54 Jurisdictions · Cited to State DVAs
Where should you retire as a vet?
Every state offers something for veterans; the spread is wider than most people realize. Texas pays 150 free college credits transferable to a child. Massachusetts pays needs-based monthly cash assistance. Alabama exempts your home and 160 acres from property tax if you're 100% P&T. Vermont caps your AGI before the retirement exemption phases out. California still taxes your military retirement. The card for your state shows the current benefits + the official state DVA link to verify.
53
Jurisdictions
50 states + DC + 3 territories
31
Fully exempt retirement
of those with income tax
9
No state income tax
moot question entirely
2
Still fully tax retirement
California + DC
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Military retirement tax
53 OF 53 JURISDICTIONS · 50 STATES + DC + PR + GUAM + USVI
Frequently asked
Which states do NOT tax military retirement income?
Most don't. As of 2026, only TWO jurisdictions still fully tax military retirement without a meaningful exemption: California (small $20K exclusion gated by income) and the District of Columbia. Nine states have no income tax at all (AK, FL, NV, NH, SD, TN, TX, WA, WY). The remaining ~40 states either fully exempt military retirement or grant a partial exemption (some, like Vermont, with AGI cliffs; others, like Idaho, gated by age 65+).
What's the most generous state for veterans overall?
Depends on your situation. For pure retirement-income tax, the 9 no-income-tax states win automatically. For 100% P&T disabled veterans, several states (FL, TX, AL, AR, SC, LA, MS, NJ, MD, PA, MI, NE, OK) offer FULL property tax exemption on the primary residence — that's often worth $5,000-$15,000 a year. For state-funded tuition for the veteran or their children, Texas (Hazlewood Act, 150 transferable credit hours) and Illinois (IVG, full tuition + fees) lead. For monthly cash assistance, Massachusetts Chapter 115 stands alone.
Do I have to live there to claim benefits?
For most state benefits, yes — you must be a resident. Property tax exemptions specifically require you to own a primary residence in the state. State veteran home admission usually requires 90 days to 3 years of state residency. State income tax exemption requires you to be a tax resident — your State of Legal Residency for military pay purposes (SCRA-controlled) is what counts during active duty.
How do I change my State of Legal Residency to a tax-favored state?
SCRA lets you maintain SLR in any state where you have a physical presence with intent to make it your permanent home — typically by getting a driver's license, registering to vote, paying state taxes, and acquiring a domicile there. The 2022 Veterans Auto and Education Improvement Act (VAEIA) lets military spouses elect to share their service member's SLR. Common SLR moves: from a high-tax state to FL / TX / NV during a duty assignment. Be cautious — your existing state may aggressively contest the change.
Are these benefits stackable with federal VA benefits?
Yes. State benefits are entirely separate from federal VA disability, GI Bill, or healthcare. Most stack cleanly — for example, a 100% P&T disabled veteran in Texas can collect federal VA compensation AND state property tax exemption AND Hazlewood Act tuition AND state hiring preference. Some state benefits (notably property tax exemptions) require your federal VA disability rating as the trigger — they piggyback on the federal determination rather than running their own.
When was this last updated?
All entries verified 2026-05. State legislatures pass new veteran benefits every session — Puerto Rico just added a full military retirement exemption (Law 191 of 2024, effective 2025). For high-stakes decisions (relocation, retirement planning), verify the current state of any specific benefit against the state DVA URL we link on each card. Many dollar amounts adjust annually with the VA comp rate or state inflation indexing.