A new nationwide analysis has identified the best states in America for military retirees, highlighting where veterans can maximize pensions, access strong health care systems, and build stable civilian lives after service.
The study, conducted by personal finance site WalletHub and released May 18, 2026, compared all 50 states and the District of Columbia across 28 factors, including military pension taxes, VA health care access, employment opportunities, and overall quality of life.
The findings reveal a clear trend: States combining low taxes, strong veteran services, and accessible health care consistently ranked highest.
Here’s a closer look at the top-ranked states—and why they stand out.
1. South Carolina
South Carolina claims the top spot for the third consecutive year, thanks to its all-around performance.
The state offers:
- No taxes on military retirement income
- Strong hiring preferences for veterans
- Programs that help ease their transition into civilian life
With a large veteran population and one of the best VA hospital systems in the country, it also ranks highly for health care, helping retirees access both services and community support.
2. North Dakota
North Dakota excels in economic conditions and health care access, helping it secure second place. The state ranks near the top for hospital availability and VA facilities per capita.
Policies such as veteran hiring preferences and specialized courts also make it easier for former service members to reintegrate into civilian life.
3. Wyoming
Wyoming stands out for its high quality of life, which ranked first overall in the study.
Combined with a relatively low population, open space, and a favorable tax environment, the state offers retirees a quieter lifestyle with fewer financial pressures.
4. New Hampshire
Ranked fifth for economic environment, 11th for quality of life, and 12th for health care, New Hampshire performs strongly across multiple categories—particularly its balanced economic environment and quality of life.
It offers solid job opportunities and a stable environment for veterans seeking post-service careers.
5. Maryland
Maryland’s ranking is largely driven by quality of life, it ranked second, making it an attractive option for retirees.
6. Alaska
Alaska ranks seventh in economic environment and sixth in quality of life and will appeal to retirees who are looking for a strong veteran-support network.
Although it ranks well for veteran population and quality of life, its remote location might not suit everyone.
7. Florida
Florida remains a longtime favorite among retirees. The state has no income tax, meaning military pensions go further.
It also boasts a large veteran community, extensive VA services, and a warm climate, making it both practical and appealing.
8. Massachusetts
Massachusetts ranks first in health care, offering some of the best medical services available to veterans.
Despite its lower quality-of-life ranking (it ranked 50th), its strong health infrastructure helps keep it in the top 10.
9. Minnesota
Minnesota’s strength lies in its high-quality health care system, where it ranks near the top nationally.
While its economic environment is more mixed, its access to care makes it particularly attractive for retirees with ongoing medical needs.
10. South Dakota
South Dakota rounds out the top 10 with a strong balance of job opportunities and low veteran homelessness rates.
Its supportive environment makes it a practical choice for retirees seeking financial stability.
Why These States Stand Out
Across the board, the highest-ranking states share several key traits:
- 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 Worst States for Military Retirees
At the other end of the rankings, several states struggle to provide the same level of support, particularly when it comes to access to health care, economic opportunities, and cost of living.
According to WalletHub, the five worst-performing areas are:
- Oregon (last place)
- Washington
- Vermont
- New Jersey
- District of Columbia
Oregon finished at the bottom (for the third consecutive year, according to Seattle Red), reflecting weak performance across multiple categories, including quality of life and veteran services, leading to a lot of homelessness.
Washington also ranked near the bottom, scoring poorly in VA hospital quality and the availability of medical facilities, both critical factors for retirees who often rely on ongoing care.
The Key Takeaway
For the roughly 1.5 million retired service members across the U.S., choosing where to settle can shape everything from finances to long-term health.
WalletHub’s findings suggest that the best states don’t just offer tax savings—they provide the full package: Economic opportunity, quality health care, and a supportive community for life after service.
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