It's official. Military retired pay goes up 3.6% for 2027. September CPI-W came in at 330.654 on October 14, which settled the number, and the same 3.6% applies to your retired pay, SBP annuities, VA disability compensation and Social Security.
For an E-7 who retired at 20 years, that's $103 more a month, or $1,236 a year. It's up from 2.8% last year, and the biggest COLA since 2023. The new rate starts December 1 and the first bigger deposit lands December 31, because January 1 is a holiday.
A raise is a percentage. Your check is a number.
The 3.6% goes on your gross retired pay. What lands in your account after federal tax, your state and your VA rating is a different figure. Put in your details and see it in about a minute. Free, no account, nothing saved.
See my real number →On this page
- 2027 military retirement pay increase chart by rank
- Figure your own 2027 retired pay
- How the 3.6% was figured
- 2027 VA disability rates at 3.6%
- Retired in 2026? Your first COLA is smaller
- Who gets something other than 3.6%
- When the raise hits your account
- How 3.6% compares with past COLAs
- What I'd check before December 31
- FAQ
2027 Military Retirement Pay Increase Chart by Rank
Here's what 3.6% adds to a High-3 pension at the most common retirement points. Both columns are rounded down to the whole dollar, the way the law has DFAS pay it, so the 2026 amounts match my 2026 retirement pay chart.
| Rank and years | 2026 monthly | 2027 monthly | Monthly raise |
|---|---|---|---|
| E-5, 20 yrs | $2,080 | $2,154 | +$74 |
| E-6, 20 yrs | $2,467 | $2,555 | +$88 |
| E-7, 20 yrs | $2,880 | $2,983 | +$103 |
| E-8, 24 yrs | $4,070 | $4,216 | +$146 |
| E-9, 26 yrs | $5,291 | $5,481 | +$190 |
| W-4, 24 yrs | $5,381 | $5,574 | +$193 |
| O-3, 20 yrs | $4,237 | $4,389 | +$152 |
| O-4, 20 yrs | $4,929 | $5,106 | +$177 |
| O-5, 20 yrs | $5,463 | $5,659 | +$196 |
| O-6, 26 yrs | $8,786 | $9,102 | +$316 |
Not on the list? Every $1,000 of retired pay gets about $36 more a month. BRS pensions are 20% smaller than High-3 at the same rank and years, so the dollar raise is 20% smaller too, but the percentage is the same 3.6%.
Figure Your Own 2027 Retired Pay
Put in the gross on your Retiree Account Statement and when your retired pay started. This uses the same rounding DFAS does.
This is the gross. Federal tax, your state, SBP premiums and any VA waiver come out after. The free calculator does all of that.
How the 3.6% Was Figured
The COLA isn't the inflation number on the news. It compares the average CPI-W for July, August and September with the same three months a year earlier, then rounds to the nearest tenth of a percent.
See the numbers
| Month | CPI-W |
|---|---|
| July 2025 | 316.349 |
| August 2025 | 317.306 |
| September 2025 | 318.139 |
| July 2026 | 327.104 |
| August 2026 | 328.481 |
| September 2026 | 330.654 |
| 2025 average | 317.265 |
| 2026 average | 328.746 |
September came in at 330.654, up 0.66% from August. Together with July's 327.104 and August's 328.481, that puts the three-month average at 328.746. Last year's was 317.265. The difference is 3.619%, and rounded to a tenth that's 3.6%.
The full formula, checked against SSA's own numbers for every year since 2022, is in my guide to how the COLA is calculated. If you followed the 2027 COLA forecast this summer, this is where it landed.
2027 VA Disability Rates at the 3.6% COLA
VA compensation goes up by the same 3.6%. Congress sets it every year in its own act, tied to the Social Security COLA, and VA posts its official table once that act is signed. The figures below are the 2026 rates times 1.036, rounded the way VA rounded its 2026 table. "Alone" means no dependents, and ratings under 30% pay nothing extra for a spouse.
| Rating | 2026 alone | 2027 alone | Raise | 2027 with spouse |
|---|---|---|---|---|
| 10% | $180.42 | $186.92 | +$6.50 | Same |
| 20% | $356.66 | $369.50 | +$12.84 | Same |
| 30% | $552.47 | $572.36 | +$19.89 | $640.36 |
| 40% | $795.84 | $824.49 | +$28.65 | $915.49 |
| 50% | $1,132.90 | $1,173.68 | +$40.78 | $1,286.68 |
| 60% | $1,435.02 | $1,486.68 | +$51.66 | $1,622.68 |
| 70% | $1,808.45 | $1,873.55 | +$65.10 | $2,032.55 |
| 80% | $2,102.15 | $2,177.83 | +$75.68 | $2,359.83 |
| 90% | $2,362.30 | $2,447.34 | +$85.04 | $2,651.34 |
| 100% | $3,938.58 | $4,080.37 | +$141.79 | $4,307.87 |
At 100% that's $48,964.44 a year, all of it tax free. Children, school children, dependent parents and Aid and Attendance go up by the same 3.6%. If VA's table differs from this one by a cent anywhere, VA's figure is the one you'll be paid. For the full 2027 tables by household, see my 2027 VA disability rates page.
Retired pay and VA pay in one number
For a 20-year retiree rated under 50%, VA pay comes out of retired pay dollar for dollar. At 50% and up you keep both. Your rank, your rating, your state and your family decide what you actually take home. The calculator works it out in about a minute.
Run my numbers →Retired in 2026? Your First COLA Is Smaller
If your retired pay started during 2026, you don't get the whole 3.6% this December. The law only counts the inflation after the quarter before you retired, because your pension was figured from active duty pay that already reflected what came before.
I ran DoD's method on the BLS numbers. The same arithmetic gives DoD's 2026 table exactly (2.6% for January to March 2025, 1.6% for April to June and 0.7% for July to September), so these should match when DFAS posts its 2027 table.
- January to March 2026. About the full 3.6%. Prices barely moved between last summer and the end of 2025, so this group keeps nearly all of it. One wrinkle. BLS never published an October 2025 index because of the 2025 lapse in appropriations, so I averaged November and December. DoD hasn't said how it will handle the gap, so its table settles this one.
- April to June 2026. 2.6%.
- July to September 2026. 0.4%. An E-7 at 20 years who retired in July gets $11 a month this December instead of $103.
- October to December 2026. No COLA this December. Your first one comes in December 2027, and it's the full amount.
Still serving and picking a date? The quarter decides how much of your first COLA you keep. My COLA trap guide shows what every 2026 retirement date pays once the first COLA lands.
Who Gets Something Other Than 3.6%
- REDUX retirees (you took the Career Status Bonus) get the COLA minus one point, so 2.6% for 2027.
- BRS retirees get the full 3.6%. The one point cut is REDUX only.
- SBP annuities for surviving spouses go up the full 3.6%.
- DIC follows the VA increase, so it goes up 3.6% too.
- CRDP and CRSC follow automatically. CRDP rides your retired pay and CRSC rides your VA compensation, and both of those went up. See my CRDP vs CRSC guide.
- Social Security goes up the same 3.6%.
When the Raise Hits Your Account
- October 14, 2026The 3.6% COLA is set when September CPI-W comes out.
- NovemberMedicare usually announces the 2027 Part B premium. The Trustees estimated $209.50, up from $202.90, which would take $6.60 of the raise if you're on Medicare.
- December 1, 2026The new rates take effect for retired pay, SBP and VA compensation.
- December 31, 2026First deposit at the new rate from both DFAS and VA. It's a day early because January 1 is a holiday.
- January 1, 2027The separate active duty raise takes effect, set at 7%, 6% and 5% by grade unless Congress changes it. It matters if you're retiring in 2027. See the 2027 pay chart and the 2027 retirement pay chart.
How 3.6% Compares With Past COLAs
See the numbers
| Year | COLA |
|---|---|
| 2027 | 3.6% |
| 2026 | 2.8% |
| 2025 | 2.5% |
| 2024 | 3.2% |
| 2023 | 8.7% |
| 2022 | 5.9% |
| 2021 | 1.3% |
| 2020 | 1.6% |
| 2019 | 2.8% |
| 2018 | 2.0% |
| 2017 | 0.3% |
| 2016 | 0.0% |
| 2015 | 1.7% |
| 2014 | 1.5% |
| 2013 | 1.7% |
| 2012 | 3.6% |
| 2011 | 0.0% |
| 2010 | 0.0% |
| 2009 | 5.8% |
| 2008 | 2.3% |
Over the 19 years before this one the COLA averaged 2.5%, and three of those years paid nothing at all (2010, 2011 and 2016). Stack the last six together and a pension that paid $3,000 a month in 2021 pays $3,889 in 2027. That's the COLA doing its job, keeping your pension even with prices, not getting you ahead of them.
What I'd Check Before December 31
- Your Retiree Account Statement. Once DFAS posts the December changes in myPay, the gross should be up about 3.6%. If you retired in 2026, use the table above instead.
- Your federal withholding. More gross means more withheld. If last year ended in a big refund or a bill, adjust your W-4P in myPay now.
- Your state. Most states don't tax military retired pay, but if yours does, the raise is taxed there too. Check yours on the state tax pages.
- Medicare. If you're 65 or older, budget for a higher Part B premium.
- Your real monthly number. Rank, rating, state and family, all in one place. Run it in the free calculator.
FAQ
What is the 2027 COLA for military retirees?
The 2027 COLA is 3.6%. It applies to military retired pay, SBP annuities, VA disability compensation and Social Security. It takes effect December 1, 2026, and the first payment at the new rate arrives December 31, 2026, because January 1 is a holiday.
How much will my military retirement pay go up in 2027?
By 3.6% of your gross retired pay, rounded down to the whole dollar. An E-7 with a 20-year High-3 pension of $2,880 a month goes to $2,983, a raise of $103 a month or $1,236 a year. Every $1,000 of retired pay gets about $36 more a month.
Is the military retirement COLA the same as the Social Security COLA?
Yes. Both use the same CPI-W formula, so both are 3.6% for 2027. The one exception is REDUX, the retirement system for members who took the Career Status Bonus, which gets the COLA minus one percentage point, 2.6% for 2027.
Do VA disability rates go up 3.6% in 2027?
VA compensation rises by the same percentage, set each year by an act of Congress tied to the Social Security COLA. At 3.6%, a veteran rated 100% with no dependents goes from $3,938.58 to $4,080.37 a month starting December 1, 2026.
I retired in 2026. Do I get the full 3.6%?
No. Your first COLA is prorated by the quarter your retired pay started. Using DoD's method on the BLS numbers, retired pay that started January to March 2026 gets about the full 3.6%, April to June 2.6% and July to September 0.4%. Retired pay that started October to December 2026 gets no COLA until December 2027. DFAS publishes the official table.
Does the Blended Retirement System get the full COLA?
Yes. BRS retirees get the full 3.6%. The one point reduction only applies to REDUX.
Is the COLA increase taxable?
The increase in military retired pay is taxed like the rest of your retired pay, federally and in any state that taxes military retirement. The increase in VA disability compensation is tax free.
Does the COLA raise SBP payments?
Yes. SBP annuities paid to surviving spouses rise by the same 3.6% on December 1, 2026.
Sources
- Bureau of Labor Statistics, Consumer Price Index, CPI-W series CWUR0000SA0
- Social Security Administration, Cost-of-Living Adjustment
- 10 U.S.C. 1401a, adjustment of retired pay
- Department of Veterans Affairs, veterans disability compensation rates
See 3.6% compound on your own pension
This page shows one year. The worksheet carries your pension forward year by year with COLA, plus federal tax through the real brackets and your state.
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Related Articles
- 2027 VA Disability Rates
- Why Your COLA Won't Match the Inflation Headline
- The Military COLA Trap
- 2026 Military Retirement Pay Chart by Rank
- 2027 Military Retirement Pay Chart
- 2027 Military Pay Chart
Figures on this page are computed from BLS CPI-W data and the official COLA, using the published 2026 tables. DFAS and VA publish their own 2027 tables, and those are what you'll be paid. This is information, not financial advice.