Top States for Military Retirees in the U.S.

A new national study has identified the best states in America for military retirees, highlighting locations where veterans can optimize their pensions, access robust health care systems, and build stable civilian lives after service. Conducted by WalletHub, the analysis released on May 18, 2026, compared all 50 states and the District of Columbia using 28 factors, including military pension taxes, VA health care access, employment opportunities, and overall quality of life.

Top Ranked States

States that combine low taxes, strong veteran services, and accessible health care consistently ranked highest. Here’s an in-depth look at the leading states and their distinguishing features:

South Carolina

South Carolina takes the top spot for the third year in a row, attributed to its comprehensive offerings such as:

• No taxes on military retirement income
• Strong hiring preferences for veterans
• Programs easing transition into civilian life

With a substantial veteran population and one of the premier VA hospital systems in the nation, South Carolina excels in providing health care and community support for retirees.

North Dakota

North Dakota ranks second due to favorable economic conditions and health care access. The state is highly rated for hospital availability and VA facilities per capita. It also supports veterans through hiring preferences and specialized courts aiding reintegration into civilian life.

Wyoming

Wyoming uniquely ranks first in quality of life. Its low population density and open spaces offer quiet living with minimal financial strain, coupled with a favorable tax environment.

New Hampshire

Landing fifth in economic environment and excelling in quality of life and health care, New Hampshire has a balanced economic environment and ample job opportunities for veterans pursuing post-service careers.

Maryland

Maryland is appealing primarily due to its quality of life, where it ranks second, making it a sought-after destination for retirees.

Alaska

Alaska ranks seventh in economic environment and sixth in quality of life. It offers a robust veteran-support network, though its remote location may not suit everyone despite strong veteran community presence.

Florida

Florida remains a favorite amidst retirees, benefitting from no income tax, which stretches military pensions further. The state also features a significant veteran community, extensive VA services, and pleasant climate.

Massachusetts

Massachusetts leads in health care, providing top-tier medical services to veterans. Though its quality-of-life ranking falls lower (50th), its excellent health infrastructure maintains its presence in the top 10.

Minnesota

Minnesota showcases a high-quality health care system, ranking near the top nationally. Its economic environment is somewhat mixed, but access to medical care makes it especially appealing for retirees with ongoing health needs.

South Dakota

South Dakota completes the top 10, offering a good mix of job opportunities and low veteran homelessness rates, ideal for retirees seeking financial stability.

The Worst States for Military Retirees

Conversely, certain states struggle with providing adequate support, particularly in health care, economic prospects, and cost of living. WalletHub identifies the five-lowest ranking locations as:

• Oregon (bottom position)
• Washington
• Vermont
• New Jersey
• District of Columbia

Oregon placed last for the third year, reflecting insufficient performance across quality of life and veteran services, contributing to high rates of homelessness. Washington joins the low ranks due to substandard VA hospital quality and limited medical facility availability—crucial for retirees often dependent on continuous care.

Key Insights

For around 1.5 million retired service members in the U.S., deciding where to live post-service impacts their finances and long-term health. WalletHub’s study indicates that top states provide not only tax savings but a holistic package including economic opportunity, quality health care, and a supportive community for life beyond service.