What state is best for military retirement?

The best states for military retirees often balance tax advantages (especially no state income tax on pensions/pay), strong VA healthcare access, affordable housing, and quality of life, with South Carolina, Florida, Maryland, North Carolina, Alabama, and South Dakota frequently topping lists for 2024-2025 due to their favorable policies, abundant veteran resources, and low cost of living, though priorities like no state income tax point towards others like Texas, Alaska, or Wyoming.

What is the best state to retire from the military?

Pennsylvania is one of the best state for military service members and veterans to retire for many reasons. In addition to being one of the most tax-friendly states for vets, Pennsylvania offers a beautiful landscape, interesting history, rich cultural and recreational opportunities and a low cost of living.

Where is the best place to live for a military retiree?

States that match this criteria include Florida, North Carolina, Pennsylvania, and Alabama. Florida is a perennial favorite state for military retirees, offering zero income tax, military pension exemptions, and easy access to VA facilities. Its military retiree population is one of the highest in the nation.

Which US states do not tax military retirement pay?

The following states do not tax retired military pay:

• Alabama.
• Arizona.
• Arkansas.
• Connecticut.
• Hawaii.
• Illinois.
• Indiana.
• Iowa.

What state loves veterans the most?

Virginia Florida Texas South Carolina Pennsylvania Illinois Maryland North Carolina Alabama Oklahoma Arkansas Hawaii California Kansas New Hampshire What makes a state veteran friendly?

TOP 10 STATES FOR MILITARY RETIREES

What is the veteran 70 40 rule?

The VA 70/40 rule is a guideline for veterans to qualify for Total Disability Individual Unemployability (TDIU), which pays at the 100% disability rate even if their combined rating is lower, allowing them to receive full benefits if their service-connected conditions prevent substantial work. To meet this rule, a veteran needs at least one condition rated 40% or higher, and a combined rating of 70% or more, with at least two service-connected disabilities. 

Where is the best place for the military to retire?

Colorado Springs is one of the best places for military retirement! This city has one of the highest veteran populations in the U.S. and is home to the prestigious United States Air Force Academy, as well as Fort Carson, one of the best military bases in the U.S. for families.

What is the 20-year retirement rule in the military?

In general, Retired Soldiers who have accumulated 20 years of active service are eligible for Retired Pay. (YOS) will receive retired pay equivalent to 60% of final basic pay (50% +10% (2.5% x four years)). Final Pay Plan also includes a Cost-of-Living Adjustment (COLA) - usually annually.

What is the best state to retire to avoid taxes?

What are the best states to retire for taxes on retirement withdrawals? Nine states have no income tax. These are Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. An additional 4 states do not tax income from IRAs.

What is the average life expectancy of a military retiree?

Soldiers' lifespans after retirement vary significantly, but studies suggest average death ages around 67-70 for veterans, though this can be lower than the general population due to service-related factors, while many retirees live well into their 80s and beyond, similar to civilians, with health and lifestyle playing bigger roles than just military service itself. Factors like combat exposure, disability, mental health, and post-service self-care greatly influence longevity. 

Where is the best place for military retirees to live in 2025?

South Carolina scored top honors for the second-straight year in an annual ranking the best states for military retirees, while the Pacific Northwest again found itself at the bottom of the list.

Where do the happiest retirees live in the USA?

Caring.com's 2025 Senior Happiness Index identifies states where seniors are most content, connected, and live longest. Utah is ranked as the happiest state for older adults due to high volunteer rates, good health, and excellent health care access.

What is the #1 retirement state?

There's no single #1 state, as it depends on priorities, but Florida often tops lists for low taxes & warmth (WalletHub, Edelman), while New Hampshire leads for overall well-being, safety, & healthcare (Bankrate), and Wyoming scores high for tax competitiveness (Empower). Other top contenders include Maine, Vermont, Wyoming, Minnesota, and Utah, showcasing a mix of sunny & four-season locations excelling in different factors like affordability, healthcare, or lifestyle.
 

What are the top 3 most military-supported states?

The states with the most total active duty and reserve members of the military, as of September 2017, were: California: 184,540. Texas: 164,234. Virginia: 115,280.

Is military retirement taxed federally?

Yes, standard military retirement pay (based on age/length of service) is generally fully taxable at the federal level, like a pension, but VA disability payments and combat-related disability retirement are usually nontaxable, and your specific state may offer exemptions. The key is separating taxable length-of-service pay from nontaxable VA disability benefits, though some retirees can receive both concurrently, lowering their taxable income.
 

Can I live off $5000 a month in retirement?

To retire comfortably, many retirees need between $60,000 and $100,000 annually, or $5,000 to $8,300 per month. This varies based on personal financial needs and expenses.

What are the biggest mistakes to avoid when retiring?

Here are 10 of the most common.

• Not accounting for longevity. ...
• Not planning for the possibility of early retirement. ...
• Not considering how you'll really spend your time. ...
• Not communicating with your spouse. ...
• Not readjusting your social life. ...
• Not having a housing plan. ...
• Not strategizing for healthy aging.

How much does a retired E7 with 20 years make?

A retired E-7 with 20 years typically makes around $2,800 - $3,500+ monthly (gross) under the older High-3 system (50% of highest 36 months' base pay), but this varies greatly by pay date, final duty station (BAH/BAS), and retirement plan (High-3 vs. Blended Retirement System (BRS), which pays 40% for 20 years), plus optional benefits like SBP and VA disability, with the final amount depending on specific pay charts and years served. 

Which states don't tax military retirement?

Two states recently exempted a portion of military retirement pay and survivor benefits from state income tax, with California enacting a new partial exemption and Vermont increasing the number of retirees and survivors who will qualify for tax relief.

Is it worth it to retire from the military?

Yes, a military retirement is widely considered extremely valuable, often worth millions over a lifetime due to guaranteed, inflation-adjusted pay, comprehensive healthcare (Tricare), and the ability to start a second career with financial security, though the decision depends on individual priorities, sacrifices made (like time away, family impact), and whether one stays under the legacy or Blended Retirement System (BRS). 

What state do most military veterans live in?

Texas has the most veterans by total number, followed closely by Florida and California, with over 1.4 million veterans as of 2024, while states like Alaska, Virginia, and Montana have the highest percentage of veterans in their population. The sheer size of their general populations leads to higher absolute numbers in Texas, Florida, and California, but smaller states with significant military presence or retirement appeal often rank highest for veteran share, notes U.S. News & World Report and this FOX 26 Houston article. 

Do veterans get free iPads with the VA?

The VA program gives qualifying veterans cellular-enabled iPads to access telehealth services; it currently helps more than 50,000 vets across the country virtually connect to VA health care services. It has recently been expanded as a result of the COVID-19 pandemic.

What is the VA age 55 rule?

The VA age 55 rule protects veterans' disability ratings by stopping routine reexaminations once they turn 55, recognizing that conditions are less likely to improve with age, thereby providing stability for retirement; it means the VA generally won't call you in for checkups to lower your rating unless there are "unusual circumstances," like certain cancers or evidence of fraud, but it doesn't automatically make the rating permanent. 

How much disability will I get if I make $60,000 a year?

Someone in their fifties who made $60,000 per year might expect a disability payment of $2,000 per month. You can check your annual Social Security Statement to see your covered earnings history. You'll need to set up an account to see your statement online at my Social Security.