Where you choose to live after the military can have a massive impact on your finances, access to healthcare, and overall quality of life. Some states roll out the red carpet for veterans with tax-free military retirement pay, generous property tax exemptions, and strong veteran employment programs. Others offer very little. We evaluated all 50 states across five key criteria and narrowed it down to the top 10 best states for veterans to call home in 2026.
How We Ranked the States
Each state was scored on five factors weighted by importance to the average transitioning veteran:
- State income tax on military retirement pay — Does the state tax military retirement income? States with no income tax or full exemption score highest.
- Property tax exemptions for veterans — Many states offer partial or full property tax exemptions for disabled veterans. The generosity of these programs varies widely.
- Veteran employment preference — State and local government hiring preferences, veteran-owned business incentives, and occupational license reciprocity.
- Quality of VA healthcare — Proximity to VA medical centers, wait times, patient satisfaction scores, and availability of community care.
- Cost of living — Housing, groceries, transportation, and overall affordability relative to average veteran income.
Comparison Table
| Rank | State | Income Tax on Mil. Retirement | Property Tax Exemption | Vet Employment | VA Healthcare | Cost of Living |
|---|---|---|---|---|---|---|
| 1 | Texas | No state income tax | 100% disabled: full exemption | Strong | Excellent | Moderate |
| 2 | Florida | No state income tax | 100% disabled: full exemption | Strong | Good | Moderate |
| 3 | Virginia | Exempt | 100% disabled: full exemption | Excellent | Excellent | Moderate-High |
| 4 | Nevada | No state income tax | Partial for disabled | Good | Good | Moderate |
| 5 | Tennessee | No state income tax | Partial for disabled | Good | Good | Low |
| 6 | Colorado | Exempt under 55; partial 55+ | 100% disabled: full exemption | Excellent | Good | Moderate-High |
| 7 | South Dakota | No state income tax | Partial for disabled | Moderate | Good | Low |
| 8 | Wyoming | No state income tax | Partial for disabled | Moderate | Fair | Low-Moderate |
| 9 | Alaska | No state income tax | Partial for disabled | Good | Fair | High |
| 10 | New Hampshire | No tax on earned income | Full for 100% disabled | Good | Good | Moderate-High |
1. Texas
Texas consistently tops the list for veterans and for good reason. There is no state income tax, so your military retirement pay and civilian salary keep more in your pocket. Veterans with a 100% disability rating receive a full property tax exemption on their homestead. The state has one of the largest veteran populations in the country, meaning robust VA medical infrastructure with major VA medical centers in Houston, Dallas, San Antonio, and Austin. The Texas Veterans Commission provides strong employment assistance, and the cost of living outside of Austin remains very reasonable. The job market is diverse and strong, particularly in technology, energy, defense contracting, and healthcare.
2. Florida
Florida shares the no-income-tax advantage with Texas and adds excellent weather, no estate tax, and a large and active veteran community. Disabled veterans with a 100% rating get a full homestead property tax exemption. The state has numerous VA medical centers and clinics, and the Florida Department of Veterans Affairs offers state-run nursing homes and domiciliary care. Military bases throughout the state mean a strong defense-sector job market, and the cost of living is moderate, though it has risen in popular metro areas like Tampa and Jacksonville.
3. Virginia
Virginia exempts military retirement pay from state income tax and offers a full property tax exemption for 100% disabled veterans. What sets Virginia apart is its unmatched proximity to federal jobs, defense contractors, and the Pentagon. The Northern Virginia corridor is one of the highest-paying job markets in the country for veterans, especially those with security clearances. The VA healthcare system in Virginia is among the best, with the Richmond VA Medical Center and the Hampton VA Medical Center both receiving high marks. The cost of living in Northern Virginia is high, but other parts of the state are very affordable.
4. Nevada
Nevada has no state income tax and offers property tax exemptions for disabled veterans. The veteran population is well-served by the VA Southern Nevada Healthcare System in Las Vegas and the VA Sierra Nevada Health Care System in Reno. The cost of living is moderate by western-state standards, and the job market is growing, particularly in logistics, technology, and hospitality. Nevada also offers excellent occupational license reciprocity for military spouses and veterans.
5. Tennessee
Tennessee charges no state income tax and has one of the lowest costs of living among our top 10. Disabled veterans receive property tax relief, and the state offers a veteran employment preference for state government jobs. The Tennessee Valley Healthcare System and the Memphis VA Medical Center provide solid VA healthcare coverage. Nashville has become a booming job market with opportunities in healthcare, technology, and finance, while still maintaining a reasonable cost of living compared to other growing cities.
6. Colorado
Colorado exempts military retirement pay from state income tax for retirees under age 55 and offers partial exemptions for those older. The state provides a full property tax exemption for 100% disabled veterans. Colorado Springs is home to multiple military installations and a thriving defense contractor community, making it an ideal location for veterans seeking cleared positions. The VA Eastern Colorado Health Care System is well-regarded. The cost of living is moderate to high depending on location, but the quality of life, outdoor recreation, and veteran community make it a top choice.
7 through 10: South Dakota, Wyoming, Alaska, New Hampshire
These four states round out our top 10, each offering no state income tax (or, in New Hampshire's case, no tax on earned income). South Dakota and Wyoming stand out for their exceptionally low cost of living, though VA healthcare access can require longer travel times due to fewer facilities. Alaska offers the unique Permanent Fund Dividend (an annual check to all residents) plus veteran property tax exemptions, but the high cost of living and remote location are trade-offs. New Hampshire provides a full property tax exemption for 100% disabled veterans, a strong veteran community, and proximity to the Boston job market without Massachusetts income taxes.
What About Your Situation?
The best state for you depends on your individual circumstances. A 100% disabled veteran will weigh property tax exemptions and VA healthcare access more heavily than someone with no disability rating. A veteran with a security clearance might prioritize Virginia or Colorado over a low-cost-of-living state with fewer defense jobs. Consider your family situation, career goals, proximity to extended family, climate preferences, and whether you plan to use VA healthcare heavily or rely on employer-provided insurance.
Use our State Benefits Comparison Tool to compare specific benefits by state, and check out our Resource Map to find VA facilities, Vet Centers, and veteran service organizations in the states you are considering.
The Bottom Line
Texas, Florida, and Virginia lead the pack for veterans in 2026 due to their combination of tax advantages, strong VA healthcare systems, robust job markets, and veteran-friendly policies. But the best state for you is the one that aligns with your unique priorities, career plans, and family needs. Do your research, visit before you commit, and take advantage of every benefit your new state offers.