Top 5 Best States for Veterans to Retire in 2026
After years of military service, choosing where to retire can be one of the biggest financial and lifestyle decisions a Veteran makes. While climate and proximity to family certainly matter, Veterans have additional factors to consider, including military retirement taxes, disabled Veteran property tax exemptions, access to VA healthcare, cost of living, Veteran communities, and state-specific benefits.
The good news is that some states go significantly further than others in providing financial advantages and resources for former service members. So, what are the best states for Veterans to retire in 2026?
Based on a combination of Veteran tax benefits, property tax relief, military retirement income policies, healthcare access, Veteran population, and overall retirement appeal, these five states stand out.
-
South Carolina
South Carolina has become one of the strongest retirement destinations for Veterans and military retirees.
In fact, the South Carolina Department of Veterans’ Affairs reported that South Carolina ranked No. 1 for military retirees in a 2026 WalletHub study, which evaluated states based on economic environment, quality of life, and healthcare.
Why South Carolina Is Great for Veterans
One of South Carolina’s biggest advantages is how it treats military retirement income. The state provides a 100% state income tax exemption for military retirement pay, with no earned-income requirement or cap, according to the South Carolina Department of Veterans’ Affairs.
South Carolina also provides significant property tax benefits for qualifying disabled Veterans. Veterans who are totally and permanently disabled may qualify for a property tax exemption on eligible real estate. Recent legislation also expanded certain provisions surrounding when that exemption can be claimed.
Additional advantages include:
- 100% exemption of qualifying military retirement pay from South Carolina income tax
- Property tax exemptions for qualifying permanently and totally disabled Veterans
- A substantial Veteran and military retiree community
- Numerous military installations and Veteran resources
- VA healthcare facilities throughout the region
- Relatively mild winters
- Access to both coastal communities and mountain areas
- Veteran employment and transition programs
South Carolina can be particularly attractive to Veterans who want to remain near military communities while enjoying a lower-cost retirement than many major metropolitan areas.
-
Texas
Texas has long been one of the most popular destinations for Veterans, and its combination of tax advantages and disabled Veteran benefits makes it especially attractive for retirement.
One of the biggest financial advantages is that Texas does not impose an individual state income tax. That means military retirement income isn’t subject to Texas individual income tax. The benefits become even more substantial for Veterans with service-connected disabilities.
According to the Texas Veterans Commission, Veterans with qualifying 100% service-connected disabilities or Individual Unemployability may qualify for a total property tax exemption on their homestead residence. Veterans with lower service-connected disability ratings may qualify for partial property tax exemptions.
Why Veterans Retire in Texas
Texas offers a combination of:
- No individual state income tax
- Significant disabled Veteran property tax exemptions
- Full homestead property tax exemption for certain 100% disabled Veterans
- Large military and Veteran population
- Extensive VA healthcare resources
- Texas Veterans Land Board programs
- Veteran employment resources
- Generally mild winters
Texas also has one of the largest Veteran populations in the country. VA population projections show Texas will remain one of the leading states for Veterans for decades to come. VA Veteran Population Data identifies Texas among the states with the country’s largest Veteran populations. For military retirees who want to stay close to installations, commissaries, military healthcare resources, and other Veterans, Texas offers numerous options.
-
Florida
Florida’s warm weather isn’t the only reason Veterans choose the Sunshine State for retirement. Florida is particularly attractive from a tax perspective because the state does not impose a personal income tax. The Florida Department of Revenue confirms that Florida residents do not file a state personal income tax return. That means military retirement income, Social Security, and other personal retirement income aren’t subject to Florida personal income tax.
Florida Property Tax Benefits for Disabled Veterans
Florida also offers substantial property tax benefits. According to the Florida Department of Veterans’ Affairs, real estate owned and used as a homestead by an honorably discharged Veteran certified as having a service-connected permanent and total disability may qualify for exemption from property taxation, provided applicable requirements are met.
Veterans with service-connected disabilities of 10% or greater may also qualify for a $5,000 property tax exemption. At the same time, additional benefits are available for certain Veterans aged 65 or older with combat-related disabilities.
Florida’s Veteran healthcare infrastructure is another advantage. For example, the VA North Florida/South Georgia Veterans Health System reported serving nearly 197,000 Veterans in 2025 through two medical centers, major outpatient clinics, and community-based clinics.
Why Veterans Retire in Florida
Major benefits include:
- No state personal income tax
- Significant disabled Veteran property tax exemptions
- Large Veteran population
- Extensive VA healthcare network
- Warm climate
- Large number of retirement communities
- Strong Veteran organization presence
Florida is especially attractive for Veterans who prioritize warm weather and proximity to established military communities.
-
Virginia
Virginia deserves serious consideration for Veterans who want to remain connected to the military community after retirement. The Commonwealth has one of the strongest military presences in the country and offers several valuable tax benefits.
According to the Virginia Department of Veterans Services, Virginia allows eligible taxpayers to subtract up to $40,000 in qualifying military benefits, including military retirement income, beginning with tax year 2025 and continuing thereafter under current law.
Virginia Benefits for 100% Disabled Veterans
Virginia’s benefits can be particularly valuable for Veterans rated 100% permanent and total. Qualifying Veterans may receive an exemption from real estate taxes on their principal residence and qualifying land. Certain Veterans rated at 100% because of Individual Unemployability who are also considered permanent and total can qualify as well.
Virginia also provides a personal property tax exemption for one qualifying vehicle owned and primarily used by or for a Veteran rated 100% service-connected, permanent and total.
Why Veterans Retire in Virginia
Virginia offers:
- Up to a $40,000 military retirement income subtraction
- Real estate tax exemption for qualifying 100% P&T Veterans
- Vehicle tax exemption for certain 100% disabled Veterans
- Extensive military infrastructure
- Major Veteran population
- Numerous VA healthcare facilities and resources
- Strong federal and defense-sector employment opportunities for Veterans seeking a second career
Virginia can be an especially good choice for military retirees who aren’t planning to stop working completely. Northern Virginia and Hampton Roads have extensive defense, federal government, intelligence, cybersecurity, and government contracting employment opportunities.
-
North Carolina
North Carolina combines military communities, relatively mild weather, beaches, mountains, and valuable tax benefits for military retirees. One of the state’s most significant changes for military retirees came with its expanded military retirement income deduction.
According to the North Carolina Department of Revenue, military retirement pay may be deducted from North Carolina taxable income for qualifying retirees who served at least 20 years in the uniformed services or were medically retired under Chapter 61.
Disabled Veteran Property Tax Relief in North Carolina
North Carolina also provides property tax relief to qualifying disabled Veterans. According to the North Carolina Department of Military and Veterans Affairs, qualifying Veterans with a permanent and total service-connected disability may receive an exclusion on the first $45,000 of assessed real-property value. Certain surviving spouses may also qualify.
North Carolina is also home to one of America’s largest military communities, with Fort Bragg, Camp Lejeune, Marine Corps Air Station Cherry Point, Seymour Johnson Air Force Base, and other military facilities contributing to a significant Veteran presence throughout the state.
Why Veterans Retire in North Carolina
Benefits include:
- Military retirement income deduction for qualifying retirees
- Disabled Veteran property tax relief
- Multiple VA healthcare facilities
- Beaches and mountains within the same state
- Generally moderate climate
- Numerous communities with established Veteran resources
What Should Veterans Consider Before Choosing a State?
The “best” state for one Veteran may not be the best state for another. A Veteran receiving military retirement pay but without a VA disability rating may prioritize states that eliminate taxes on military retirement income. A Veteran rated 100% P & T may save substantially more by focusing on states offering complete property tax exemptions.
Before relocating, Veterans should compare:
- State taxation of military retirement income
- Property tax exemptions based on VA disability rating
- Cost of housing
- Homeowners’ insurance costs
- Sales and vehicle taxes
- Access to VA hospitals and outpatient clinics
- TRICARE provider availability
- Proximity to military installations
- Commissary and exchange access
- Veteran employment opportunities
- Climate and severe-weather risks
- Benefits available to surviving spouses
Property taxes are particularly important. A state with no income tax isn’t automatically the least expensive place to retire if housing costs, insurance premiums, and property taxes are significantly higher.
Final Thoughts: Where Is the Best Place for Veterans to Retire?
For 2026, South Carolina, Texas, Florida, Virginia, and North Carolina each offer compelling advantages for Veterans entering retirement.
South Carolina provides an impressive combination of military retirement tax treatment, Veteran benefits, and quality of life. Texas and Florida stand out because they don’t impose individual state income taxes and offer substantial benefits to qualifying disabled Veterans. Virginia combines Veteran tax benefits with one of America’s strongest military communities. At the same time, North Carolina offers favorable treatment of qualifying military retirement income along with access to major military and Veteran communities.
Ultimately, Veterans should look beyond weather and housing prices and calculate the total financial value of each state’s Veteran benefits. For a Veteran with a substantial military pension or a high service-connected disability rating, the difference between retiring in one state versus another can potentially amount to thousands of dollars each year.
Before relocating, Veterans should verify current eligibility requirements with the state’s Department of Veterans Affairs or Department of Revenue because tax laws, exemptions, and eligibility requirements can change year to year.
