Arizona vs Nevada Veterans Comparison: Complete Guide 2025
Compare Arizona and Nevada for military retirees. Analyze military retirement tax, cost of living, VA healthcare, and retirement benefits for veterans.
Arizona vs Nevada Veterans Comparison: Complete Guide 2025
Arizona and Nevada both offer excellent financial benefits for military retirees with different tax approaches, both warm climates, and growing veteran communities. These southwestern states are increasingly popular destinations for veterans seeking retirement. This guide provides comprehensive comparison for your relocation decision.
Military Retirement Tax Treatment
Arizona: Military Retirement Fully Exempt
Arizona provides complete military retirement tax exemption:
Arizona Military Retirement Benefits:
- Military pension: 100% exempt from state income tax
- VA disability compensation: 100% exempt
- State income tax rate: 2.55%-4.5% (progressive)
- Effective tax on military retirement: 0%
Tax Example - $45,000 military pension + $20,000 other income:
- Military retirement tax: $0
- Other income tax: $780 (at 3.9% effective rate)
- Total state tax: $780
Nevada: No State Income Tax at All
Nevada offers the ultimate tax benefit - NO state income tax on any income:
Nevada Tax Benefits:
- Military pension: 0% state tax (no state income tax)
- VA disability compensation: 0% tax
- All other income: 0% state tax
- Effective tax rate: 0% on all income
- Funded by: Gaming, sales tax, property tax
Tax Example - $45,000 military pension + $20,000 other income:
- Military retirement tax: $0
- Other income tax: $0
- Total state tax: $0
Tax Winner: Nevada (No state income tax vs Arizona's tax on other income) Annual savings choosing Nevada: $780+ on $65,000 income
Cost of Living Comparison
Housing Market Overview
Arizona Housing:
- Median home price: $380,000
- Property tax rate: 0.62%
- Phoenix: $420,000
- Scottsdale: $580,000
- Tucson: $320,000
- Mesa: $380,000
- Property tax on $300,000: $1,860/year
- Rent average: $1,100-$1,400/month
Nevada Housing:
- Median home price: $395,000
- Property tax rate: 0.60%
- Las Vegas: $380,000
- Henderson: $390,000
- Reno: $460,000
- Carson City: $340,000
- Property tax on $300,000: $1,800/year
- Rent average: $1,200-$1,500/month
Housing Winner: Arizona (Slightly lower median price, similar tax rates)
Complete Cost of Living Index
| Category | Arizona | Nevada |
|---|---|---|
| Groceries/month | $550 | $570 |
| Utilities/month | $160 | $170 |
| Transportation | 98 | 102 |
| Healthcare | 100 | 102 |
| Overall index | 101 | 104 |
Arizona is 2-3% cheaper overall than Nevada
Job Market Analysis
Arizona Employment Opportunities
Strongest Sectors:
- Healthcare: Mayo Clinic, growing medical sector
- Technology: Phoenix tech corridor expansion
- Aerospace: Honeywell, defense contractors
- Finance: Banking and financial services
- Real estate/development: Strong market
Salary Information:
- Average salary: $54,800
- Healthcare: $65,000-$85,000
- Tech sector: $80,000-$115,000
- Aerospace: $75,000-$105,000
- Unemployment rate: 3.5%
Veterans Employment Rate: 88%
Nevada Employment Opportunities
Strongest Sectors:
- Hospitality/Tourism: Largest employer (Las Vegas)
- Aerospace: Various contractors
- Technology: Growing Las Vegas tech scene
- Healthcare: Growing medical sector
- Mining/Energy: Natural resources
Salary Information:
- Average salary: $52,300
- Hospitality: $35,000-$55,000 (+ tips/benefits)
- Aerospace: $75,000-$100,000
- Tech: $80,000-$110,000
- Unemployment rate: 3.8%
Veterans Employment Rate: 86%
Job Market Winner: Arizona (Higher average salaries, more diverse opportunities)
VA Healthcare Access
Arizona VA Healthcare Network
Major Medical Centers:
- Phoenix VA Medical Center
- Southern Arizona VA Health Care System (Tucson)
- Northern Arizona VA Health Care System
Network Details:
- Primary care providers: 1,600+
- Mental health specialists: 400+
- Average wait time: 19 days
- Community clinics: 42+
- Patient satisfaction: 4.1/5 stars
- Coverage: Excellent statewide access
Nevada VA Healthcare Network
Major Medical Centers:
- VA Southern Nevada Healthcare System (Las Vegas)
- VA Northern Nevada Healthcare System (Reno)
Network Details:
- Primary care providers: 900+
- Mental health specialists: 250+
- Average wait time: 24 days
- Community clinics: 18+
- Patient satisfaction: 3.8/5 stars
- Coverage: Growing, but gaps in rural areas
Healthcare Winner: Arizona (More providers, shorter wait times, better coverage)
Climate Considerations
Arizona Climate
Weather Profile:
- Summer: 95-115°F (dry heat)
- Winter: 50-70°F (mild, minimal freezing)
- Rainfall: 7-14 inches annually
- Humidity: Low (Phoenix)
- Natural disasters: Rare (occasional dust storms)
Health Considerations:
- Excellent for arthritis, some respiratory issues
- Elevation: 1,000-7,000 feet (varies)
- Air quality: Generally good (Phoenix has occasional issues)
- Winter: No snow, minimal winter weather issues
Nevada Climate
Weather Profile:
- Summer: 95-105°F (dry heat)
- Winter: 40-55°F (cold, occasional freezing)
- Rainfall: 9-16 inches annually
- Humidity: Low
- Natural disasters: Rare (occasional wind)
Health Considerations:
- Similar dry heat benefits
- Elevation: 2,000-7,000 feet (varies)
- Air quality: Good overall
- Winter: More snow than Phoenix, especially north
Climate Winner: Tie (Both excellent; Arizona slightly warmer in winter)
Detailed Cost Analysis
10-Year Military Retiree Budget
Arizona (Phoenix area) - $45,000 military pension:
| Category | Annual |
|---|---|
| Housing | $18,000 |
| Property tax | $1,860 |
| Utilities/insurance | $2,040 |
| Groceries | $6,600 |
| Transportation | $4,700 |
| Healthcare | $2,400 |
| State tax | $780 |
| Federal tax | $2,700 |
| Total Annual | $39,680 |
| 10-Year Total | $396,800 |
Nevada (Las Vegas area) - $45,000 military pension:
| Category | Annual |
|---|---|
| Housing | $18,600 |
| Property tax | $1,800 |
| Utilities/insurance | $2,040 |
| Groceries | $6,840 |
| Transportation | $4,800 |
| Healthcare | $2,400 |
| State tax | $0 |
| Federal tax | $2,700 |
| Total Annual | $39,780 |
| 10-Year Total | $397,800 |
10-Year Difference: Arizona saves $1,000 (very close, depends on income level)
Disability Benefits and Support
Arizona Disabled Veteran Benefits
- Property tax exemptions: Up to $3,250 for 100% disabled
- Vehicle registration: Tax exemptions available
- Education benefits: Strong GI Bill coordination
- Healthcare: Excellent VA network access
- Support programs: Growing veteran-specific services
Nevada Disabled Veteran Benefits
- Property tax exemptions: Available (varies by county)
- Vehicle registration: Tax breaks available
- Education benefits: Good GI Bill coordination
- Healthcare: Growing VA services
- Support programs: Strong in major cities
Disabled Benefits Winner: Arizona (More generous property tax exemptions)
Top Veteran Cities Comparison
Arizona Top Cities
Phoenix
- Cost: Moderate ($420K median)
- Jobs: Good (healthcare, tech growing)
- VA access: Excellent
- Lifestyle: Urban + desert recreation
- Population: 1.7M metro area
- Best for: Career-focused professionals
Tucson
- Cost: Affordable ($320K)
- Jobs: Moderate (growing tech, healthcare)
- VA access: Excellent
- Lifestyle: College town, outdoor recreation
- Population: 545K metro area
- Best for: Budget-conscious, outdoor enthusiasts
Scottsdale
- Cost: High ($580K+)
- Jobs: Good (finance, real estate)
- VA access: Good
- Lifestyle: Upscale retirement community
- Population: 250K city
- Best for: Affluent retirees
Nevada Top Cities
Las Vegas
- Cost: Moderate ($380K)
- Jobs: Good (hospitality, tech, aerospace)
- VA access: Excellent
- Lifestyle: Entertainment, nightlife, sports
- Population: 650K metro area
- Best for: Entertainment-focused professionals
Henderson
- Cost: Moderate ($390K)
- Jobs: Growing (tech, healthcare)
- VA access: Good
- Lifestyle: Suburban, family-friendly
- Population: 320K city
- Best for: Families seeking suburban life
Reno
- Cost: Moderate-high ($460K)
- Jobs: Good (tech growing rapidly)
- VA access: Good
- Lifestyle: Mountain nearby, outdoor recreation
- Population: 250K metro area
- Best for: Outdoor enthusiasts, tech workers
Water and Drought Considerations
Arizona Water Situation
Colorado River Water Rights:
- Arizona has senior water rights
- Reliable supply through agreements
- Minimal drought risk to residents
- Cost: Included in utilities
Nevada Water Situation
Colorado River Allocation:
- Junior water rights holder
- Drought concerns in recent years
- Potential future restrictions
- Cost: Included in utilities
Water Advantage: Arizona (More secure long-term water supply)
Veteran Communities and Culture
Arizona Veteran Infrastructure
- Population: 530,000+ veterans
- Organizations: Strong American Legion, VFW presence
- Military culture: Established, patriotic
- Veteran events: Regular throughout state
- Communities: Retirement communities common
Nevada Veteran Infrastructure
- Population: 200,000+ veterans
- Organizations: Growing veteran organizations
- Military culture: Less concentrated than Arizona
- Veteran events: Growing in major cities
- Communities: Emerging veteran-friendly areas
Community Winner: Arizona (Larger veteran population, stronger infrastructure)
Summary Comparison Table
| Factor | Arizona | Nevada |
|---|---|---|
| Military retirement tax | 0% | 0% |
| Other income tax | 2.55-4.5% | 0% |
| Cost of living | Lower | Higher |
| Housing median | $380,000 | $395,000 |
| Job market | Better | Growing |
| Average salary | $54,800 | $52,300 |
| VA healthcare | Excellent | Good |
| Climate | Hot/dry | Hot/dry |
| Water security | Excellent | Good |
| Veteran population | 530,000+ | 200,000+ |
Final Verdict
Choose Arizona if:
- You want lowest cost of living (2-3% cheaper)
- You prefer larger veteran community
- You value better VA healthcare access
- You want more diverse job market
- You prefer higher average salaries
- You want secure water supply long-term
Choose Nevada if:
- You want NO state income tax (even on other income)
- You enjoy entertainment/Las Vegas lifestyle
- You prefer smaller veteran population
- You value gaming/entertainment options
- You want slightly more upscale lifestyle options
The Numbers: Arizona offers better overall value for most veterans due to:
- Lower cost of living (2-3%)
- Better job market and salaries
- Superior VA healthcare access
- Larger, more established veteran communities
- Better water security
The tax advantage of Nevada (no tax on other income) amounts to $780-$930 annually for a retiree with modest additional income. However, Arizona's cost of living advantage (2-3%) typically offsets this benefit for the average veteran.
For most military retirees, Arizona is the superior choice due to comprehensive advantages in VA healthcare, cost of living, job market, and community infrastructure. Nevada appeals primarily to high-earning retirees seeking maximum tax efficiency and entertainment-focused lifestyles.