Best & Worst States for Military Retirees (2026)

Military families are accustomed to moving, but when it comes time to retire, it can be difficult to decide where to put down roots. For example, veterans must consider state tax policies on military benefits, along with the relative friendliness of different job markets and other socioeconomic factors, when choosing a state in which to settle down. Many retirees also face major struggles including Posttraumatic Stress Disorder, disability and homelessness.

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.

Main Findings

Best States for Military Retirees

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.

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 third-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 most veteran-owned businesses per capita, which indicates that military retirees have good social and business opportunities.

North Dakota

North Dakota is the second-best state for military retirees, in part because it offers extensive healthcare options with the fifth-highest number of hospital establishments. Additionally the state provides support to help returning veterans reintegrate into civilian life. The state also has the 11th-lowest share of homeless veterans, reflecting strong outcomes in preventing and addressing veteran homelessness.

The Peace Garden State stands out for veterans’ access to healthcare as well, it has the 12th-highest number of VA health facilities per capita and it is home to the third-best VA hospitals in the country, ensuring strong medical support for those who have served. It also has the 14th-highest veteran-owned businesses in the country.

To top things off, North Dakota allows employers to give preference to veterans when hiring and has veteran treatment courts.

Wyoming

Wyoming is the third-best state for military retirees, and it boasts the fifth-lowest share of homeless veterans and considering the fact that veterans make up nearly 8% of the population in general, the fourth-highest share in the country, reflects strong support and effective homelessness prevention programs. In addition, Wyoming stands out for its commitment to veterans’ care, with the eighth-highest total VA expenditure per veteran in the country.

The Equality State takes care of its military retirees, too. The state not only exempts military pensions from taxation but also has the sixth-most share of veteran-owned businesses per capita, making it easier for struggling veterans to find support. Additionally, Wyoming ranks first in the nation for the share of veterans not receiving SNAP benefits, highlighting economic stability among its veteran population.

Finally, Wyoming has a number of policies in place to help veterans, such as allowing veterans to be preferred in hiring, and having veteran treatment courts.

Blue States vs. Red States

The methodology can be found on the full version of the article on WalletHub.