A BASIC GUIDE TO THE BEST STATES FOR MILITARY RETIREES IN 2025

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. So, if you’re wondering where to go next, we are breaking down which are the best states for military retirees in 2025.

1. Tax-Friendly States

So the honest truth is, nobody loves taxes, and you could be paying even way more, but some states are actually making it easier to keep more of what you earn because skipping income tax can make a big difference to your finances.

Here are the top three states that are tax-friendly:

• Florida
  1. They don’t have state income at all, so it’s a really huge win for all workers and retirees
  2. Property taxes are just average, so they're still helpful for you if you’re buying a home
• Texas
  1. They also don’t tax your income, although the property taxes are higher
• Tennessee
  1. They just recently decreased all income tax and really try to keep all taxes low, and that’s a plus for everyone

Everyone wants to save a few bucks because it can change how we reach our goals, so states with low taxes are really helpful.

2. Choosing 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, so it’s really getting pretty crazy expensive out there.

• Mississippi
  1. The housing is actually pretty cheap in the country, honestly speaking
  2. Basic things that are needed daily are just at a low cost
• Arkansas
  1. Rent and home prices are below national averages, which is a pretty great catch if you ask
  2. Low prices for food and gas, another check for them
• Indiana
  1. Manageable utility costs even in winter
  2. If you don’t own a car, public transportation will save you money here

Living comfortably is one of everyone’s priorities, so 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, and with these states, you’ll be glad that they have easy access to good healthcare.

• Massachusetts
  1. Famous hospitals and research centers are based here
  2. They have solid public health programs, so it’s easy to access care
• Minnesota
  1. They are known for patient satisfaction and low hospital readmission rates
  2. Healthcare is accessible even for those who are living outside big cities
• Hawaii
  1. They have a pretty organized and efficient healthcare system
  2. Quick fixes are not for them because they 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, but it doesn’t mean 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
  1. They have a growing technology industry and also a lot of startup activities.
  2. Besides that, they have the lowest unemployment rates in the U.S.
• North Carolina
  1. More companies are relocating here because they have lower costs, which means more companies and more job opportunities.
• Colorado
  1. Colorado is more of an outdoor lifestyle, so it’s really popular for remote workers.

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.

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Sources:

• 10 Best States for Military Retirement (2023 Edition)
• Best & Worst States for Military Retirees in 2025 + Memorial Day Facts – WalletHub Reports