How the calculator works
- Retired pay. Years × 2.5% (2.0% under BRS) × your high-3. For Chapter 61, the greater of your DoD disability rating or that years-based figure, up to 75% of your high-3.
- The offset. Retired pay is cut by your VA compensation, dollar for dollar.
- CRSC. The VA rate for your combat-related rating alone (with your spouse and children), up to the amount of the offset.
- Chapter 61 limit. CRSC plus the retired pay you still get can't exceed what your years of service alone would pay.
- CRDP. With a 50% rating (and 20 years if Chapter 61), the offset is restored instead, up to the same Chapter 61 limit.
More on eligibility, the combat-related categories, and the paperwork in the CRSC guide. Planning a federal job after the military? The FERS retirement calculator shows how bought-back military time adds to a federal pension.
Questions
What is CRSC?
Combat-Related Special Compensation is a tax-free monthly payment for military retirees with combat-related disabilities. Normally your retired pay is cut dollar for dollar by your VA disability pay. CRSC pays back the part of that cut that comes from combat-related disabilities.
Who qualifies for CRSC?
Military retirees who receive retired pay (20+ years, Chapter 61 medical retirement, TERA, or reserve retirement once pay starts) and have at least a 10% VA rating for disabilities your branch approves as combat-related: armed conflict, hazardous duty, training that simulates war, or an instrumentality of war.
How is CRSC calculated?
It is the VA compensation for your combat-related rating alone, including the dependent amounts, capped at the retired pay withheld because of your VA pay. Chapter 61 retirees have one more limit: CRSC plus the retired pay they still get can't exceed what their years of service alone would pay.
CRSC or CRDP: which is better?
CRDP (Concurrent Retirement and Disability Pay) needs a 50% VA rating (and 20 years for Chapter 61 retirees) and restores the whole offset, but it is taxable. CRSC covers only combat-related disabilities but is tax-free. If you qualify for both, DFAS pays one, and you can switch each January during open season. If you don't send a form, DFAS keeps paying the same program.
Is CRSC taxable?
No. CRSC is tax-free. CRDP is restored retired pay and is taxed like it.
How do I apply?
Through your branch, not DFAS or VA: DD Form 2860 with your VA rating decision and evidence that each disability is combat-related (for example, a Purple Heart citation, line-of-duty reports, or medical records). Each branch has its own CRSC office and mailing address on the form instructions.
Sources: 10 U.S.C. 1401, 1413a, and 1414; VA veteran compensation rates effective December 1, 2025; DFAS CRDP/CRSC open season FAQ. Checked November 14, 2026.