A comprehensive analysis across the United States has identified the best states for military retirees. This study highlights where veterans can maximize pensions, access robust healthcare systems, and build stable civilian lives post-service.
Conducted by WalletHub and released on May 18, 2026, the study compared all 50 states and the District of Columbia across 28 factors. These factors included military pension taxes, VA healthcare accessibility, employment opportunities, and overall quality of life.
Top States for Military Retirees
The findings indicate a clear trend: states with low taxes, strong veteran services, and accessible healthcare consistently ranked highest.
1. South Carolina
South Carolina takes the top spot for the third year in a row, thanks to its outstanding performance. The state provides:
- No taxes on military retirement income
- Strong hiring preferences for veterans
- Programs to ease the transition into civilian life
With a large veteran population and one of the top VA hospital systems in the nation, South Carolina excels in healthcare. This ranking helps retirees access both services and community support.
2. North Dakota
North Dakota excels in economic conditions and healthcare access, securing second place. The state ranks highly in hospital availability and VA facilities per capita. Policies like veteran hiring preferences and veteran-specific courts facilitate reintegration into civilian life.
3. Wyoming
Wyoming is noted for its high quality of life, ranking first overall in the study. The state’s relatively low population, open space, and favorable tax environment offer retirees a quieter lifestyle with fewer financial pressures.
4. New Hampshire
New Hampshire performs well across multiple categories, ranking fifth in economic environment, 11th in quality of life, and 12th in healthcare. It offers solid job opportunities and a stable environment for veterans seeking post-service careers.
5. Maryland
Quality of life primarily drives Maryland’s ranking, placing it second in this category. This makes the state an attractive option for retirees.
6. Alaska
Alaska ranks seventh in economic environment and sixth in quality of life. It appeals to retirees looking for a supportive veteran network. While the veteran population and quality of life rank well, its remote location may not suit everyone.
7. Florida
Florida is a longstanding favorite among retirees. With no income tax, military pensions extend further. A large veteran community, extensive VA services, and a warm climate make the state practical and desirable.
8. Massachusetts
While Massachusetts has a lower quality-of-life ranking (50th), it ranks first in healthcare. The excellent medical services available to veterans keep it among the top 10.
9. Minnesota
Minnesota’s strength lies in its high-quality healthcare system, featuring prominently nationally. Though its economic environment varies, access to care attracts retirees with ongoing medical needs.
10. South Dakota
South Dakota rounds out the top 10, balancing job opportunities with low veteran homelessness rates. Its supportive environment makes it a solid choice for retirees seeking financial stability.
Common Traits of Top States
The highest-ranking states share key characteristics:
- Favorable tax policies, often exempting military pensions
- Strong VA healthcare access and hospital systems
- Robust job markets and veteran hiring initiatives
- Established veteran communities and support services
Challenging States for Military Retirees
Some states face challenges in providing adequate support. WalletHub identifies the five worst-performing areas as:
- Oregon (last place)
- Washington
- Vermont
- New Jersey
- District of Columbia
Oregon ranks at the bottom due to low scores in quality of life and veteran services, leading to high homelessness rates. Washington performs poorly in VA hospital quality and availability, essential factors as retirees often need ongoing care.
Key Takeaway
For the approximately 1.5 million retired service members across the U.S., choosing a location significantly influences finances and long-term health. WalletHub’s findings suggest that the best states provide complete solutions—economic opportunity, quality healthcare, and supportive communities for life after service.