Choosing where to live after military service can come down to more than just finding a new home. Taxes, job opportunities, health care and the cost of everyday life can all make a difference—and a new study has identified one state that stands out for veterans in 2026.
According to research from Disability Denials, North Dakota is the best state for veterans to settle down, ranking No. 1 among all 50 states and Washington, D.C., based on a combination of financial stability, health care access and quality-of-life measures.
The state’s strongest selling point may be its job market. North Dakota has a veteran unemployment rate of just 1.37%, the lowest in the country, according to the study. Veterans there also benefit from military retirement pay that is fully exempt from state income tax, while the cost of living is about 11% below the national average.
Veterans in North Dakota have a median income of $51,844, and 6.8% live below the poverty line. The state also ranks near the top for access to Department of Veterans Affairs medical care, with 23.7 VA medical centers and clinics per 100,000 veterans.
South Dakota takes the No. 2 spot, helped by its lack of a state income tax and a veteran median income of $56,096. Nebraska ranks third, with a veteran poverty rate of 6% and military retirement pay exempt from state income tax.
Wyoming comes in fourth and stands out for its access to VA care. The state has 33.9 VA medical centers and clinics per 100,000 veterans, the highest rate in the study. It also has no state income tax and ranks among the states with the cleanest air.
Rounding out the top five is Hawaii, which earns high marks for health and environmental factors. Residents who reach age 65 can expect to live another 20.5 years, the longest life expectancy at 65 in the country, according to the report. Hawaii also recorded good air quality on 93.8% of monitored days.
The study considered military retirement taxes, veterans’ income and poverty rates, unemployment, VA medical facilities, suicide rates, life expectancy, air quality and veteran homelessness to calculate its rankings.
Of course, no single ranking can capture every veteran’s needs or circumstances. Housing costs, family ties, climate and proximity to specialized care can all influence where someone chooses to live. Still, the findings offer a snapshot of the states that may provide a stronger combination of financial and community support for life after service.
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