Best and Worst States for Military Retirees in the U.S.

A recent national analysis has pinpointed the top states in the U.S. for military retirees, focusing on maximizing pensions, accessing quality health care, and establishing stable civilian lives. Conducted by personal finance website WalletHub and published on May 18, 2026, the study evaluated all 50 states and the District of Columbia across 28 metrics. These included military pension taxes, VA health care access, employment opportunities, and overall quality of life.

The Top-Ranked States

The study highlights a clear trend among the top-ranking states: a combination of low taxes, robust veteran services, and accessible health care. Here is a detailed overview of the highest-ranked states and their standout features:

1. South Carolina

For the third year running, South Carolina takes the top spot. The state excels in several areas:

• No taxes on military retirement income
• Strong hiring preferences for veterans
• Programs that support the transition to civilian life

With a significant veteran population and an exceptional VA hospital system, South Carolina also ranks high in health care, aiding retirees in accessing essential services and community support.

2. North Dakota

North Dakota is notable for its economic conditions and health care access, securing the second position. The state ranks high for hospital availability and VA facilities per capita. Veteran hiring preferences and specialized courts further ease the reintegration of former service members into civilian life.

3. Wyoming

Wyoming offers a high quality of life, ranked first in the study. The combination of a small population, open spaces, and favorable tax environment provides retirees with a quieter lifestyle and reduced financial stress.

4. New Hampshire

New Hampshire ranks fifth for economic environment, 11th for quality of life, and 12th for health care. It excels in delivering job opportunities and a stable setting for veterans seeking post-service careers.

5. Maryland

Maryland’s strengths lie in quality of life, where it ranks second. This makes it an appealing option for retirees seeking a supportive environment.

6. Alaska

Alaska stands seventh in economic environment and sixth in quality of life. It appeals to retirees looking for a robust veteran-support network. However, its remote location may not be suitable for everyone.

7. Florida

Florida is a popular choice among retirees. The absence of income tax enhances the value of military pensions. It also offers a large veteran community, extensive VA services, and a warm climate.

8. Massachusetts

Massachusetts ranks first in health care, providing some of the best medical services for veterans. Although its quality of life is lower, strong health infrastructure boosts its ranking.

9. Minnesota

Minnesota benefits from a high-quality health care system, ranking near the national top. While its economic environment is mixed, health care access is a significant draw for retirees with ongoing medical needs.

10. South Dakota

South Dakota completes the top 10, with a strong balance of job opportunities and low veteran homelessness rates. Its supportive environment offers financial stability to retirees.

Key Traits of Top States

The highest-ranking states share several important attributes:

• Favorable tax policies, often exempting military pensions
• Strong VA health care access and hospital systems
• Robust job markets and veteran hiring initiatives
• Established veteran communities and support services

The Lowest-Ranked States

Several states lag behind in providing sufficient support, particularly in health care access, economic opportunities, and cost of living. WalletHub identified the five lowest-performing areas:

• Oregon (last place)
• Washington
• Vermont
• New Jersey
• District of Columbia

Oregon remains at the bottom, reflecting poor performance in quality of life and veteran services, leading to elevated homelessness. Washington also scores low in VA hospital quality and medical facility availability, key factors for retirees relying on regular care.

Choosing the Right State

For approximately 1.5 million retired U.S. service members, selecting a settlement location impacts finances and long-term health. WalletHub’s findings indicate that the best states provide more than tax savings; they offer economic opportunity, quality health care, and a supportive community for life after service.