CRSC vs CRDP
If you're a military retiree with a VA rating, your retired pay is cut by your VA pay. CRDP and CRSC give some of it back. See which one pays you more.
- CRDP: for ratings of 50% or more, restores the cut (partly, for some disability retirees). Taxable.
- CRSC: for combat-related conditions at 10% or more. Tax-free.
- One or the other, not both. You can switch in a yearly open season.
Why retirees lose retired pay, and how they get it back
By law, you can't receive full military retired pay and VA compensation for the same months unless a special rule applies. To get VA compensation, retired pay is reduced by the same amount. That reduction is often called the VA waiver (38 U.S.C. 5304 and 5305).
Two programs, set by Congress, make up for it. Concurrent retirement and disability pay (CRDP) gives the retired pay back. Combat-related special compensation (CRSC) pays a separate, tax-free amount for combat-related conditions.
| CRDP | CRSC | |
|---|---|---|
| VA rating needed | 50% or more combined (10 U.S.C. 1414) | At least one combat-related condition, 10% or more (10 U.S.C. 1413a) |
| Who | Retirees entitled to retired pay; disability retirees only with 20+ years | Retirees entitled to retired pay, including disability retirees with under 20 years |
| Amount | The retired pay cut for VA, restored | VA's rate for the combat-related conditions alone, up to the retired pay cut |
| Taxes | Taxable, like retired pay | Tax-free |
| In a divorce | Restored retired pay, so it counts in the "disposable retired pay" a court can divide (10 U.S.C. 1408(a)(4)) | "Not retired pay" (10 U.S.C. 1413a(g)), so it isn't divided as retired pay |
| How it starts | Automatic for those who qualify | You apply to your military branch |
What counts as combat-related
The law (10 U.S.C. 1413a(e)) covers a VA-rated condition that is:
A Purple Heart injury
Attributable to an injury for which you were awarded the Purple Heart.
From armed conflict or hazardous service
Incurred as a direct result of armed conflict, or while engaged in hazardous service.
From war-like training or an instrument of war
Incurred in duty under conditions simulating war, or through an instrumentality of war.
Your military branch decides which of your conditions qualify, under Defense Department criteria. This calculator only takes the combat-related rating you enter.
Example: the calculator's starting numbers
A 20-year retiree with $2,500 a month of retired pay, rated 70% with a spouse and one child, 50% of it combat-related, in the 12% bracket. 2026 VA rates.
| VA compensation, 70% with spouse and child | $2,074.45 |
|---|---|
| Retired pay cut for VA (the waiver) | $2,074.45 |
| CRDP: the full cut restored, taxable | $2,074.45 |
| CRDP after 12% federal tax | $1,825.52 |
| CRSC: VA's rate for 50% with spouse and child, tax-free | $1,322.90 |
| After tax, CRDP pays more by | $502.62 a month |
If you qualify for both, DFAS sends you a letter each open season with both amounts and a form to change programs. If you don't return the form, you stay in the program you have. Because CRSC is tax-free, it can be worth more after tax even when its gross amount is lower. CRDP and CRSC are also treated differently when a former spouse receives part of retired pay: CRDP is restored retired pay, and DFAS says choosing it increases the retired pay subject to former-spouse deductions; CRSC payments "are not retired pay" (10 U.S.C. 1413a(g)), and DFAS says they aren't subject to the Uniformed Services Former Spouses' Protection Act.
CRSC can come out ahead when most of your rating is combat-related, when you're in a higher tax bracket, or when you don't qualify for CRDP (under 50%, or a disability retirement with fewer than 20 years).
Questions people ask
What is the difference between CRSC and CRDP?
CRDP gives back the military retired pay that was cut because you receive VA compensation, if your VA rating is 50% or more. CRSC pays a separate amount for combat-related conditions only, tax-free, for any combat-related rating of 10% or more.
Can I get both CRSC and CRDP?
No. If you qualify for both, you receive one or the other. The law requires an annual open season in which you can switch.
Is CRSC or CRDP taxable?
CRDP is taxed the same way as your retired pay. CRSC is tax-free, and the IRS says you may exclude it from income.
Can a former spouse get part of CRDP or CRSC?
CRDP is restored retired pay, so it counts in the disposable retired pay a court can divide under 10 U.S.C. 1408. CRSC payments "are not retired pay" (10 U.S.C. 1413a(g)), and DFAS says CRSC isn't subject to the Uniformed Services Former Spouses' Protection Act, though it can be garnished for alimony and child support.
Do I need to apply for CRDP?
No. CRDP is paid automatically to retirees who qualify. CRSC is different: you apply to your military branch, which decides which conditions are combat-related.
I was medically retired with less than 20 years. Can I get either?
Not CRDP. You may get CRSC for combat-related conditions, but the law limits it so CRSC plus your remaining retired pay doesn't exceed the retired pay your years of service alone would earn.
Updated November 7, 2026. Sources: 10 U.S.C. 1413a (CRSC); 10 U.S.C. 1414 (CRDP, including the annual open season in 1414(d)); 10 U.S.C. 1408 (division of retired pay); 38 U.S.C. 5304 and 5305 (the VA waiver); VA, "Current Veterans disability compensation rates"; IRS Publication 525; DFAS "CRDP and CRSC FAQs"; DFAS retiree newsletter, "CRDP CRSC Open Season FAQs" (December 2025). Not affiliated with the U.S. Department of Veterans Affairs or the Department of Defense.