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Where do U.S. military veterans live?

Alaska has the highest per-capita number of resident military veterans, with nearly 9,000 per 100,000 in population. Virginia is second with a per-capita rate of more than 7,800, and South Carolina makes the top 10 with close to 7,000 veterans per 100,000. Three states have more than one million resident veterans: California (1.57M), Texas (1.45M), and Florida (1.44M).

8 states that do not tax any income, including military retirement income:

22 states that already do not tax military retirement income:

5 new states to eliminate tax on military retirement income:

(effective for tax year 2021)

(effective for tax year 2022)

9 states that only partially tax military retirement income with some exemptions and/or credits:

6 states that fully tax military retirement income:

For those veterans who retire from the military but still want to work, nearly all states now have employment-preference programs for veterans. Generally, those apply only to state government jobs, but an increasing number of local jurisdictions and private employers also now have similar programs for former military service members. However, except in those states that have no tax on any earnings, the pay received for those jobs will likely be subject to state income taxes.

Most states now also offer veterans significant discounts or compete for waivers on fees for hunting and fishing licenses, as well as state park admissions. Driver's license fees and vehicle taxes for the honorably discharged are waived in some states, while others offer tax incentives or license fee waivers for veterans who start a business. Many states also have reduced fees or exemptions for veterans taking academic classes or vocational training at state-supported educational institutions. And a significant number of states offer scholarships, grants, and other tuition assistance for the children of qualified veterans who enroll in-state colleges or jobtraining programs.

While military retirement pay is subject to federal income tax, service members should research how their military retirement income will be taxed in the state where they may choose to reside.

In addition to the Veterans Administration resources available at VA.gov, a number of websites like Military.com and MilitaryBenefits.info offer overviews of applicable state taxes and other benefits and links to local agencies in all 50 states plus the District of Columbia, Puerto Rico, and U.S. territories.