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Best & Worst States for Military Retirees (2026)

South Carolina leads the nation for veteran-friendly taxes, housing and health care, according to WalletHub's 2026 ranking.

  • WalletHub, a study publisher, ranked South Carolina as the best state for military retirees in a new report. The study evaluated all states and the District of Columbia based on economic environment, quality of life, and health care factors.
  • Analysts compared states across metrics, prioritizing "Physical and mental health," researchers said. These indicators identify locations where military families can find a comfortable environment for their transition to civilian life.
  • South Carolina does not tax military pensions and supports veteran-owned businesses. The state has the seventh-highest number of veterans per capita, fostering a robust community for those transitioning to civilian life after their service.
  • Rounding out the top rankings, Alabama, the District of Columbia, South Dakota, and Nebraska also provided strong environments for retirees. These locations scored well by providing academic credit for military service and preferential hiring policies for veterans.
  • Many veterans still face challenges such as housing affordability and homelessness. Analysts emphasize that while top states facilitate a smooth transition, finding the right location remains a difficult decision for many families.
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Best and worst states for military retirees, data suggests

WalletHub compared all 50 states and the District of Columbia across 28 key indicators to determine the best states for military retirees.

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Best & Worst States for Military Retirees (2026)

Military families are accustomed to moving, but when it comes time to retire, it can be difficult to decide where to put down roots. For example, veterans must consider state tax policies on military benefits, along with the relative friendliness…

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Helena Independent Record broke the news in Helena, United States on Monday, May 18, 2026.
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