best states – A new WalletHub analysis released May 18, 2026 ranks South Carolina as the best state for military retirees for the third year in a row, citing no taxes on military retirement income and strong veteran-focused programs. The study compared all 50 states and the
On a quiet retirement day, the question isn’t just where a former service member wants to live—it’s where their pension lasts longer, where care is reachable, and where the transition to civilian life feels less like a cliff.
A nationwide analysis released May 18. 2026 by personal finance site WalletHub set out to answer that. comparing all 50 states and the District of Columbia across 28 factors. Those factors ranged from military pension taxes and access to VA health care to employment opportunities and overall quality of life.
The results point to one recurring theme: states that combine favorable tax treatment with strong veteran services and accessible health care tend to finish at the top.
South Carolina claimed the No. 1 spot for the third consecutive year. The study credits the state with having no taxes on military retirement income. strong hiring preferences for veterans. and programs designed to ease the shift into civilian life. With a large veteran population and one of the best VA hospital systems in the country. South Carolina also ranked high for health care—an advantage that retirees can feel directly. through both medical access and community support.
North Dakota took second place, driven by economic conditions and health care access. The study says North Dakota ranks near the top for hospital availability and for VA facilities per capita. Veteran reintegration is supported through policies such as veteran hiring preferences and specialized courts.
Wyoming ranked first overall for quality of life in the study, a key driver of its No. 3 finish. The analysis points to open space, a relatively low population, and a favorable tax environment as reasons retirees may find a quieter lifestyle with fewer financial pressures.
New Hampshire landed at No. 4. It ranked fifth for its economic environment, 11th for quality of life, and 12th for health care. WalletHub described the state’s job opportunities and stable environment as particularly relevant for veterans planning post-service careers.
Maryland ranked No. 5, with the study attributing much of its performance to quality of life, where it finished second.
Alaska came in at No. 6, appealing to retirees drawn to a strong veteran-support network. The study says Alaska ranks seventh in economic environment and sixth in quality of life, and it also performs well for veteran population and quality of life—though its remote location may not suit everyone.
Florida was No. 7, remaining a longtime favorite among retirees. WalletHub highlighted that Florida has no income tax, meaning military pensions go further. The state also features a large veteran community, extensive VA services, and a warm climate.
Massachusetts ranked No. 8, with the study emphasizing that it ranked first for health care and offered some of the best medical services available to veterans. Even with a lower quality-of-life ranking—50th—its health infrastructure still helped it break into the top 10.
Minnesota placed at No. 9, with its strength tied to high-quality health care, where it ranks near the top nationally. The study describes its economic environment as more mixed, but its access to care makes it attractive for retirees managing ongoing medical needs.
South Dakota rounded out the top 10 at No. 10. WalletHub said the state offers a strong balance of job opportunities and low veteran homelessness rates, describing it as a practical choice for retirees looking for financial stability.
When WalletHub looked across the rankings. it found that high-performing states tend to share the same essentials: favorable tax policies that often exempt military pensions. strong VA health care access and hospital systems. robust job markets with veteran hiring initiatives. and established veteran communities and support services.
At the other end of the map, WalletHub identified five worst-performing areas for military retirees: Oregon (last place), Washington, Vermont, New Jersey, and the District of Columbia.
Oregon finished at the bottom for the third consecutive year. reflecting what the study describes as weak performance across multiple categories. including quality of life and veteran services. leading to a lot of homelessness. Washington ranked near the bottom as well. scoring poorly in VA hospital quality and the availability of medical facilities—critical factors for retirees who often rely on ongoing care.
For the roughly 1.5 million retired service members across the U.S., the study underscores how much can ride on location. WalletHub’s findings suggest that the best states don’t just deliver tax savings. They offer the “full package”: economic opportunity. quality health care. and a supportive community designed to last beyond the service years.
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