10 Best States for Military Retirement (Low Taxes & Cost of Living)

Choosing the right state for your military retirement can have a profound impact on your quality of life, finances, and overall well-being. For service members transitioning into retirement, key considerations include low taxes, affordable cost of living, and access to robust military benefits. In this comprehensive guide, we’ll explore the 10 best states for military retirement, highlighting local insights, points of interest, and the military perks available in each location. Whether you’re seeking a warm coastal haven, a bustling city with a rich military history, or a peaceful community surrounded by nature, there’s a state that fits your lifestyle and financial goals.

Military Retirement Considerations by State

1. Florida

Florida consistently ranks as one of the top states for military retirees, and for good reason. With no state income tax, retirees can keep more of their paychecks. In addition, Florida offers a relatively low cost of living, abundant recreational opportunities, and a strong military community.

Local Insights & Points of Interest

• Warm Climate & Beaches: From the Gulf Coast to the Atlantic shores, Florida’s mild winters and endless summer vibes make it an ideal destination for those looking to enjoy the outdoors. Popular beach towns like Clearwater, Sarasota, and Destin offer an active lifestyle and abundant water sports.

• Retiree Communities: Cities such as Pensacola and Tampa are home to vibrant retiree communities with excellent amenities, healthcare facilities, and a wide range of recreational activities.

• Cultural & Historical Attractions: Explore historic sites like St. Augustine—the oldest city in the U.S.—or visit military museums in Jacksonville and Pensacola that pay tribute to Florida’s strong military heritage.

Military Benefits in Florida

• Property Tax Exemptions: Many counties offer property tax exemptions or credits for veterans and surviving spouses.

• State Veteran Benefits: Florida provides a range of benefits including discounted state park admissions, educational scholarships for dependents, and access to specialized veteran support services.

• Large Military Presence: With numerous active bases and naval facilities, retirees can benefit from continued networking opportunities, support programs, and a sense of community.

2. Texas

Texas is another powerhouse for military retirees, thanks to its no state income tax policy, diverse economy, and affordable housing options. Its warm climate and dynamic cities also contribute to an excellent quality of life.

Local Insights & Points of Interest

• Rich Military History: San Antonio is renowned for its military presence, home to Joint Base San Antonio and the historic Alamo, which attracts history enthusiasts from across the country.

• Cultural Diversity: Cities like Houston, Dallas, and Austin offer a blend of cultural events, world-class dining, and vibrant music scenes. These urban centers also host numerous military events and parades celebrating service members.

• Outdoor Activities: The Texas Hill Country and coastal regions provide ample opportunities for hiking, fishing, and boating. Small towns throughout the state offer a slower pace of life with strong community ties.

Military Benefits in Texas

• Veteran-Friendly Services: Texas provides comprehensive support for veterans, including state-specific healthcare programs, educational benefits, and home loan assistance.

• Tax Breaks & Incentives: Various counties offer tax incentives, and many cities have local programs designed to help veterans with property taxes and business start-ups.

• Networking & Support: With a large military population, Texas has many veteran organizations and support networks, offering everything from career transition resources to social events.

3. South Carolina

South Carolina boasts a low cost of living, favorable tax treatment for military retirement pay, and a mild climate—making it an attractive option for retired service members.

Local Insights & Points of Interest

• Scenic Coastal Living: The state’s Atlantic coastline, including areas like Myrtle Beach and Charleston, offers picturesque beaches, world-class golf courses, and a relaxed lifestyle.

• Historical Charm: Charleston is known for its rich history, stunning architecture, and vibrant arts scene. The city’s historic districts and museums provide plenty of cultural enrichment.

• Outdoor Recreation: In addition to coastal activities, the Blue Ridge Mountains in the upstate region provide excellent opportunities for hiking, camping, and exploring nature.

Military Benefits in South Carolina

• Tax Advantages: The state has favorable tax policies regarding military retirement pay and offers property tax exemptions for disabled veterans and surviving spouses.

• Veteran Assistance Programs: Numerous state and local programs focus on healthcare, employment, and housing for veterans.

• Community Support: South Carolina’s strong military tradition means that veterans enjoy a high level of community support and integration into local social networks.

4. Tennessee

Tennessee is ideal for military retirees due to its no state income tax, affordable housing, and scenic beauty. The state is known for its friendly communities and vibrant culture.

Local Insights & Points of Interest

• Music & Culture: Nashville, the heart of country music, offers a thriving music scene, top-notch dining, and a lively arts community. Nearby cities like Knoxville and Chattanooga add to the state’s cultural richness.

• Natural Beauty: With access to the Great Smoky Mountains and numerous state parks, Tennessee is a haven for outdoor enthusiasts. Activities like hiking, fishing, and camping are easily accessible.

• Historic Sites: The state is rich in history with landmarks such as the Civil War battlefields and the historic districts of Memphis, providing endless opportunities for exploration and learning.

Military Benefits in Tennessee

• Tax Relief: Tennessee’s lack of a state income tax benefits retirees directly, allowing military pensions to go further.

• Veteran Resources: The state offers various programs including discounted property taxes, veteran employment resources, and healthcare assistance programs.

• Community Engagement: With a significant military presence, Tennessee has a network of support groups, veteran organizations, and social clubs dedicated to serving the needs of retired military personnel.

5. Arizona

Arizona offers a warm, dry climate, low cost of living, and numerous tax advantages for military retirees. The state’s scenic desert landscapes and outdoor lifestyle attract those seeking an active, health-conscious retirement.

Local Insights & Points of Interest

• Vibrant Cities & Resort Living: Cities such as Phoenix, Tucson, and Mesa provide a mix of urban amenities and resort-style living. Scottsdale is particularly popular for its upscale communities and golf courses.

• Outdoor Recreation: Arizona is renowned for its natural beauty. The Grand Canyon, Sedona’s red rocks, and numerous state parks offer unparalleled outdoor experiences.

• Cultural Attractions: The state features a rich blend of Native American, Hispanic, and Western cultures, evident in its museums, festivals, and local cuisine.

Military Benefits in Arizona

• Tax-Friendly Policies: Arizona offers tax exemptions on military retirement pay and has a relatively low overall tax burden.

• Veteran Services: The state is known for its robust veteran support system, including specialized healthcare programs, educational benefits, and housing assistance.

• Recreational Discounts: Many attractions and recreational facilities offer discounts for veterans, making it easier to enjoy the state’s natural and cultural resources.

6. Virginia

Virginia provides an attractive mix of historical significance, proximity to military installations, and a moderate cost of living. While some areas might have a higher cost of living, the state’s benefits for military retirees can offset these expenses.

Local Insights & Points of Interest

• Historic & Cultural Richness: Virginia is steeped in American history. Cities like Williamsburg, Richmond, and Alexandria offer a deep dive into colonial and Civil War history, with numerous museums, historic sites, and cultural events.

• Coastal & Mountain Living: From the Chesapeake Bay to the Blue Ridge Mountains, Virginia offers diverse landscapes. Military retirees can enjoy both coastal living and mountain retreats.

• Proximity to Washington, D.C.: The northern part of the state provides easy access to the nation’s capital, with its wealth of cultural institutions, job opportunities, and healthcare facilities.

Military Benefits in Virginia

• Tax Incentives: Virginia offers favorable tax treatment on military retirement pay and property tax relief programs for eligible veterans.

• Comprehensive Veteran Services: The state has an extensive network of veteran support services, including specialized healthcare, employment programs, and legal assistance.

• Active Military Communities: With several military bases and a large veteran population, Virginia offers strong community support and numerous social and recreational opportunities tailored for retired service members.

7. Alabama

Alabama’s low cost of living, mild climate, and welcoming communities make it an attractive option for military retirees. The state’s affordable housing market is especially appealing for those looking to stretch their retirement dollars.

Local Insights & Points of Interest

• Southern Charm & Hospitality: Cities like Huntsville and Mobile are known for their warm, friendly atmospheres and rich cultural heritage. Mobile’s historic districts and annual festivals celebrate the region’s unique history.

• Natural Beauty: Alabama offers a mix of coastal beauty, rolling hills, and forested areas. Outdoor enthusiasts can enjoy activities such as fishing, hiking, and boating along the Gulf Coast.

• Military & Space Heritage: Huntsville, known as “Rocket City,” is home to the U.S. Space & Rocket Center, celebrating the state’s contributions to space exploration and its close ties to military research and development.

Military Benefits in Alabama

• Tax Relief: Alabama provides favorable tax treatment for military retirees, including exemptions on retirement pay for certain groups.

• Veteran Programs: The state offers numerous benefits such as discounted licensing fees, property tax exemptions, and educational support for veterans and their families.

• Community Integration: With a strong sense of Southern hospitality, military retirees often find it easy to integrate into local communities, with ample opportunities for networking and social engagement.

8. North Carolina

North Carolina strikes a balance between a moderate cost of living and favorable tax treatment for military retirees. The state offers a variety of living environments, from coastal communities to vibrant urban centers.

Local Insights & Points of Interest

• Military Hubs: With Fort Bragg near Fayetteville and other military installations across the state, North Carolina has a strong military presence and a supportive environment for veterans.

• Natural & Urban Attractions: Enjoy the beautiful Outer Banks along the coast, the historic charm of Asheville in the mountains, or the urban energy of Charlotte and Raleigh. The state provides something for everyone—be it outdoor adventure, cultural exploration, or bustling city life.

• Rich History & Culinary Scene: North Carolina is known for its barbecue, craft breweries, and historical sites, offering retirees plenty of opportunities to explore local traditions and flavors.

Military Benefits in North Carolina

• Tax Advantages: The state offers several tax benefits for military retirees, including favorable treatment of retirement pay and property tax incentives.

• Veteran Support: North Carolina’s robust network of veteran organizations provides access to healthcare, job training, and legal assistance.

• Active Military Community: The presence of large military installations fosters a strong sense of community and provides retirees with ongoing support and social opportunities.

9. Colorado

While Colorado may have some areas with a higher cost of living, its natural beauty, vibrant culture, and quality of life make it an appealing option for military retirees. Many find that the benefits of an active, outdoor lifestyle and strong community support outweigh the costs.

Local Insights & Points of Interest

• Outdoor Recreation Paradise: Colorado’s landscape is ideal for outdoor enthusiasts. Whether it’s hiking in the Rocky Mountains, skiing in Aspen, or exploring the red rock formations near Colorado Springs, the state offers endless recreational opportunities.

• Military Installations & Veteran Presence: Colorado Springs hosts several military bases, including the U.S. Air Force Academy and NORAD, fostering a strong military community.

• Cultural Richness: Denver and Boulder provide a blend of urban sophistication and outdoor adventure, with a thriving arts scene, innovative cuisine, and numerous festivals throughout the year.

Military Benefits in Colorado

• Property Tax Relief: Certain counties offer property tax reductions for veterans and senior citizens, helping to mitigate the higher cost of living in some areas.

• Veteran Resources: Colorado is well-regarded for its veteran support services, including healthcare programs, job placement assistance, and community outreach initiatives.

• Recreational Discounts: Many state parks, museums, and cultural institutions offer discounted admission for veterans, making it easier to enjoy the state’s attractions.

10. Utah

Utah is an increasingly popular destination for military retirees, thanks to its low cost of living, stunning natural scenery, and a strong sense of community. Its robust economy and affordable housing market make it an attractive choice for those looking to maximize retirement income.

Local Insights & Points of Interest

• Scenic Landscapes: From the majestic red rocks of Moab to the serene beauty of the Great Salt Lake, Utah offers breathtaking natural beauty. Outdoor activities such as hiking, skiing, and mountain biking are a way of life here.

• Family-Friendly Communities: Cities like Salt Lake City and Provo provide excellent educational opportunities, vibrant cultural scenes, and a strong focus on community engagement. The state is known for its safe neighborhoods and high quality of life.

• Cultural & Historical Attractions: Explore the historic Temple Square in Salt Lake City, visit national parks like Zion and Bryce Canyon, or enjoy the numerous cultural festivals that celebrate Utah’s unique heritage.

Military Benefits in Utah

• Tax Exemptions: Utah provides tax benefits on military retirement pay and other veteran incomes, helping to ease the financial burden for retirees.

• Veteran Assistance Programs: The state offers comprehensive veteran services including employment resources, healthcare programs, and educational benefits for veterans and their families.

• Community Integration: Utah’s welcoming communities and active veteran organizations make it easy for retired service members to find support, socialize, and remain engaged in local civic life.

Conclusion

Choosing the right state for military retirement involves balancing a range of factors—tax benefits, cost of living, community support, and lifestyle preferences. Whether you’re drawn to the sun-soaked beaches of Florida, the rich history and culture of Virginia, or the breathtaking natural landscapes of Colorado and Utah, each state on this list offers unique advantages for military retirees.

Take the time to research these states further, visit potential communities, and connect with local veteran organizations for more local insight. With the right preparation and knowledge, you can make an informed decision that maximizes your benefits as a retired service member and sets the stage for a vibrant, secure, and enjoyable retirement.