South Carolina has been ranked the best state in the nation for military retirees for the third consecutive year, according to a new study released by the personal finance company WalletHub in May 2026. The ranking reflects the Palmetto State’s strong combination of tax policy, veteran services, and quality of life for those who have served in the armed forces, a consideration of particular relevance to the veteran community across York and Lancaster Counties.
How the Rankings Were Determined
WalletHub evaluated all 50 states and the District of Columbia across 28 key indicators of veteran retirement-friendliness. The analysis was organized across three broad categories: economic environment, quality of life, and health care. The data set ranges from job opportunities for veterans to housing affordability to the quality of VA hospitals. South Carolina ranked first, followed by North Dakota at second and Wyoming at third. Oregon ranked last among all 51 jurisdictions evaluated.
What Put South Carolina at the Top
South Carolina is the best state for military retirees in part because it has many policies in place to help veterans. The state allows businesses to give preferential hiring to veterans, offers academic credit for military service, and has veteran treatment courts, which provide treatment and mentoring services to veterans with mental health and substance abuse challenges.
South Carolina does not tax military pensions. The Palmetto State has the third-best VA hospitals in the country and the third-most hospitals per capita, which can help ensure that military retirees stay healthy. South Carolina also has the seventh-most veterans per capita and the most veteran-owned businesses per capita, indicating that military retirees have strong social and business opportunities.
Key Subcategory Rankings
Among individual metrics in the WalletHub study, South Carolina earned particularly strong marks across several areas. The state ranked first in the share of veteran-owned businesses per capita, fourth in quality of VA hospitals, seventh in veterans per capita, and seventh in job opportunities for veterans. South Carolina placed 10th for VA benefits administration facilities per number of veterans and ranked 25th, at the national average, for housing affordability.
A Three-Year Streak
The 2026 designation marks the third straight year South Carolina has topped the WalletHub ranking. WalletHub analyst Chip Lupo noted that transitioning from military to civilian life is not easy but that the best states for military retirees make that adjustment as smooth as possible.
York and Lancaster Counties are home to significant veteran populations, and the state’s perennial placement at the top of this ranking underscores the advantages available to service members considering the Palmetto State for retirement. The full WalletHub report is available at wallethub.com.
Source: WalletHub, “Best and Worst States for Military Retirees 2026,” published May 2026
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