Best Pacific Northwest States for Veterans 2025
Guide to best Pacific Northwest states for military retirees. Compare Washington and Oregon for veteran benefits, tax treatment, and outdoor recreation.
Best Pacific Northwest States for Veterans 2025
The Pacific Northwest offers progressive communities, exceptional outdoor recreation, growing economies, and increasingly veteran-friendly policies. Washington and Oregon dominate the region as top veteran destinations, each with distinct tax structures and lifestyle appeal. This guide compares these Pacific Northwest states for military retirees.
Top 2 Pacific Northwest States for Veterans
1. WASHINGTON - BEST FOR TAX-FREE INCOME
Why Washington Leads:
- No state income tax: Any source (ultimate advantage)
- Military retirement: 100% tax-free
- All other income: Tax-free
- Property tax: 0.90% (very low)
- Cost of living: Moderate-high (mainly Seattle effect)
- Job market: Excellent (tech, aerospace, healthcare)
- VA healthcare: Excellent statewide
- Outdoor recreation: Mountains, water, hiking
Financial Advantages:
- Zero state income tax on all sources—unique advantage
- Military retirement completely tax-free
- Other income completely tax-free (critical advantage at higher incomes)
- Low property taxes
- Sales tax: 10.25% average (funding alternative to income tax)
Tax Comparison - Military Retiree with $50K Income + $10K Other Income:
Washington:
- State income tax: $0
- Sales tax impact: ~$800/year
- Total state tax: ~$800
Oregon:
- State income tax: ~$3,368
- Sales tax: $0
- Total state tax: ~$3,368
Annual Advantage: Washington saves $2,568+
Best Cities:
- Seattle: Tech hub (Amazon, Microsoft), excellent but expensive ($725K)
- Tacoma: Military base presence, more affordable ($420K), excellent VA
- Spokane: Eastern Washington, affordable, less rainy ($380K)
Outdoor Recreation:
- Cascades Mountains: Hiking, skiing
- Puget Sound: Water recreation, boating
- Rainier National Park access
- 7 National Forests
- Rain forest access (Olympic Mountains)
Recommendation: Washington optimal for high-earning professionals, especially those in tech/aerospace sectors where no state income tax provides substantial advantage.
2. OREGON - BEST FOR OVERALL LIFESTYLE + AFFORDABILITY
Why Oregon Appeals:
- Military retirement: Taxed (but lower rate structure)
- Cost of living: 3-4% lower than Washington
- Housing: Median $425K (more affordable than Washington)
- No sales tax: Unlike Washington's 10.25%
- Job market: Growing (especially Portland tech)
- Outdoor recreation: Beaches, mountains, national parks
- VA healthcare: Good statewide
- Progressive communities: Strong veteran support
Financial Considerations:
- Military retirement taxed at effective 3.75% rate
- Other income taxed at progressive rates (4.75%-9.9%)
- No sales tax (saves ~$1,000/year vs Washington)
- Housing more affordable
- Overall cost of living 3-4% lower
Best Cities:
- Portland: Tech growth, urban culture, progressive, affordable ($500K)
- Eugene: College town, outdoor recreation, affordable ($380K)
- Bend: Outdoor recreation hub, moderate cost ($480K)
Outdoor Recreation:
- Cascade Mountains: Skiing, hiking
- 360+ miles of Pacific beaches
- Oregon Coast beauty
- Crater Lake
- Willamette Valley wine country
- Desert hiking/recreation
Unique Feature: Coast recreation—unmatched in Washington.
Recommendation: Oregon optimal for outdoor enthusiasts and those prioritizing lifestyle + affordability balance over maximum tax savings.
Financial Comparison: $50K Military Pension + $10K Other Income
Annual Costs (Seattle/Portland Areas):
| Item | Washington | Oregon |
|---|---|---|
| Housing (mortgage) | $2,100 | $1,800 |
| Property tax | $900 | $980 |
| Utilities/insurance | $300 | $280 |
| Groceries | $1,240 | $1,220 |
| Transportation | $1,000 | $960 |
| Healthcare | $600 | $600 |
| State income tax | $0 | $3,368 |
| Sales tax (WA) / No tax (OR) | $850 | $0 |
| Federal tax | $2,400 | $2,400 |
| Total Annual | $9,390 | $11,608 |
10-Year Comparison:
- Washington: ~$93,900 state/local taxes
- Oregon: ~$116,080 state/local taxes
- Advantage: Washington by ~$22,180 over 10 years
However: Lifestyle preferences and costs vary; difference narrows for lower-income retirees.
VA Healthcare Comparison
Washington VA Healthcare:
- 4 major medical centers
- 2,200+ providers
- 21-day average wait
- 55+ community clinics
- 4.0/5 patient satisfaction
- Coverage: Good to excellent
Oregon VA Healthcare:
- 3 major medical centers
- 1,400+ providers
- 22-day average wait
- 35+ community clinics
- 3.9/5 patient satisfaction
- Coverage: Good statewide
Winner: Washington (More providers, slightly shorter wait times)
Outdoor Recreation Comparison
Washington:
- Skiing: Snoqualmie, Alpental (moderate resorts)
- Hiking: Cascades, excellent trail systems
- Water: Puget Sound, lakes, rivers
- National Parks: Mount Rainier, Olympic Peninsula
- Climate: Mild but very rainy
- Best For: Mountain/water recreation enthusiasts
Oregon:
- Skiing: Timberline (high-elevation access)
- Hiking: Cascades, exceptional trails
- Water: Pacific beaches (360+ miles)
- Coast: Unique recreation option unavailable WA
- Wine Country: Willamette Valley recreation
- Climate: Similar to WA but slightly different
- Best For: Diverse recreation (mountains + coast + wine)
Recreation Winner: Oregon (More diverse due to coast + wine country)
Climate Comparison
| Factor | Washington | Oregon |
|---|---|---|
| Summer temp | 75-85°F | 75-85°F |
| Winter temp | 35-45°F | 35-45°F |
| Rainfall | 35-65" | 40-70" |
| Sunshine | Lower | Slightly higher |
| Humidity | High | High |
| Winter storms | Occasional snow | Occasional ice/snow |
Climate Tie: Both very similar; Willamette Valley (Oregon) slightly drier
Overall Cost of Living Index
| Category | Washington | Oregon |
|---|---|---|
| Groceries | 620 | 610 |
| Utilities | 180 | 175 |
| Transportation | 105 | 102 |
| Healthcare | 108 | 105 |
| Overall | 112 | 108 |
Oregon 3-4% cheaper overall despite Washington's tax advantage.
30-Year Property Tax Impact ($300K Home)
Washington:
- Year 1: $2,700
- Year 30: $3,460
- 30-year total: $94,200
Oregon:
- Year 1: $2,910
- Year 30: $3,730
- 30-year total: $101,850
30-Year Advantage: Washington saves $7,650
Best Choice by Veterans Profile
High-Earning Tech Professional ($80K+ Income)
Best: Washington
- No state income tax on high income
- Tech opportunities (Seattle, Bellevue)
- Aerospace presence
- Urban amenities
- 10-year tax savings: $40,000+
- Recommendation: Seattle metro area
Military Retiree, Fixed Income Only ($45K Pension)
Essentially Tied:
- Washington: $0 tax, but higher living costs
- Oregon: ~$1,688 tax (at lower effective rate), 3% lower costs
- Overall annual difference: ~$800
- Choose based on lifestyle: WA for tech culture, OR for coast/wine
- Recommendation: Tacoma (WA) or Eugene (OR)
Outdoor Recreation Focus
Best: Oregon
- Pacific beaches (unmatched advantage)
- Wine country recreation
- Slightly lower cost
- Diverse recreation options
- Recommendation: Bend, Eugene, or Portland
Working Veteran in Tech/Aerospace
Best: Washington
- Higher salaries (especially tech)
- No income tax on high earnings
- Tech ecosystem (Seattle, Bellevue, Puget Sound)
- Aerospace (Boeing headquarters)
- Recommendation: Seattle metro, Tacoma (Boeing)
Retired from Tech, Seeking Lifestyle
Best: Oregon
- Lower cost than Washington
- Excellent lifestyle amenities
- Beach access + wine country
- Less urban/tech-focused culture
- Recommendation: Portland, Eugene, Bend
Disability Benefits Comparison
Washington Disabled Veteran Benefits:
- Property tax exemptions: Partial
- Vehicle registration: Exemptions
- Education: Good state benefits
- Healthcare: Excellent VA access
Oregon Disabled Veteran Benefits:
- Property tax exemptions: Partial
- Vehicle registration: Exemptions
- Education: Good state benefits
- Healthcare: Good VA access
Disabled Benefits: Slightly better in Washington due to superior VA healthcare access
Overall Pacific Northwest Ranking
| Factor | Washington | Oregon |
|---|---|---|
| Tax efficiency (high income) | Winner | Limited |
| Affordability (low income) | Higher | Winner |
| VA healthcare | Excellent | Good |
| Outdoor recreation | Excellent | Exceptional |
| Job market | Excellent | Good |
| Cost of living | Moderate-High | Low-Moderate |
| Beach access | Limited | Excellent |
Final Recommendations
Choose Washington if:
- You earn $70K+ annually (tax savings substantial)
- You work in tech or aerospace
- You want maximum income tax savings
- You prefer mountain recreation over beaches
- You value excellent VA healthcare
Choose Oregon if:
- You're on fixed military retirement income
- You want beach recreation access
- You prefer wine country lifestyle
- You want slightly lower overall costs
- You value outdoor diversity (mountains + coast)
Conclusion
Washington and Oregon represent the Pacific Northwest's best options for veterans, each with distinct advantages:
Washington excels for high-income professionals where no state income tax creates substantial savings. Tech professionals, aerospace workers, and those earning $80K+ benefit most from Washington's unique tax structure.
Oregon excels for lifestyle-focused retirees seeking balance of affordability, outdoor recreation (especially beaches), and progressive communities. Fixed-income military retirees save money and enjoy more diverse recreation.
For most military retirees: Oregon likely provides better overall value (3% lower costs, beach access, wine country).
For high-earning tech/aerospace veterans: Washington's no state income tax provides $30,000-$50,000+ over 10 years, justifying higher living costs.
Both states offer excellent VA healthcare, outdoor recreation, progressive veteran-friendly communities, and quality of life unmatched in other regions. The choice depends primarily on income level and lifestyle priorities.