As military personnel retire, whether they've faced active combat or not, they may find it difficult to readjust to civilian life. Many retirees also face major struggles including Posttraumatic Stress Disorder, disability and homelessness, which are especially difficult to deal with during this period of economic difficulty. These veterans must also consider how state tax policies on military benefits vary, along with the relative friendliness of different job markets and other socioeconomic factors, when choosing a state in which to settle down.
In order to help ease the burden on our nation’s military community, WalletHub compared the 50 states and the District of Columbia based on their ability to provide a comfortable military retirement. Our analysis uses a data set of 28 key metrics, ranging from veterans per capita to the number of VA health facilities to job opportunities for veterans.
Chip Lupo, WalletHub Analyst
Main Findings
Best States for Military Retirees
| Overall Rank | State | Total Score | Economic Environment Rank | Quality of Life Rank | Health Care Rank |
|---|---|---|---|---|---|
| 1 | South Carolina | 64.01 | 2 | 3 | 12 |
| 2 | Maryland | 61.90 | 24 | 1 | 9 |
| 3 | New Hampshire | 59.09 | 5 | 11 | 15 |
| 4 | North Dakota | 58.99 | 3 | 29 | 8 |
| 5 | Virginia | 58.86 | 13 | 5 | 22 |
| 6 | Alaska | 58.58 | 7 | 6 | 28 |
| 7 | Florida | 58.36 | 21 | 4 | 21 |
| 8 | Massachusetts | 58.18 | 9 | 50 | 1 |
| 9 | Wyoming | 58.14 | 14 | 2 | 30 |
| 10 | South Dakota | 58.11 | 12 | 23 | 7 |
| 11 | Minnesota | 56.98 | 27 | 37 | 2 |
| 12 | Alabama | 55.95 | 1 | 13 | 38 |
| 13 | North Carolina | 54.37 | 15 | 14 | 25 |
| 14 | Maine | 53.53 | 11 | 24 | 27 |
| 15 | Arkansas | 53.14 | 20 | 30 | 16 |
| 16 | Ohio | 52.88 | 31 | 40 | 5 |
| 17 | West Virginia | 52.69 | 22 | 42 | 10 |
| 18 | Pennsylvania | 52.46 | 44 | 35 | 4 |
| 19 | Arizona | 52.27 | 10 | 10 | 44 |
| 20 | Oklahoma | 52.16 | 16 | 8 | 45 |
| 21 | Texas | 52.08 | 6 | 32 | 36 |
| 22 | Wisconsin | 51.71 | 32 | 33 | 13 |
| 23 | Missouri | 51.69 | 29 | 22 | 24 |
| 24 | Kentucky | 51.20 | 28 | 38 | 14 |
| 25 | Connecticut | 51.14 | 46 | 27 | 6 |
| 26 | Louisiana | 50.52 | 30 | 15 | 33 |
| 27 | Hawaii | 50.19 | 42 | 9 | 29 |
| 28 | Idaho | 50.17 | 33 | 16 | 32 |
| 29 | Utah | 49.86 | 4 | 31 | 47 |
| 30 | Michigan | 49.82 | 37 | 44 | 11 |
| 31 | Iowa | 49.70 | 26 | 34 | 26 |
| 32 | Delaware | 49.26 | 47 | 12 | 20 |
| 33 | Illinois | 48.93 | 36 | 36 | 17 |
| 34 | Nebraska | 48.69 | 43 | 20 | 23 |
| 35 | Colorado | 48.63 | 38 | 21 | 31 |
| 36 | Georgia | 48.56 | 25 | 18 | 41 |
| 37 | Indiana | 48.53 | 19 | 41 | 34 |
| 38 | Tennessee | 48.02 | 8 | 45 | 40 |
| 39 | Kansas | 48.02 | 45 | 28 | 18 |
| 40 | California | 47.54 | 51 | 7 | 19 |
| 41 | Montana | 47.23 | 35 | 19 | 42 |
| 42 | New York | 46.84 | 50 | 46 | 3 |
| 43 | New Mexico | 46.69 | 40 | 26 | 37 |
| 44 | Nevada | 45.45 | 17 | 39 | 49 |
| 45 | Rhode Island | 45.41 | 23 | 47 | 39 |
| 46 | Mississippi | 43.52 | 18 | 25 | 51 |
| 47 | District of Columbia | 41.41 | 34 | 49 | 46 |
| 48 | New Jersey | 40.64 | 49 | 17 | 48 |
| 49 | Vermont | 39.65 | 48 | 43 | 43 |
| 50 | Washington | 37.79 | 39 | 48 | 50 |
| 51 | Oregon | 37.76 | 41 | 51 | 35 |
Note: With the exception of “Total Score,” all of the columns in the table above depict the relative rank of that state, where a rank of 1 represents the best conditions for that metric category.
- Most
- 1. Alaska
- 2. Montana
- 3. Virginia
- 4. Wyoming
- 5. Maine
- Fewest
- 47. Massachusetts
- 48. Utah
- 49. California
- 50. New York
- 51. New Jersey
- Most
- 1. New York
- 2. California
- 3. Montana
- 4. Wyoming
- 5. Florida
- Fewest
- 47. Mississippi
- 48. South Carolina
- 49. District of Columbia
- 50. Delaware
- 51. Rhode Island
- Lowest
- 1. Mississippi
- 2. Virginia
- 3. South Dakota
- 4. Iowa
- 5. Wyoming
- Highest
- 47. Nevada
- 48. Washington
- T-49. Oregon
- T-49. California
- T-49. District of Columbia
- Most
- 1. New Hampshire
- 2. Alabama
- 3. District of Columbia
- 4. South Dakota
- 5. Nebraska
- Fewest
- 47. Rhode Island
- 48. Illinois
- 49. Connecticut
- 50. New Jersey
- 51. Kansas
- Most
- 1. Iowa
- 2. Kansas
- 3. North Dakota
- 4. Nebraska
- 5. South Dakota
- Least
- 47. New York
- 48. Florida
- 49. District of Columbia
- 50. California
- 51. Hawaii
- Highest
- 1. Virginia
- 2. South Carolina
- 3. Alaska
- 4. South Dakota
- 5. Wyoming
- Lowest
- 47. Massachusetts
- 48. Illinois
- 49. Michigan
- 50. New Jersey
- 51. New York
In-Depth Look at the Best States for Military Retirees
South Carolina
South Carolina is the best state for military retirees, in part because it has many policies in place to help veterans. The state allows businesses to give preferential hiring to veterans, offers academic credit for military service, and has veteran treatment courts, which give services like treatment and mentoring to veterans in the criminal justice system. South Carolina doesn’t tax military pensions, either.
The Palmetto State has the third-best VA hospitals in the country, and the second-most hospitals per capita, which can help ensure that military retirees stay healthy. In addition, South Carolina has the seventh-most veterans per capita and the second-most veteran-owned businesses per capita, which indicates that military retirees have good social and business opportunities.
Maryland
Maryland is the second-best state for military retirees, in part because it offers extensive healthcare options with the ninth-highest number of hospital establishments. Additionally the state has a large number of VA Benefits Administration facilities per capita, ensuring veterans receive dedicated support. The state is also a great place for veterans to continue their education after their military service is done, as Maryland has the ninth-best colleges and universities in the country, and it gives academic credit for military service.
The Old Line State is a good place for military retirees’ finances, too. Maryland partially exempts taxation on military pensions, and it has the 10th-highest job opportunities for veterans. It also has the 13th-highest veteran-owned businesses in the country.
To top things off, Maryland allows employers to give preference to veterans when hiring and has veteran treatment courts.
New Hampshire
New Hampshire is the third-best state for military retirees, and it boasts the highest number of veteran job opportunities in the nation. This is partly due to the fact that veterans make up nearly 7% of the population in general, the 14-highest share in the country. In addition, New Hampshire has the 14th-greatest amount of funding contracts from the Department of Defense per capita.
The Granite State takes care of its military retirees, too. The state not only exempts military pensions from taxation but also has the 11th-most mental health counselors per capita, making it easier for struggling veterans to find support. Additionally, New Hampshire ranks second in the nation for the share of veterans not receiving SNAP benefits, highlighting economic stability among its veteran population.
Finally, New Hampshire has a number of policies in place to help veterans, such as allowing veterans to be preferred in hiring, has veteran treatment courts and provides academic credit for military service.
Blue States vs. Red States
Ask the Experts
Members of the armed forces deserve a comfortable retirement in exchange for their brave sacrifices. But it’s not easy to readjust to civilian life. For insight and advice on overcoming challenges faced by veteran retirees, we asked a panel of experts to share their thoughts on the following key questions:
- Should veterans have to pay taxes on retirement pay?
- What should veterans consider when choosing where to retire?
- What are the best economic opportunities for retired military personnel looking for a new career?
- How can the VA health care system be improved to better serve veterans and their families?
- How should the government help the military community?
Ask the Experts
Ph.D., Associate Professor, College of Business and Management - Lynn University
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Director of Military and Veteran Enrollment and Outreach - Thomas Edison State University
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Professor of Asian Law and Society; Walter E. Beach '56 Chair in Political Science - Dickinson College
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MS-IT | 1SG [USA,Retired], Director of Veteran and Military Services - Central Community College
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Executive Director of the Wohl Veterans Legal Clinic and Director of Veteran and Military Affairs for the Syracuse University College of Law
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Ph.D., Associate Professor and Henry B. Tippie Research Fellow, Department of Management and Entrepreneurship, Tippie College of Business – University of Iowa
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Methodology
In order to determine the best and worst states for military retirement, WalletHub compared the 50 states and the District of Columbia across three key dimensions: 1) Economic Environment, 2) Quality of Life and 3) Health Care.
We evaluated those dimensions using 28 relevant metrics, which are listed below with their corresponding weights. Each metric was graded on a 100-point scale, with a score of 100 representing the most favorable conditions for military retirees. For metrics marked with an asterisk (*), we measured the “number of veterans” by the square root of the veteran population in order to avoid overcompensating for small differences among states, considering Veterans Administration (VA) facilities have not increased proportionally with the number of veterans.
We then determined each state and the District’s weighted average across all metrics to calculate its overall score and used the resulting scores to rank-order our sample.
Economic Environment – Total Points: 33.33
- State Tax on Military Pension: Quadruple Weight (~6.35 Points)
- Tax-Friendliness: Double Weight (~3.17 Points)
Note: This metric is based on WalletHub’s “Tax Rates by State” report. - Share of Veteran-Owned Businesses: Full Weight (~1.59 Points)
- Dollars in Defense Department Contracts per Capita: Full Weight (~1.59 Points)
- Job Opportunities for Veterans: Triple Weight (~4.76 Points)
- State Authorization for Veterans’ Preference in Private Hiring: Full Weight (~1.59 Points)
Note: This binary metric considers the presence or absence of a state statute authorizing private employers to implement a veteran-employment preference without vulnerability to claims of discrimination. - Job Growth (2024 vs. 2023): Double Weight (~3.17 Points)
- Military Bases & Installations per 100,000 Veterans: Full Weight (~1.59 Points)
- Total VA Expenditure per Number of Veterans: Full Weight (~1.59 Points)
- Presence of State Help for Returning Veterans: Full Weight (~1.59 Points)
Note: This binary metric considers the presence or absence of veteran transition programs & commissions in a state. - Presence of Academic Credit for Military Service: Full Weight (~1.59 Points)
Note: This binary metric considers the presence or absence of state legislation recognizing the varied skills and knowledge veterans acquire by counting it toward college credit. - Housing Affordability: Double Weight (~3.17 Points)
- Cost-of-Living Index: Full Weight (~1.59 Points)
Quality of Life – Total Points: 33.33
- Share of Veterans: Full Weight (~3.17 Points)
- Share of Veterans Not Receiving SNAP: Full Weight (~3.17 Points)
- Share of VA Benefits-Administration Facilities per Number of Veterans*: Double Weight (~6.35 Points)
- Quality of Public University System: Full Weight (~3.17 Points)
Note: This metric is based on WalletHub “College & University Rankings.” - Arts, Entertainment & Recreation Establishments per Capita: Half Weight (~1.59 Points)
- Share of Population Aged 40 & Older: Full Weight (~3.17 Points)
- Share of Homeless Veterans: Double Weight (~6.35 Points)
- Idealness of Weather: Double Weight (~6.35 Points)
Note: This metric is based on WalletHub’s “Cities with the Best & Worst Weather” ranking.
Health Care – Total Points: 33.33
- Number of VA Health Facilities per Number of Veterans*: Full Weight (~3.70 Points)
- Federal, State, Local & Private Hospitals per Capita: Full Weight (~3.70 Points)
- Quality of VA Hospitals: Triple Weight (~11.11 Points)
Note: This metric includes VA hospital performance star rating from the U.S. Department of Veterans Affairs’ “Strategic Analytics for Improvement and Learning” (SAIL) performance improvement tool. - Physicians per Capita: Full Weight (~3.70 Points)
- Mental Health Counselors per Capita: Full Weight (~3.70 Points)
- Veteran Suicide Rate: Full Weight (~3.70 Points)
- Presence of Veteran-Treatment Courts: Full Weight (~3.70 Points)
Note: This binary metric considers the presence or absence of veteran-treatment courts, programs that provide treatment and mentoring services to veterans with mental-health and substance-abuse problems in order to keep them out of the criminal justice system and help stabilize their lives.
Sources: Data used to create this ranking were collected as of April 21, 2025 from the U.S. Census Bureau, Bureau of Labor Statistics, Military Officers Association of America, Military OneSource, USAspending.gov, U.S. Department of Veterans Affairs, National Conference of State Legislatures, Center on Budget and Policy Priorities, Council for Community and Economic Research, U.S. Department of Housing and Urban Development, Indeed and WalletHub research.
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