Dreaming of sunny days, low taxes, and a place where your service is honored daily? Military retirement isn’t just about a pension—it’s about finding a home where your benefits go further, your community has your back, and your quality of life rises to meet the sacrifices you’ve made.

From warm coastal towns to mountain hideaways, we’ve uncovered the best states that deliver unbeatable Veteran perks, VA access, low living costs, and a whole lot of lifestyle. Welcome to your “Retirement Sweet Spots” guide—where military life transitions into a well-earned reward.

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Best U.S. States for Military Veterans in 2024

According to WalletHub’s 2025 study, here are the leading states for military retirees based on economic environment, quality of life, and VA healthcare access:

1. South Carolina

Ranked #1 overall, South Carolina offers no state income tax on military pensions, strong Veteran support services, high VA facilities per capita, Veteran-owned business density, and state incentives like academic credit for military service.

2. Maryland

Ranked #2, Maryland excels in quality of life (first in the nation). The state also offers substantial VA access and Veteran job opportunities near military installations, albeit with a higher cost of living.

3. Florida

Ranked #3 overall, Florida has no state income tax, a large Veteran population, strong VA facility density, extensive Veteran programs, and attractive climate amenities.

4. Virginia

Number 4–5 depending on ranking, the state offers progressive military pension exemptions (up to $40K by 2025), strong economic and job support, VA access, and a thriving Veteran-owned business community.

5. Alaska, South Dakota, Wyoming and Iowa

These states also feature in top‑10 lists by ClearanceJobs and other sources, noted for no pension tax, property tax relief, low cost of living, VA access, and excellent employment‐quality‐of‐life balance.

Veteran-Friendly Climates and Quality of Life in the U.S.

Climate & Weather

Florida stands out for its warm, sunny weather nearly year-round, which is particularly appealing to retirees who want mild winters and consistent outdoor enjoyment.

Alabama also offers mild winters and abundant sunshine (over 213 sunny days annually in some areas), making it ideal for retirees seeking outdoorsy, temperate living .

South Carolina has a comfortable, humid subtropical climate—warm summers and mild winters—which pairs well with its coastal and mountain landscapes.

Wyoming (e.g. Cheyenne) provides high sunshine days (327 annually), low humidity, and four distinct seasons—ideal for retirees who appreciate wide open spaces and clean mountain air.

Quality of Life & Happiness

South Carolina ranks high on community well-being: rich in Veteran-owned businesses, local services tailored for Veterans (e.g. treatment courts), and low veteran unemployment and suicide rates.

Maryland achieves top-tier quality-of-life scores thanks to strong healthcare access, low Veteran homelessness, and proximity to cultural and governmental resources.

Florida scores well across Veteran support, healthcare availability, community connectivity, and recreational options like beaches and parks—boosting social satisfaction and mental health.

South Dakota and Wyoming are praised for low Veteran unemployment, affordable living, access to nature/outdoor recreation, and strong social support systems.

General Happiness & Lifestyle Trends

A recent Bankrate survey found that while states like New Hampshire, Maine, Vermont, and Wyoming score very high for general retiree happiness—thanks to safety, healthcare, affordability, and clean environments—they often outrank sunny states like Florida due mainly to better insurance, fewer natural disasters, and lower costs .

That said, military retirees often prioritize proximity to Veteran services, community, and mild winters—making Sun Belt states still top contenders for satisfaction when weighted appropriately.

1. South Carolina

No state tax on military pensions, strong economic incentives, academic credit for service, Veteran treatment courts, high VA facility access, and robust veteran-owned business community.

Notably Myrtle Beach is a Veteran-friendly community with over 28,000 Veterans and one of the best homebuyer environments for military families.

2. Maryland

Second overall, Maryland offers top-tier quality of life, and strong job and education opportunities, especially near major military hubs (e.g. Andrews AFB).

3. New Hampshire

New Hampshire offering zero taxation on military retirement pay, excellent Veteran job opportunities, treatment courts, and education recognition for military experience.

4. Florida

Consistently ranked in the top tier for Veterans, Florida offers no state income tax, a high number of VA facilities, free in‑state tuition waivers, Veteran property tax exemptions, and a large retired military population for strong community support.

5. Alabama

Frequently regarded as a top retirement state, Alabama offers no tax on military retirement pay, very low cost of living, managed VA healthcare facilities per capita, and strong property tax relief for disabled or senior Veterans.

6. Virginia

Virginia offers progressive exemption of military retirement income (up to $40,000 by 2025), heavy Veteran business presence, numerous VA facilities, and preference in public employment.

7. Wyoming

Wyoming ranks high for no income tax, robust VA access, and generous benefits like lifetime hunting and fishing licenses for disabled Vets.

8. Oklahoma

Oklahoma offers a full exemption of military retirement pay, zero property tax for 100% disabled Vets, sales tax and license relief, and excellent VA access and employment metrics.

9. South Dakota

South Dakota offers no income tax, one of the highest VA health facility counts per capita, free or reduced admission to state parks, and property tax relief for disabled Veterans.

10. Iowa

Featured in many top‑10 lists, state benefits include a full exemption of military retirement income, robust Veteran employment, lowest rates of homelessness, and full property tax allowance for totally disabled Veterans.

Additional U.S. States for Veteran Retirement

West Virginia offers full pension tax exemption and a low housing‑cost burden, strong VA facility density, and specific Veterans assistance programs.

Alaska also ranks high, with highest veterans per capita, no pension income tax, strong VA health access, and outdoor-centric lifestyle—though living expenses are higher.

Pennsylvania and North Carolina offer full tax exemption on military retirement pay, reasonable cost of living, and a growing appeal for retirees, especially after NC’s 2022 repeal of military pension tax.

Illinois, Texas, and Wisconsin come up in Reddit and community threads for offering total property tax exemptions for 100% disabled vets, no pension tax, and affordable housing in many areas.

Most Popular Places Among Military Retirees

Florida: home to the second-largest retired veteran population in the U.S., with hotspots in coastal areas like Navarre, Tampa offering community, climate, and benefits .

Myrtle Beach, SC emerged as the best city for veteran homebuyers in 2025, with strong community presence and VA-supported housing options.

Colorado Springs, CO is popular among Veterans, with a large military base presence, affordable housing, and plenty of Veteran social/health resources—even though not always top-rated in overall pension‑focused rankings .

Durham, North Carolina and Raleigh are appealing for Veterans in tech, healthcare, and education tracks, and don’t tax military pensions.

Key Insights for Military Retirement Planning

Best overall retirement environments (based on benefits, services, and quality of life):

• South Carolina
• Maryland
• New Hampshire
• Florida

Best for maximum tax relief and frugality:

• Wyoming
• South Dakota
• Oklahoma
• North Carolina
• Pennsylvania

Best communities and cities with strong Veteran presence:

• Myrtle Beach (SC)
• Tampa
• Navarre
• Virginia Beach
• Colorado Springs

Best climate preferences:

• Choose Florida or Alabama if you value sunny warmth.
• South Carolina offers balance.
• Wyoming and South Dakota offer dry, scenic seasons.
• Maryland and Virginia offer four distinct seasons with easy access to cultural and medical infrastructure.

What matters most will depend on your personal priorities. If tax minimization is key, states like Wyoming, South Dakota, or Florida shine. If access to healthcare, Veteran services, and employment is more important, consider South Carolina, Maryland, or Virginia.

And if lifestyle—climate, shoreline, recreation—is high on your list, Florida and the Carolinas offer strong retiree ecosystems with Veteran support built in.

Choosing where to retire after military service is about more than benefits—it’s about building the life you’ve earned. Whether you crave sunshine and salt air, wide-open spaces, or strong community ties and top-tier healthcare, the best state for you is one that honors your service while enhancing your everyday life.

From tax-free pensions to Veteran-rich towns and affordable living, these Retirement Sweet Spots offer more than just perks—they offer peace of mind, purpose, and the freedom to thrive. Now that you know where your benefits stretch further and your quality of life soars, the next move is yours. Choose wisely. Live fully. You’ve earned it.

Suggested reads:

• So You Slept Through Your Transition Assistance Program...Now What?
• Everything You Need to Know to Successfully Navigate the Current Military Retirement System
• Top 10 Military Retirement Gifts Your Military Friends Will Love