Retiring is a big life change because, for many years, the military told you where to live, what to do, and when to move.

But now that you’re a Veteran, you finally get to choose where to settle down. It sounds exciting, but also kind of overwhelming.

There are fifty states, and they are all different when it comes to taxes, healthcare, cost of living, and how they treat Veterans. Wondering where to go next? Join us as we break down the best states for military retirees in 2025.

1. Tax-Friendly States

So the honest truth is, nobody loves taxes. However, some states are actually making it easier to keep more of what you earn. In fact, skipping income tax can make a big difference financially.

Here are the top three states that are tax-friendly for military retirees:

Florida

• Florida doesn't have state income at all, so it’s a really huge win for all workers and retirees. This means that retirement income, such as pensions, Social Security benefits, and withdrawals from IRAs are not taxed at the state level.
• Property taxes are just average, which is rather helpful if you’re looking to buy a home.

Texas

• Texas offers special benefits for Veterans and their families including property tax exemptions. There are no individual state income taxes in Texas.
• Additionally, distributions that are received from the Thrift Savings Plan (TSP) are not taxed.

Tennessee

• Tennessee does not have a general state income tax. This means that military retirees who reside in Tennessee do not have to file an individual state income tax return.

Everyone wants to save a few bucks when possible, as it can change how we reach our goals. This is what makes states with low taxes so great.

2. States With a Low Cost of Living

It’s also important to consider how far your money goes, because the cost of living can be really high with stuff like your rent, groceries, gas, and utilities. Especially with inflation, it can get pretty crazy expensive, quickly.

Mississippi

• In Mississippi, the cost of living is relatively low, falling 10% below the national average. Utility costs are also lower than the average, along with home and rental prices.
• The cost of basic necessities also falls lower than the national average, coming in at around 4% lower than other states.

Arkansas

• Average rent and home prices fall below national averages, which is approximately 14% below the national average.
• The state also is ranked among the top 10 states with the most affordable utilities, with prices for food, gas, internet, and cable falling below the national average. Another check for them!

Indiana

• Indiana as comes in as one of the top states offering low housing costs. Utility costs are less than average, making the winter more manageable.
• Food and grocery prices are also relatively low, along with transportation costs. So, if you don’t own a car, public transportation will save you some money.

Living comfortably is one of everyone’s priorities, and these states will really give you some breathing room if that’s what you’re aiming for.

3. Good Access to Health Care

As Veterans, of course, we also have to consider good healthcare. In these states, you’ll be glad to have easy access to quality health services.

Massachusetts

• Massachusetts is home to a number of famous hospitals and research centers.
• Vets may also be eligible for additional benefits based off their disability rating, service history, or income.

Minnesota

• Minnesota is known for patient satisfaction and low hospital readmission rates.
• The state also has the VA Minneapolis Health Care System, which provides services at 15 locations across the state and Wisconsin. Veterans can also access VA healthcare benefits, include free care for service-connected disabilities.
• Lastly, healthcare is very accessible, even for those who are living outside big cities.

Hawaii

• Hawaii has a pretty organized and efficient healthcare system. The VA Medical Center in Honolulu offers many different services including primary care, specialty care, and mental health services.
• Quick fixes are very common in this state, as they generally focus on long-term wellness.

Make sure to think long-term because being close to reliable medical care is one of the greatest things you can give to yourself.

4. States for Employment

So, you’re retiring from the military. This doesn’t mean that you just want to retire completely and rest. Some still want to find a job, and that’s actually a big deal to them.

There are a lot of opportunities out there, even remote, but living in a state that supports you can help you find a job easily.

Utah

• This state has a growing technology industry, and also a lot of startup activities. Perfect for military retirees who are looking for new career opportunities.
• Besides that, they have the lowest unemployment rates in the U.S., coming in at 3.1%.

North Carolina

• More and more companies are relocating to North Carolina because they have lower costs, which means more companies and more job opportunities.
• The unemployment rate in North Carolina is 3.7%.

Colorado

• Colorado is more for those who value living an outdoor lifestyle. Therefore, the state is very popular for remote workers.
• In fact, approximately 37.34% of Colorado residents report working remotely at least one day a week.

Again, there are a lot of factors to consider when choosing the best states for military retirees, so be sure to decide before moving.

FAQs About the Best States for Military Retirees in 2025

Choosing the best state for you is really hard, we know, so you might still have some questions that are frequently asked, so we’ve gathered them up for you:

Where do most retired military people live?

According to the annual ranking of best states for military retirees by the financial advice website WalletHub, South Carolina is at the top, with 2023 winner Florida and 2022 champion Virginia rounding out the top three finishers.

What state has the best military benefits?

Texas is the #1 state for Veteran benefits because of its generous property tax exemptions for disabled Veterans, which are rated at 10% or more, along with no state income tax and free in-state college tuition for Veterans and their dependents via the Hazelwood Act.

Just keep in mind that where you live affects your future, and so by considering taxes, cost of living, healthcare, and job opportunities, you might be able to determine where you really want to live and retire.

Hopefully, this list of the best states for military retirees will help you with the next chapter of your life.

Read next:

• 4 Organizations Honoring a Legacy of Service This Memorial Day, and All Year
• 10 Best States for Military Retirement (2023 Edition)
• REAL ID is Impacting Travel Rules: Here’s What Veterans Need to Know

Sources:

• Best & Worst States for Military Retirees in 2025 + Memorial Day Facts – WalletHub Reports