Best States for Military Retirees in 2025: South Carolina, Maryland, and New Hampshire Lead the Way

As America prepares to honor its heroes this Memorial Day and beyond, a new report from WalletHub sheds light on where military retirees are most likely to find support, stability, and opportunity after their service. According to the 2025 ranking of Best and Worst States for Military Retirees, South Carolina takes the top spot, followed closely by Maryland and New Hampshire.

The study, led by WalletHub Managing Editor John S. Kiernan, evaluated all 50 states and the District of Columbia across 28 key metrics. These included the share of veteran-owned businesses, job opportunities for veterans, state tax policies on military pensions, availability of VA health care, and the prevalence of support programs for returning service members. The goal: to assess which states best help veterans transition into civilian life and thrive long term.

South Carolina ranked first overall due to a combination of economic incentives and support systems. The state does not tax military pensions, allows veterans hiring preferences in the private sector, and operates treatment courts for justice-involved veterans. It also boasts some of the highest-rated VA hospitals in the country and the second-most veteran-owned businesses per capita—signs that South Carolina is not only welcoming to veterans but also empowers them to succeed.

Maryland came in second, offering a strong mix of education, employment, and healthcare benefits for veterans. The state has one of the highest concentrations of VA Benefits Administration facilities, provides academic credit for military experience, and allows for hiring preferences. Maryland partially exempts military pensions from taxation and ranks high for veteran job opportunities.

But it was New Hampshire that earned special attention this year, coming in third overall. The state leads the nation in veteran job opportunities and exempts military pensions from state income tax entirely. It also ranks second nationally for the share of veterans not receiving SNAP benefits, a sign of economic stability among its veteran population. The Granite State supports veterans with treatment courts, credit for military experience in higher education, and generous Department of Defense contract funding per capita.

According to the NH Journal, Gov. Kelly Ayotte welcomed the ranking, stating, “Coming from a military family, honoring those who have served our nation is very important to me, and I’m proud of the way we care for veterans in our state. We’re going to keep working every day to make sure New Hampshire is the most veteran-friendly state in the nation.”

State Senate President Sharon Carson, a retired first sergeant in the Army Reserve, echoed those sentiments in an interview with the NH Journal, calling the ranking “more proof that New Hampshire is a leader in the nation.”

Other states that performed well included North Dakota (4th), Virginia (5th), and Alaska (6th), each with strong showings in healthcare quality, veterans per capita, and job markets tailored to those with military experience.

At the bottom of the list were Washington (50th) and Oregon (51st), with poor rankings in quality of life and healthcare accessibility for veterans. New Jersey, Vermont, and Rhode Island also ranked low, due in part to limited VA infrastructure, high tax burdens, and fewer economic incentives for former service members.

WalletHub analyst Chip Lupo noted that “transitioning from military to civilian life isn’t easy, but the best states for military retirees make that adjustment as smooth as possible. In addition to providing the conditions necessary for our veterans to thrive financially, they also have ample resources for taking care of military retirees’ physical and mental health.”

Data for the report was compiled from a variety of sources, including the U.S. Department of Veterans Affairs, the U.S. Census Bureau, the Department of Defense, and WalletHub’s own studies on tax rates, healthcare quality, and university systems. Rankings were determined by weighted scores across three core areas: economic environment, quality of life, and healthcare.

This year’s findings serve as a reminder that support for veterans extends far beyond national holidays—it shows up in job offers, tax breaks, accessible healthcare, and community integration. For military retirees looking to build their next chapter, where they call home can make all the difference.