Choosing a location where to retire is a major decision for military veterans. Factors like tax benefits, VA healthcare access, job opportunities, outdoor recreation, cost of living and overall quality of life can make a big difference.
Top 10 States for Military Retirees in 2025
Here are the top 10 states for veterans to settle down and enjoy post-service life.
1. South Dakota
South Dakota tops the list for its low veteran unemployment, no income tax (including military retirement pay), and high VA healthcare availability. Permanently disabled veterans can also receive a property tax exemption up to $150,000.
Nature lovers will appreciate the state’s scenic beauty, free or discounted access to state parks, and exclusive hunting and fishing benefits. The Black Hills region offers camping, hayrides, and events like the Buffalo Round-Up and Sturgis Motorcycle Rally.
Educational benefits are also generous, including free or reduced tuition at state schools for veterans and their children. Rapid City and Sioux Falls offer a mix of small-town friendliness and outdoor adventure.
2. Wyoming
With no state income tax and high access to VA services, Wyoming ranks second. Veterans who are 50% or more disabled receive lifetime fishing licenses and discounted access to state parks and campgrounds.
The state honors military history with museums and historic sites. Cheyenne, the capital, offers Western charm, vibrant trails, and access to Curt Gowdy State Park for year-round outdoor recreation.
3. Louisiana
Louisiana exempts military retirement pay from income tax and provides substantial property tax breaks for disabled veterans. It also ranks high in veteran employment and healthcare access.
Outdoor perks include free hunting and fishing licenses and state park access for disabled veterans. Culturally rich cities like Hammond and Opelousas combine small-town warmth with nearby metro attractions.
4. Oklahoma
Oklahoma is tax-friendly for veterans, exempting military retirement pay and offering full property tax relief for those who are 100% disabled. It boasts excellent VA healthcare access and low rates of veteran unemployment and homelessness.
Veterans receive free admission to state parks and museums and may qualify for free hunting and fishing permits. Cities like Enid, Lawton, and Ardmore rank highly for veteran quality of life.
5. Florida
With no income tax and a large veteran population, Florida provides ample resources, top-tier healthcare access, and year-round outdoor enjoyment. 100% disabled veterans get extended fishing and hunting licenses.
Veteran-friendly cities range from Punta Gorda and Key West to Tampa and Okeechobee, offering everything from island relaxation to urban amenities. Florida also hosts unique military-themed events.
6. Alabama
Alabama exempts military pensions from income tax and offers property tax breaks for 100% disabled veterans and those over 65. It boasts low veteran unemployment, a strong healthcare network, and low cost of living.
Perks include reduced lifetime hunting and fishing licenses and free park admission. Huntsville and Decatur stand out for their community feel, history, and cultural attractions.
7. Arkansas
Arkansas combines affordability, tax benefits, and natural charm. Military retirement pay is tax-exempt, and 100% disabled veterans get full property tax relief.
Veterans enjoy $1.50 lifetime hunting and fishing licenses, half-price camping, and access to historical sites. Cities like Searcy and Little Rock offer unique cultural and recreational options.
8. Iowa
Iowa offers strong employment, one of the lowest veteran homelessness rates, and tax-free military retirement income. 100% disabled veterans qualify for full property tax exemptions.
The Iowa Veterans Trust Fund provides financial assistance, and the state’s clean environment and attractions like Decorah’s waterfalls and Knoxville’s races make it a hidden gem. Cedar Rapids and Ottumwa offer vibrant communities and cultural appeal.
9. Alaska
Alaska has no state income tax and the highest veteran population per capita. VA healthcare is widely accessible, and disabled veterans receive free park access and discounted ferry fares.
Outdoor adventure is everywhere—from glacier hikes to bear watching. Anchorage and Juneau offer rich cultural life with stunning backdrops.
10. New Hampshire
The only northeastern state in the top 10, New Hampshire has no income tax and offers high quality of life, low homelessness, and excellent cost of living.
Veterans receive free state park access and discounted lifetime hunting and fishing licenses. Small-town Keene and the Manchester-Nashua metro offer scenic charm with plenty to do.
Cost of Living Comparison Approximations
The cost of living is one factor that can affect where one decides to settle down. Below is a chart of these ten states and the approximate costs for Homes, Rent, Utilities, Groceries, Transportation and Healthcare. These are the average for each state and the amounts can vary depending on the area within each state you are interested in – for example city vs rural. The amounts are based on one-person for which the data was based; the cost for families would obviously be higher, but this gives you an example how the costs vary by state.
Each of these states offers unique advantages for military retirees, from financial relief and healthcare access to outdoor adventure and community support. Whether you prefer mountains, coastlines, small towns, or vibrant cities, there’s a top-ranked veteran-friendly state to suit your retirement goals.
