15 Best States for Military Retirees [2023 Data]

 

Veterans have their own unique considerations to make the most of their retirement. Many military families move frequently, so you’re probably looking for the best place to settle once and for all.

At UpHomes, we’re passionate about helping veterans find their perfect home, wherever that might be. That’s why we’re sharing the best states for military retirees. We looked into eight key factors veterans might want in a home state:

 

• Veteran poverty rate

• VA expenditure per veteran

• Percent population with veteran status

• Cost of living

• Maximum retirement pay tax rate

• Veterans per VA medical facility

• Percent population age 65+

• Veteran unemployment rate

 

Keep reading to see how each state compares and learn more about what makes a state favorable for veterans.

 

1. Wyoming

 

Veteran population: 9.2%

Veteran poverty rate: 7.3%

When you’re looking for a place to retire, Wyoming tops our list in terms of veteran-friendliness. There is no retirement pay tax in the state, and it has the best ratio of veterans to VA medical facilities on our list.

It also has the fifth-lowest veteran unemployment rate and fourth-highest veteran population rate, showing that Wyoming values citizens with military careers. The cost of living is also 2.5% below the national average, making Wyoming a great place to retire.

2. West Virginia

 

 

Veteran population: 7.6%

Veteran poverty rate: 9.6%

West Virginia is another popular choice for retirement, considering over one-fifth of the population is 65 years or older. What earns this state the second spot on our list? West Virginia invests in military retirees and spends the second most per veteran on our list. It also has the sixth best ratio of veterans to VA facilities.

Pair all this with a low cost of living (over 20% below the national average!) and you might just contemplate browsing homes in West Virginia when you’re planning retirement.

3. Maine

 

Veteran population: 8.8%

Veteran poverty rate: 7.2%

Branching into the Northeast, Maine is one of only two East Coast states that earn a top spot on our list. This state is known for its slow lifestyle and scenic views, so it’s no surprise that it has the highest percentage of retirement-age residents in the country.

Although the maximum retirement pay tax is a bit higher here at 7.2%, the cost of living is still below the national average. Maine also ranks eighth in its veteran-to-VA-facility ratio and 15th in its VA expenditure per veteran, which earns it the third spot on our list.

4. North Dakota

 

Veteran population: 6.9%

Veteran poverty rate: 6%

North Dakota is a great choice that checks many boxes for veterans who are looking for a good quality of life as they enter retirement. Though it doesn’t have a large retirement-age population compared to other states on our list, the Peace Garden State has the fourth lowest veteran unemployment rate and sixth lowest veteran poverty rate.

Although the veteran population is relatively low at 6.9%, North Dakota has the second best ratio of veterans to VA facilities on our list, which makes it the fourth best choice for military retirees overall.

5. South Dakota

 

Veteran population: 8.1%

Veteran poverty rate: 9.3%

South Dakota is one of the eight states that doesn’t have a retirement pay tax in the United States. It also has the ninth highest veteran population rate and a cost of living that’s 10.7% below the national average.

South Dakota really shines when it comes to its veteran-to-VA-facility ratio, settling in at fourth place. These factors are all what makes South Dakota the fifth best state for military retirees in the country.

6. New Hampshire

 

Veteran population: 7.8%

Veteran poverty rate: 6.1%

New Hampshire might have a relatively high cost of living at 5.8% above the national average, but it also has the lowest veteran unemployment rate of any state. Despite the high cost of living, this state still has the 10th lowest veteran poverty rate.

Retire to New Hampshire to benefit from the scenery, with famous peaks, gorges, and even parts of the Appalachian Trail. New Hampshire is also known for an abundance of winter sports. Whether you spend your time on the slopes or in the lodge, New Hampshire is a peaceful place to be.

7. Arkansas

 

Veteran population: 7.7%

Veteran poverty rate: 9.4%

Arkansas doesn’t have a huge veteran population, with just 7.7% of residents identifying as veterans. But that doesn’t mean it's not a great place to retire after a military career.

Arkansas has the fifth highest VA expenditure and the lowest cost of living of any state, earning it seventh place on our list.

8. Montana

 

Veteran population: 9.4%

Veteran poverty rate: 6.8%

Montana is a popular state for retired military personnel, with the third highest percentage of veterans in the country. It’s a popular state for retirees in general, with 19.6% of the population age 65 or older.

Montana also has the third best ratio of VA facilities to veterans in the country, and the cost of living is the same as the national average, making Montana an appealing state for veterans and eighth on our list.

9. Oklahoma

 

Veteran population: 8%

Veteran poverty rate: 8.3%

The Sooner State comes in 10th on our list of the best states for military retirees. Here, the veteran population hits 8% and the cost of living is almost 18% lower than the national average.

Oklahoma also spends the fourth most per veteran in the country on VA services. It’s famous for its cowboy culture, Native American heritage, and being home to the largest stretch of Route 66. This makes Oklahoma perfect for an adventurous retirement.

10. Tennessee

 

Veteran population: 7.3%

Veteran poverty rate: 7.5%

Tennessee has no state retirement pay tax, making it a great place to move if you worry about protecting your pension and other retirement income. Its cost of living is also 10.1% below the national average. 

Life in Tennessee is perfect for music lovers, with famed attractions like the Country Music Hall of Fame and the Grand Ole Opry. When you retire in Tennessee, you'll never tire of the local country music scene, featuring big names and up-and-coming artists alike.

11. Nebraska

 

Veteran population: 7.4%

Veteran poverty rate: 6.4%

Nebraska is a great low-cost place for veterans to live. Not only is it the second cheapest state to buy a house, but it’s got a cost of living 12.2% lower than the national average and the third lowest veteran unemployment rate in the country.

Nebraska is perfect for retirees looking to enjoy some peace and quiet outdoors. It’s known for its many beautiful state parks, where residents can partake in hiking, camping, and other activities throughout the year.

12. New Mexico

 

Veteran population: 7.9%

Veteran poverty rate: 8.8%

New Mexico has a relatively high retirement-age population at 18.5% with a 7.9% veteran population rate. It has the 13th highest VA expenditure per veteran and the 10th best ratio of veterans to VA facilities in the country.

New Mexico is also a great place for history buffs, where they can explore the roots of Pueblo architecture and check out the strong music and arts scene in Santa Fe. It’s also an ideal place for foodies, where you can find cuisine from Spain, Mexico, and over 20 different indigenous nations.

13. Alabama

 

Veteran population: 8.1%

Veteran poverty rate: 8.4%

Alabama has the ninth highest veteran population rate, is the 12th most affordable state to buy a house, and has the 10th lowest cost of living in the United States. These factors make it the 13th most veteran-friendly state in the country for retirement.

Alabama is known for its temperate climate, so it’s a great place to move when you want to trade cold winters for more sunny, warm days.

14. Missouri

 

Veteran population: 7.5%

Veteran poverty rate: 7.2%

Missouri has middle rankings on all our data points with a low cost of living (14.4% below the national average), which makes it the 14th best state for military retirees.

Missouri is a big state for sports fans, and even hosted the first Olympics in the United States in 1904. It’s home to professional major league teams in baseball, hockey, and soccer, not to mention the 2023 Super Bowl winners!

15. Ohio

 

Veteran population: 6.8%

Veteran poverty rate: 8%

Ohio rounds out our list at number 15. It matches Missouri with its retirement-age population, but it has a lower veteran population rate and a slightly higher cost of living.

Ohio is home to top-rated attractions like the Pro Football Hall of Fame, Rock & Roll Hall of Fame, and the Cleveland Museum of Art, so you’ll find plenty of ways to spend your retirement no matter what you’re interested in.

Other State Rankings

Wondering how your state matches up? Here’s the rest of our rankings of states (and one district) for veterans to retire.

 

16. Alaska

17. Iowa

18. Idaho

19. Vermont

20. Florida

21. Virginia

22. Mississippi

23. Arizona 

24. South Carolina

25. Hawaii

26. North Carolina

27. Kansas

28. Washington 

29. Indiana

30. Wisconsin

31. Texas

32. Nevada

33. Pennsylvania

34. Kentucky

35. Maryland

36. Utah

37. Georgia

38. Minnesota

39. Massachusetts

40. Louisiana

41. Michigan

42. Colorado

43. Delaware

44. Rhode Island

45. Oregon

46. Illinois

47. Connecticut

48. District of Columbia

49. New Jersey

50. New York

51. California

VA Loans and Mortgages

VA loans are mortgages that are only available to active military personnel, veterans, and veterans’ spouses. These loans have key benefits such as:

 

• No down payment

• Lower interest rates

• Fewer closing costs

• No requirement for private mortgage insurance

 

These benefits keep costs relatively low for veterans and help more military personnel become homeowners. Just like regular mortgages, VA loan rates change daily, but they’re generally lower than traditional mortgage rates.

As of the time of writing, the national average rate for a 30-year fixed mortgage is 6.28%.

Methodology

To create our list of states that are best for military retirees, we evaluated factors that affect veterans’ quality of life and created a weighted scale. We compiled data from the U.S. Census Bureau, U.S. Department of Veterans Affairs, Kiplinger, and Best Places, using these factors:

 

• Veteran poverty rate - 15%

• VA expenditure per veteran - 15%

• Percent population with veteran status - 12.5%

• Cost of living -  12.5%

• Maximum retirement pay tax rate - 12.5%

• Veterans per VA medical facility - 12.5%

• Percent population age 65+ - 10%

• Veteran unemployment rate - 10% 

Ease Into Retirement With UpHomes

The transition to retirement can be hard for some veterans. Let UpHomes guide you through your search for your next home and help you buy a house in a state that works for you.