The 2026 CRSC pay chart sets the maximum tax-free monthly payment a combat-disabled military retiree can receive to offset the portion of retirement pay that is reduced by VA disability compensation. Combat-Related Special Compensation rates rose 2.8% on December 1, 2025, tracking the Social Security cost-of-living adjustment, with monthly rates ranging from $180.42 at a 10% combat-related rating to $3,938.58 at 100% for a veteran with no dependents, according to the Department of Veterans Affairs. If you served, were medically retired, or carry a combat-related disability rating, the figures below show where you fit.
This guide breaks down the full 2026 CRSC pay chart, who qualifies, how the payment is calculated, and what the 2025 Soto v. United States ruling means for your back pay. For a personalized estimate before you apply, our DFAS CRSC Pay Calculator walks through the numbers step by step.
Key Takeaways
- 2026 CRSC rates rose 2.8%: The 2026 CRSC pay chart reflects a 2.8% COLA increase effective December 1, 2025, applied to every rating from 10% to 100%.
- Tax-free payments: CRSC is excluded from federal and state income tax, unlike standard military retirement pay, which counts as taxable income.
- You must apply: CRSC is not automatic. You file DD Form 2860 with your branch of service to start payments and receive any back pay.
- Combat-related is narrower: Disabilities must trace to armed conflict, hazardous duty, an instrumentality of war, or simulated war to qualify under DoD rules.
- 100% rate is $3,938.58: At a 100% combat-related rating with no dependents, the 2026 CRSC base rate matches the VA disability compensation rate.
- Soto removed the six-year cap: After the June 2025 Supreme Court ruling, CRSC back pay is no longer capped at six years from your filing date.
- CRSC cannot exceed your VA offset: Your actual payment is limited to the retirement pay you waived to receive VA disability compensation.
What Is the CRSC Pay Chart and How Does It Work?
The CRSC pay chart is the schedule of tax-free monthly payments authorized under 10 U.S.C. § 1413a for retired military veterans with combat-related disabilities. The chart mirrors the VA disability compensation rates and adjusts each December for the Social Security cost-of-living increase. Your CRSC amount is capped by whichever is smaller: the rate for your combat-related rating or the retirement pay that was reduced by your VA waiver.
CRSC exists because of how military retirement and VA disability normally interact. Federal law historically barred concurrent receipt, meaning a retiree who accepted VA disability compensation had to waive an equal amount of retirement pay. That dollar-for-dollar reduction is called the VA waiver or VA offset. CRSC restores some or all of that lost retirement pay, but only for the portion of your disability rating that your branch of service determines is combat-related.
The 2026 CRSC pay chart uses the same monthly rates the VA publishes for service-connected disability compensation. Veterans Affairs applied a 2.8% COLA increase on December 1, 2025, matching the percentage applied to Social Security benefits under 38 U.S.C. § 5312. DFAS uses those VA rates to determine the maximum CRSC any combat-disabled retiree can receive at each rating level.
One important point: the chart shows the ceiling, not always what hits your bank account. If your VA waiver only reduces your retirement pay by $1,000 a month, that is the most CRSC can replace, even if the chart shows a higher figure. The Defense Finance and Accounting Service calculates the actual amount during the application audit and reflects it on your Retiree Account Statement.
2026 CRSC Pay Chart by Disability Rating (Veteran Alone)
For a combat-disabled veteran with no dependents, the 2026 CRSC pay chart ranges from $180.42 a month at 10% to $3,938.58 a month at 100%. These rates took effect December 1, 2025, after the Social Security Administration confirmed a 2.8% COLA increase. The first payment at the new rate was issued on December 31, 2025, for January 2026 benefits.
Below is the full 2026 base-rate table for a veteran with no dependent spouse, child, or parent. Rates are tax-free and reflect the official VA compensation schedule used by DFAS.
| Combat-Related Disability Rating | 2026 Monthly CRSC Maximum (Veteran Alone) |
|---|---|
| 10% | $180.42 |
| 20% | $356.66 |
| 30% | $552.47 |
| 40% | $795.84 |
| 50% | $1,132.90 |
| 60% | $1,435.02 |
| 70% | $1,808.45 |
| 80% | $2,102.15 |
| 90% | $2,362.30 |
| 100% | $3,938.58 |
Veterans rated 10% or 20% receive a flat amount regardless of family size. Dependent additions begin at the 30% rating level. For example, a 70% combat-disabled veteran with a spouse and no children receives $1,961.45 a month under the 2026 chart instead of $1,808.45.
If your spouse qualifies for Aid and Attendance benefits, an extra amount is added to the base rate (ranging from $61 at 30% to $201.41 at 100%). The exact figures for every dependent combination are published on the VA compensation rates page.
How Is Your 2026 CRSC Payment Actually Calculated?
Your actual CRSC payment is generally limited by the lowest applicable amount: the VA compensation rate for your approved combat-related rating, the amount of retired pay you waived to receive VA disability compensation, and, for Chapter 61 disability retirees, the longevity-based portion of retired pay that DFAS calculates during the audit. Most retirees hit the second cap, the VA waiver amount, before they reach the chart maximum.
DFAS walks through five inputs when it calculates CRSC. Each one can lower the final payment:
- Your VA combined disability rating, which sets the VA waiver baseline that CRSC is meant to restore.
- The portion of that rating your branch of service certifies as combat-related, which determines which chart rate applies.
- Your retirement pay calculation, since CRSC cannot exceed your earned retirement amount.
- Your dependent status (spouse, children, parents), which adds to the chart rate at 30% combat-related and above.
- Any Special Monthly Compensation (SMC) eligibility, which can push the chart figure higher when severe injuries qualify.
A common example: a 90% VA-rated retiree whose branch certifies only 60% of the rating as combat-related uses the 60% chart figure ($1,435.02 in 2026), not the 90% figure. The Defense Finance and Accounting Service publishes the full audit process in its CRSC payment guide. If you want to see how this works with your own numbers, the CRSC pay calculator walkthrough maps the inputs step by step.
CRSC vs. CRDP: Which 2026 Program Pays More?
Most retirees who qualify for both CRSC and Concurrent Retirement and Disability Pay (CRDP) get more total income from CRDP on paper, but CRSC often wins after taxes because it is excluded from income tax. You cannot receive both at the same time. DFAS auto-selects the larger benefit in year one, and you can switch each January during Open Season.
| Feature | CRSC | CRDP |
|---|---|---|
| Minimum VA rating | 10% | 50% |
| Combat-related required | Yes (branch determination) | No |
| Tax treatment | Tax-free | Taxable income |
| Application required | Yes (DD Form 2860) | No (automatic) |
| Payment basis | Combat-related portion only | Full VA disability rating |
| Subject to former-spouse division | No | Yes |
| Six-year retroactive cap | No (after Soto, 2025) | N/A |
The tax difference is often the deciding factor. A retiree in the 22% federal tax bracket who receives $15,000 a year in CRSC keeps the full amount, while the same $15,000 paid as CRDP loses around $3,300 to federal income tax alone. State tax savings compound the gap in states that tax retirement income. Each January, DFAS opens a CRSC and CRDP Open Season window so you can switch programs if your situation has changed. The choice is reversible, so most retirees benefit from running the math both ways before committing.
Who Qualifies for CRSC in 2026?
To qualify for CRSC in 2026, you need to meet four conditions confirmed by both your branch of service and DFAS:
- You are entitled to or receiving military retired pay.
- Your retirement pay is currently being reduced by the VA waiver because you accepted VA disability compensation.
- You have a VA disability rating of at least 10% for one or more combat-related conditions.
- You meet one of these retirement pathways: 20+ years of creditable service, medical retirement under Chapter 61 with a 30%+ rating, retired under the Temporary Early Retirement Act (TERA), or placed on the Temporary Disability Retired List (TDRL) or Permanent Disability Retired List (PDRL).
The combat-related determination is the threshold most applications hinge on. Your branch of service (not the VA) decides which conditions qualify. The Department of Defense recognizes four categories: armed conflict, hazardous duty, instrumentalities of war, and simulated war. A disability directly associated with a Purple Heart injury is generally treated as combat-related, but unrelated conditions still require evidence tying them to armed conflict, hazardous duty, simulated war, or an instrumentality of war.
The 2008 National Defense Authorization Act expanded CRSC eligibility to medically retired Chapter 61 retirees with fewer than 20 years of service, provided they can document the combat-related cause. This is a key point for veterans who were medically separated early in their careers and assumed they were ineligible. The combat-related cause does not require a wartime deployment. Training accidents involving live-fire weapons, parachute jumps, dive operations, or hand-to-hand combat practice all qualify as simulated war under DoD rules.
How the Soto v. United States Ruling Changed CRSC Back Pay
On June 12, 2025, the U.S. Supreme Court ruled unanimously in Soto v. United States that the Barring Act's six-year statute of limitations does not apply to CRSC claims. Justice Clarence Thomas, writing for a 9-0 Court, held that the CRSC statute (10 U.S.C. § 1413a) contains its own settlement authority and is not constrained by the general six-year cap.
The ruling matters for two reasons. First, veterans who applied for CRSC years after they became eligible and were previously told they could only receive six years of back pay can now seek retroactive payments dating to their original eligibility date. The class affected by the ruling includes roughly 9,000 veterans, according to the National Veterans Legal Services Program. Many are Chapter 61 medical retirees who became eligible at retirement but did not apply until years later.
DoD and the service branches have been working on implementation guidance for Soto, and affected retirees may need branch or DFAS review before any additional retroactive CRSC is paid. Veterans previously limited by the six-year cap should contact their branch CRSC office and keep copies of any prior CRSC decisions.
If your CRSC was previously capped at six years of retroactive pay, contact your branch's CRSC office in writing. The full Supreme Court opinion is available through Cornell Law's Legal Information Institute. For a deeper look at how the ruling interacts with the 100% pay rate, see our breakdown of how much 100% CRSC pay actually delivers in 2026.
How to Apply for CRSC: A Step-by-Step Process
You apply for CRSC by submitting DD Form 2860 directly to your branch of service, not the VA or DFAS. The application requires your VA rating decision, service medical records that document the combat-related cause, your retirement orders, and your DD214. Processing typically takes three to six months, depending on the branch and complexity of the claim.
Follow these seven steps to file a complete CRSC application:
- Confirm your retirement pay is currently reduced by your VA disability compensation. Without this offset, CRSC has nothing to restore.
- Download DD Form 2860 from the DFAS Apply for CRSC page and complete every section. Sign and date the form before you submit it.
- Gather your VA rating decision letter, including the code sheet showing each rated condition and percentage.
- Pull service medical records that show when and how the combat-related injury occurred, along with any related After Action Reports, line-of-duty determinations, or award citations.
- Include copies of any Purple Heart, Combat Action Badge, or similar award documents, which carry strong presumptive weight in the combat-related determination.
- Mail the application to the correct branch review board (Army: Fort Knox, KY; Navy and Marine Corps: Washington Navy Yard; Air Force and Space Force: JBSA Randolph, TX).
- Track your claim. After your branch approves the combat-related determination, it forwards the decision to DFAS, which calculates payments and issues your first check.
Submit copies of documents, not originals. Branches do not return original documents, and processing delays are common when files are incomplete. If your branch denies the combat-related determination, you can request reconsideration with new evidence by submitting CRSC Form 12e along with any updated VA decisions.
CRSC is not a legal proceeding, and most applications are filed by the veteran without representation. If your service medical records are thin or your combat-related cause is hard to document (for example, an exposure-related condition that emerged years after service), a Veterans Service Organization or accredited claims agent can strengthen the file. VSO assistance is free.
Key Terms in the 2026 CRSC Pay Chart
Understanding the chart depends on knowing the terms DFAS and your branch uses. Here are the definitions you will see throughout the application and audit process:
Combined VA Disability Rating: The overall percentage VA assigns after combining all service-connected conditions using the Combined Ratings Table. The combined rating is not a simple addition.
Combat-Related Rating: The portion of your VA rating that your branch certifies as combat-related under DoD rules. CRSC uses this rating, not your full VA rating.
VA Waiver (VA Offset): The dollar amount of retirement pay you give up each month to receive VA disability compensation. CRSC restores some or all of this amount.
Concurrent Receipt: The legal concept of receiving full retirement pay and full VA disability at the same time. CRDP and CRSC are the two programs that permit forms of concurrent receipt.
Chapter 61 Retirement: Medical retirement under 10 U.S.C. Chapter 61 with fewer than 20 years of service. Eligible for CRSC under the 2008 NDAA expansion if the combat-related cause is documented.
Barring Act: A federal six-year statute of limitations (31 U.S.C. § 3702) that previously capped CRSC back pay. The Supreme Court ruled in Soto that it does not apply to CRSC.
SMC: Special Monthly Compensation. An additional VA benefit for severe injuries can increase the CRSC chart figure beyond the base rate.
Why the 2026 CRSC Pay Chart Matters Beyond the Numbers
The chart figures look straightforward, but every line on it represents a tax-free dollar that does not get clawed back by federal income tax, by state income tax in most states, or by an SSDI offset. The Military Officers Association of America has emphasized that the after-tax value of the chart is meaningfully higher than face value for most retirees, especially those in higher tax brackets or in states that tax military retirement income.
MOAA's guidance is that combat-disabled retirees who fail to apply for CRSC, often because they assume CRDP will handle it automatically, can leave thousands of dollars of after-tax income on the table each year. Even retirees who are not sure whether their disabilities will qualify as combat-related are advised to file DD Form 2860 to get a formal determination on the record. A denial costs nothing; an unfiled claim can cost years of payments.
In our experience helping readers work through CRSC questions, three documentation patterns predict the strongest applications: Purple Heart citations or Combat Action Badges (which create an automatic presumption), unit-level After Action Reports that name the claimant or describe the event causing the injury, and service medical records from within 30 days of the inciting incident. Where these exist, the combat-related determination tends to go faster and with fewer reconsideration requests.
This article is informational and does not provide legal advice. Decisions about how to pursue a CRSC claim, especially for Chapter 61 retirees or veterans with documentation gaps, are individual and may benefit from a conversation with a Veterans Service Organization or an accredited claims agent before you file.
Putting the 2026 CRSC Pay Chart to Work for You
As of 2026, the CRSC pay chart provides tax-free monthly compensation that can change the financial picture for any retired veteran with a combat-related disability. The 2.8% COLA increase that took effect December 1, 2025, the Soto v. United States ruling that removed the six-year back-pay cap, and the expanded eligibility for Chapter 61 medical retirees all make 2026 the year to confirm whether you are receiving every dollar you have earned.
If you have not yet applied or if your original application was limited under the old Barring Act interpretation, the next step is to gather your documentation and file DD Form 2860 with your branch of service. To estimate your specific 2026 payment before you file, use our DFAS CRSC pay calculator guide, and read our deeper breakdown of how much 100% CRSC pay actually delivers in 2026.
For a broader breakdown of how CRSC fits with VA disability and military retirement, read Disability Help’s guide on receiving 100% VA disability and military retirement pay.
Frequently Asked Questions About the 2026 CRSC Pay Chart
How much does CRSC pay in 2026 at 100%?
The 2026 CRSC pay chart shows a maximum monthly payment of $3,938.58 for a 100% combat-disabled veteran with no dependents. Add-ons for a spouse, children, or dependent parents increase this figure further. The actual payment cannot exceed the amount of retirement pay being offset by VA disability compensation.
Is CRSC tax-free in 2026?
Yes. CRSC is excluded from federal income tax and from state income tax in every state. CRSC payments are not reported on your tax return and do not affect taxable Social Security or other income thresholds. The tax-free status is the main reason many retirees choose CRSC over CRDP, even when CRDP pays a higher gross amount.
Can I receive both CRSC and CRDP in 2026?
No. You can qualify for both programs, but cannot receive both at the same time. DFAS automatically pays the larger benefit during your first year of joint eligibility. Each January, you can switch between programs during the CRSC and CRDP Open Season if your situation has changed.
What changed for CRSC back pay after Soto v. United States?
The June 2025 unanimous Supreme Court decision in Soto v. United States removed the six-year cap on CRSC retroactive payments. Veterans whose retroactive CRSC was limited to six years can now seek payment dating back to their original eligibility. DFAS is auditing existing accounts and issuing additional back pay to affected retirees.
Does CRSC reduce my SSDI or VA disability payments?
No. CRSC does not reduce or replace VA disability compensation, which you continue to receive separately. It also does not count as income for Social Security Disability Insurance (SSDI), so receiving CRSC does not lower your SSDI benefit. CRSC only interacts with the retirement-pay portion of your monthly income.
How long does CRSC processing take in 2026?
Most CRSC applications take three to six months from submission to first payment, depending on the branch of service and how well-documented the combat-related cause is. Army claims often take longer than Navy or Air Force claims due to the higher volume at the Fort Knox review board.
The post 2026 CRSC Pay Chart: Tax-Free Monthly Rates for Combat-Disabled Veterans appeared first on Resources on Disability Assistance: Your Rights and Benefits.
source https://www.disabilityhelp.org/crsc-pay-chart/
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