Best States
for Veterans
Florida (100), Texas (98) and Alabama (95) rank as the three best states for veterans on this page's 100-point score, based on 2025 benefits data. California (42), Vermont (48) and Rhode Island (49) rank lowest. 40 of 50 states exempt military retirement pay from income tax, and 7 give 100% disabled veterans a full property tax exemption.
40
States exempt military retirement pay
7
States with full property tax exemption
9
States with excellent VA access
9
States with no income tax at all
Top and bottom states
The five highest-scoring states for veterans are Florida (100), Texas (98), Alabama (95), Kansas (94) and Arkansas (92). 5 of the five exempt military retirement pay from state income tax, and 5 give 100% disabled veterans a full property tax exemption.
The five lowest-scoring states are California (42), Vermont (48), Rhode Island (49), Delaware (51) and Oregon (56). 5 of the five tax military retirement pay, and 5 stop short of a full property tax exemption.
Top 10 Veteran-Friendly States
Florida
9.2% veterans · 100% disabled: full property tax exempt
Texas
8.1% veterans · 100% disabled: full property tax exempt
Alabama
8.4% veterans · 100% disabled vets: full exemption
Kansas
9.1% veterans · 100% disabled: full exemption
Arkansas
8.1% veterans · 100% disabled: full exemption
New Mexico
9.9% veterans · Disabled vet property tax exemption
Arizona
10.2% veterans · Disabled vets: property tax reduction
North Carolina
8.5% veterans · 100% disabled: full property tax exempt
Alaska
12% veterans · Up to $150K exemption for disabled vets
Hawaii
9.4% veterans · Disabled vet property tax exemption
All 50 States — Full Ranking
How we rank
Each state gets a score out of 100 built from five parts. Property tax relief for disabled veterans: 30 points for a full exemption, 15 for a partial one, none for disability-only or no exemption. Military retirement pay exempt from state income tax: 25 points. Active-duty pay exempt from state income tax: 15 points. VA facilities access, rated 1 to 10 in our data, counts double, so up to 20 points. Veteran share of the population counts 1.5 points per percentage point, capped at 12 percent, so up to 18 points. The total is rounded and capped at 100. Sources: VA.gov, Military.com State Benefits Guide, Tax Foundation; benefits data updated 2025.
Sources: VA.gov, Military.com State Benefits Guide, Tax Foundation. Benefits data updated 2025. Benefits change — verify current eligibility with your state's veterans affairs office before making relocation decisions.