Retiring from the military is a big life change. For many veterans, it means adjusting to civilian life, managing new expenses, and finding a place where they can enjoy their retirement comfortably. Some U.S. states offer better support and benefits for military retirees than others.
WalletHub, a financial research website, studied all 50 U.S. states (plus Washington, D.C.) to find out which are the best and worst places for retired military personnel. If you or a family member has served in the military and are considering retirement, this study can help you decide where to live next.
How the States Were Ranked
WalletHub used three main factors to rank each state:
Economic Environment – This looks at things like taxes on military benefits and cost of living.
Quality of Life – This includes the number of military-friendly communities and recreation options.
Healthcare Services – This focuses on the availability and quality of hospitals and VA (Veterans Affairs) facilities.
Each state received a total score. A higher score meant the state was better for military retirees. In the three categories (economy, life quality, and healthcare), a lower number meant a better ranking. For example, ranking “1” is best, and “51” is the worst — since Washington, D.C. was included.
Top-Ranked State for Military Retirees
South Carolina came out on top as the best state for military retirees. The state has a strong veteran presence and many military bases — 15 to be exact. It also ranks high for its economic conditions and overall support for veterans.
Texas, which has the highest number of veterans (around 1.4 million), also ranked well, thanks to strong job markets and a military-friendly culture.
Hawaii leads in active duty numbers, with about 42,000 active personnel across 49 military bases.
Where Florida Stands
Florida remains a favorite choice for military retirees. It has no state income tax, which means veterans keep more of their retirement income. Florida also has many VA medical centers and military communities, which helps with healthcare and social support. Its warm climate and relaxed lifestyle are also a big plus for older veterans.
While the exact rank may change each year, Florida consistently ranks among the top 10 or 15 states for military retirees. Its balance of tax benefits, healthcare access, and veteran-friendly policies keeps it popular.
States That Tax Military Retirement Benefits
Some states tax military retirement pay, making them less attractive to veterans. These states include:
California
Montana
Rhode Island
Utah
Vermont
On the other hand, eight states don’t have any state income tax, so they don’t tax military retirement pay at all. Twenty-six states do have income tax but either fully or partially exempt military retirement income. South Carolina, for example, partially taxes these benefits.
Healthcare Makes a Big Difference
For veterans, access to good healthcare is a big concern. VA hospitals provide care for retired military personnel, but the quality and availability of these hospitals vary by state.
California has the highest number of VA hospitals, with 103 facilities. However, it still ranks low overall for military retirees — 10th from the bottom — due to high living costs and tax policies.
Oregon ranks as the worst state for military retirees. One reason is poor healthcare services. For example, the Portland VA hospital only scored 2 out of 5 in quality.
Choosing where to retire after military service is a personal and important decision. Veterans need to think about cost of living, access to healthcare, and tax rules on their retirement income. States like South Carolina, Texas, and Florida offer great benefits, supportive communities, and good healthcare, making them top picks. On the other hand, states with high taxes or poor healthcare, like Oregon or California, may be less appealing.
For military retirees, moving to the right state can mean a more comfortable and secure retirement.
