Transitioning from military to civilian life is a significant challenge for veterans, with factors like job opportunities, healthcare access, and tax policies shaping their retirement experience. A 2025 WalletHub study ranks the 50 states and Washington, D.C., based on 28 metrics across economic environment, quality of life, and healthcare to determine the best and worst places for military retirees. Here’s a look at the top five states where veterans can thrive, and the five where they face the toughest conditions, updated for 2025.
The Best States for Military Retirees
- South Carolina (Score: 61.04)
South Carolina tops the list for the second year, offering a veteran-friendly environment. It ranks first for economic conditions, with no state income tax on military pensions and policies like veterans’ preference in private hiring. The state also boasts a high share of veteran-owned businesses and robust job opportunities. With 12.3 VA health facilities per 100,000 veterans and a low veteran suicide rate, South Carolina supports both financial and physical well-being. Its vibrant military community and transition programs make it a haven for retirees. - Maryland (Score: 60.82)
Maryland climbs to second place, excelling in quality of life (ranked first) due to its proximity to military bases like Joint Base Andrews and a strong public university system. It offers solid job opportunities and 10.7 VA health facilities per 100,000 veterans. While its cost of living is higher, Maryland’s veteran support programs and access to D.C.-area resources make it a strong choice. - Florida (Score: 59.73)
Florida remains a retiree favorite, ranking high for its lack of state income tax, including on military pensions, and affordable housing relative to other coastal states. With 21.3% of its population over 65 and ample VA services (11.2 facilities per 100,000 veterans), it’s ideal for veterans seeking a sunny, supportive retirement. Florida also offers vibrant veteran communities and recreational opportunities like fishing and golf. - Virginia (Score: 58.91)
Virginia shines with the highest share of veteran-owned businesses and a large veteran population (8.25% of residents). Its military pension tax exemption, increasing to $40,000 in 2025, boosts affordability. With 9.8 VA health facilities per 100,000 veterans and strong job markets near military hubs like Norfolk, Virginia is a top pick for career-minded retirees. - Alaska (Score: 57.62)
Alaska leads in veterans per capita and VA spending per veteran, making it a haven for those seeking community and support. Despite its high cost of living, no state income tax and access to 8.9 VA health facilities per 100,000 veterans help. Outdoor enthusiasts will appreciate its recreational offerings, though harsh winters may deter some.
The Worst States for Military Retirees
- Vermont (Score: 39.12)
Vermont ranks last due to its harsh economic environment, taxing military pensions fully and imposing high state income taxes. Its low quality-of-life score, driven by cold winters and limited veteran-specific programs, doesn’t help. With only 6.2 VA health facilities per 100,000 veterans, retirees face challenges accessing care. - Oregon (Score: 40.23)
Oregon struggles with a high percentage of homeless veterans and limited job opportunities for retirees. Its quality-of-life ranking is the lowest, partly due to high living costs and fewer veteran-focused resources. Despite 7.8 VA health facilities per 100,000 veterans, the state’s economic environment hinders retirees. - New Jersey (Score: 41.56)
New Jersey ranks poorly due to its low veteran population and high cost of living, with only 2 VA medical centers for 428,000 veterans. Limited veteran-owned businesses and job opportunities, combined with high taxes, make it less welcoming. However, full property tax exemptions for disabled veterans offer some relief. - Washington, D.C. (Score: 42.01)
Despite its proximity to federal resources, D.C. fully taxes military pensions and has a high cost of living. It ranks last in veteran-owned businesses and job opportunities, with a high homeless veteran rate. Only 5.6 VA health facilities per 100,000 veterans further diminish its appeal. - Nebraska (Score: 42.87)
Nebraska lags with a weak economic environment and few VA health facilities (6.1 per 100,000 veterans). Its low quality-of-life score reflects limited recreational options and veteran support programs, making it less ideal for retirees seeking community or employment.
Key Considerations for Veterans
WalletHub’s analysis highlights critical factors for retirees: tax policies, VA healthcare access, job markets, and quality of life. “The best states for military retirees make that adjustment as smooth as possible,” said WalletHub analyst Chip Lupo. Veterans should prioritize states with no or low taxes on military pensions, like South Carolina or Florida, and ample VA facilities. Proximity to family, climate, and veteran communities also matter, as noted by expert Carl A. Castro, Ph.D.
On the flip side, high-tax states like California (40th) and Vermont burden retirees, while areas like Oregon and D.C. struggle with homelessness and limited job prospects. Even top states score below 61 points, signaling room for improvement nationwide.
Choosing Your Retirement Destination
For military retirees, the right state can ease the transition to civilian life. South Carolina and Maryland offer robust support, while Vermont and Oregon pose challenges. Veterans should weigh financial benefits, healthcare access, and personal priorities like family proximity or lifestyle to find their ideal home. With nearly 2.2 million military retirees in the U.S., choosing the right state is crucial for a fulfilling retirement.