence, not understanding the definition of “substantially gainful employment,” and not pursuing the claim or using support from a veterans’ advocate.
Does TDIU become permanent?
TDIU is not always permanent. TDIU can be reduced or revoked if you secure or follow substantially gainful employment for 12 consecutive months, your condition improves, and you become employable, or if there was a blatant error or fraud in the original filing.Â
What is the pay scale for TDIU?
The pay scale for TDIU is the same as that for a 100% VA disability rating. The table below shows VA disability compensation rates for 2026, specifically for a 100% disability rating. Â
| VA Rating % | Veteran Alone | Veteran & Spouse | Veteran, Spouse, & Child | Each Additional Child Under Age 18 | Each Additional Schoolchild Over Age 18 |
| 100% | $3,938.58 | $4,158.17 | $4,318.99 | $109.11 | $352.45 |
 Content Reviewed By
Quality Assurance Team
The Quality Assurance (QA) team at VA Claims Insider has extensive experience researching, fact-checking, and ensuring accuracy in all produced content. The QA team consists of individuals with specialized knowledge in the VA disability claims adjudication processes, laws and regulations, and they understand the needs of our target audience. Any changes or suggestions the QA team makes are thoroughly reviewed and incorporated into the content by our writers and creators.
About the Author
Katie McCarthy
Katie McCarthy is a writer and editor with experience in daily news and digital and print magazine publishing. She honed her editorial (and firearms) skills at Guns & Ammo before helping launch Black Rifle Coffee Company’s Coffee or Die Magazine as the managing editor. She holds degrees in English (BA) and public administration (MPA). Katie is a military spouse and word nerd who enjoys reading, hiking, camping, gardening, and spending time with her family.
