1. Veterans Receive Pay Increase in 2025
The federal 2.5% Cost of Living Adjustment (COLA) takes effect for all U.S. veterans in 2025. Veterans with service-connected disability ratings of 10% or higher may qualify for additional benefits based on their state of residence. These enhanced VA compensation rates take effect on December 1, 2024. Additionally, many states offer tax benefits on veteran benefits - check your state's veteran affairs office for specific details.