Some service members stationed within the continental United States will see their take-home pay decrease starting January after the Defense Department updated its cost-of-living allowance rates (COLAs).

All 21 non-metropolitan counties in California and New York will lose COLA allowance eligibility under the Defense Department’s 2026 rates released Monday. 

Nine military housing areas will lose the allowance entirely, including Boston, Massachusetts and San Luis Obispo, San Bernardino, Humboldt County, Riverside and Bridgeport in California. 

Military housing areas with the largest decrease include New York City, falling from 8% to 4%. 

Meanwhile, eight military housing areas will see an increase in COLA allowance. Seattle had the largest increase — from no COLA eligibility in 2025 to a 5% rate in 2026. Several other West Coast locations, including Oakland and San Francisco, Santa Clara County also saw notable increases. Staten Island, New York is also among the military housing areas with the highest Continental COLA rates.

Calculate your COLA rate here.

The Defense Department said CONUS COLA will cost about $99 million, benefiting roughly 127,000 service members nationwide in 2026 — significantly more than in 2025, when about 61,000 service members received a total of about $51 million in CONUS COLA payments. In 2024, only about 17,000 service members received the payment.

CONUS COLA is a taxable supplemental allowance, unlike most military benefits such as the basic allowance for housing and the basic allowance for subsistence, which are tax-exempt. The allowance is intended to help offset the cost of goods and services for service members stationed in high-cost areas. Just like basic allowance for housing, it is a monthly stipend, and it is different from cost-of-living adjustments for retirement pay and veterans’ benefits. It is also different from Outside Continental United States (OCONUS) COLA, which is non-taxable and changes every month to adjust for fluctuations in exchange between foreign currencies and the U.S. dollar. CONUS COLA only changes annually.

To qualify for CONUS COLA, a location’s non-housing living costs must be at least 7% higher than the national average.

CONUS COLA payments vary based on a service member’s duty location, rank, years of service and dependent status.

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