The Department of War Releases the 2026 Continental U.S. Cost-of-Living Allowance Rate

The Department of War released the 2026 Continental United States Cost-of-Living Allowance rates today. These new rates will go into effect Jan. 1, 2026. As a result of the 2026 adjustment, $99 million will be paid to approximately 127,000 uniformed service members stationed within Continental United States next year.

Continental United States Cost-of-Living Allowance is a supplemental allowance provided to service members and designed to help offset higher living expenses in the highest-cost locations in Continental United States. An area is considered high-cost if the non-housing cost of living for that area, inclusive of categories such as transportation and goods and services, exceeds a threshold of 107% of the national average. 

By law, a Continental United States Cost-of-Living Allowance rate is only prescribed when the index meets a certain threshold above the Continental United States average. Service members assigned to duty stations where the non-housing cost of living is at least seven percent above the national average are eligible for Continental United States Cost-of-Living Allowance. Data is adjusted to account for Basic Allowance for Subsistence, which is meant to offset the costs for a service member’s meals and cost savings gained from shopping at commissaries and exchanges. 

For 2026, these are the Continental United States Cost-of-Living Allowance changes:

• Six military housing areas will begin receiving Continental United States Cost-of-Living Allowance; 
• Eight military housing areas will receive an increase in Continental United States Cost-of-Living Allowance; 
• Two military housing areas will continue receiving the Continental United States Cost-of-Living Allowance; 
• Two military housing areas will receive a decrease in Continental United States Cost-of-Living Allowance;
• Nine military housing areas will no longer receive Continental United States Cost-of-Living Allowance; and
• 21 counties will lose Continental United States Cost-of-Living Allowance for non-military housing areas in non-metropolitan counties. 

Military housing areas with the highest Continental United States Cost-of-Living Allowance rates:

• San Francisco, California        8%
• Oakland, California            6%
• Santa Clara County, California    5%
• Staten Island, New York        5%
• Seatle, Washington            5%

Military housing area with the largest decrease: 

• Humboldt County, California    5% to 0%

Military housing area with the largest increase: 

•  Seattle, Washington            0% to 5%

The total amount of Continental United States Cost-of-Living Allowance a service member receives varies based on geographic duty location, pay grade, years of service, and dependency status. Service members can calculate their Continental United States Cost-of-Living Allowance rate at https://www.travel.dod.mil/Allowances/CONUS-Cost-of-Living-Allowance/CONUS-COLA-Rate-Lookup/.  

Additional information about Continental United States Cost-of-Living Allowance can be found on the Defense Travel Management Office website at https://www.travel.dod.mil/Allowances/CONUS-Cost-of-Living-Allowance/.