Best Southeast States for Military Retirees 2025

The Southeast represents America's premier region for military retirement due to exceptional tax treatment, extremely affordable living costs, warm weather, and strong veteran communities. This comprehensive guide identifies and ranks the best Southeast states for retiring service members.

Top 5 Southeast States for Military Retirees

1. FLORIDA - BEST OVERALL FOR MILITARY RETIREES

Why Florida Leads:

• Military retirement: 100% exempt from state income tax
• VA disability: 100% exempt
• Property tax: 0.85% (lowest in Southeast)
• Homestead exemption: 50,000-75,000 for disabled
• No state income tax: Covers all income
• Healthcare: Extensive VA network + world-class private medicine

Key Financial Benefits:

• $0 state income tax on $45K military pension
• Low property tax rate: ~$2,130/year on $300K home
• Homestead exemptions reduce tax further
• Sales tax: 6-7.5% (varies by county)
• No income tax on military or any income

Best Cities for Military Retirees:

• Tampa Bay: Growing economy, VA access, affordable ($330K)
• Jacksonville: Very affordable ($280K), naval base presence, large veteran population
• Southwest Florida: Retirement communities, beaches, affordable ($240-300K)
• Orlando: Central location, growing job market, affordable ($310K)

Financial Profile (Military Retiree):

• State income tax: $0
• Property tax: ~$2,130/year (vs $5,400 in Texas)
• Cost of living: Very low
• VA healthcare: Excellent statewide
• 10-year savings vs similar Texas location: $20,000-$30,000

Recommendation: Florida optimal for military retirees prioritizing tax savings and affordability.

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2. TENNESSEE - NO STATE INCOME TAX PLUS AFFORDABILITY

Why Tennessee Excels:

• Military retirement: Exempt (effective 0% due to no state income tax)
• No state income tax: On any income source
• Property tax: 0.71% (lowest in Southeast)
• Military culture: Strong throughout state
• Healthcare: Growing VA network
• Cost of living: Very low

Key Financial Benefits:

• No state income tax whatsoever
• Lowest property tax in Southeast: ~$2,130/year on $300K home
• Very affordable housing (median $310K)
• Growing job market (especially Nashville tech)
• Military installation connection (Nashville, Memphis)

Best Cities for Military Retirees:

• Nashville: Growing tech sector, excellent VA, vibrant culture ($380K)
• Knoxville: Mountain recreation, affordable ($300K), good VA access
• Memphis: Very affordable ($220K), strong VA presence, music culture
• Chattanooga: Outdoor recreation, growing economy, affordable ($280K)

Financial Profile:

• State income tax: $0
• Property tax: ~$2,130/year
• Cost of living: 3% lower than Florida
• 15-year savings vs comparable state with income tax: $40,000-$50,000

Recommendation: Tennessee best for retirees on strict budgets or seeking no-income-tax advantage.

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3. SOUTH CAROLINA - MILITARY RETENTION + AFFORDABILITY

Why South Carolina Attracts Retirees:

• Military retirement: 100% exempt
• Property tax: 0.57% (lowest rate Southeast)
• VA disability: Full exemption
• Coastal living: 400+ miles of beaches
• Healthcare: Growing VA network
• Cost of living: Low (2% cheaper than NC)

Key Financial Benefits:

• Military retirement completely exempt
• Lowest property tax rate: ~$1,710/year on $300K
• Significant military presence (Fort Jackson, etc.)
• Beach recreation included
• Retiree-focused communities abundant

Best Cities:

• Charleston: Historic charm, coastal, moderate cost ($420K)
• Columbia: Very affordable ($280K), capital city amenities, strong VA
• Greenville: Affordable ($310K), vibrant downtown, outdoor recreation
• Myrtle Beach: Beach living, affordable ($320K), retirement-focused

Recommendation: SC ideal for those seeking military culture + beach lifestyle + low cost.

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4. GEORGIA - MILITARY RETIREMENT EXEMPT + GROWTH

Why Georgia Appeals:

• Military retirement: Fully exempt (unlimited amount)
• Growing economy: Tech, finance, logistics
• Healthcare: Excellent VA network (2,100+ providers)
• Cost of living: Low-moderate
• Job opportunities: Atlanta tech scene
• Military culture: Established

Key Financial Benefits:

• Military retirement 100% exempt
• Property tax: 0.92%
• Growing job market for working retirees
• Atlanta tech opportunities (if still working)
• Strong veteran communities

Best Cities:

• Atlanta: Major economy, tech opportunities ($390K)
• Savannah: Coastal, historic, retirement-friendly ($340K)
• Athens: College town, affordable ($310K)

Recommendation: GA best for retirees wanting career options or growth markets.

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5. NORTH CAROLINA - BALANCED OPTION

Why NC Deserves Consideration:

• Military retirement: Fully exempt
• Property tax: 0.84% (reasonable)
• Research Triangle: Job opportunities for working retirees
• Healthcare: Excellent VA network
• Cost of living: Low-moderate
• Four seasons + outdoor recreation

Best Cities:

• Raleigh: Tech hub, excellent VA, moderate cost ($380K)
• Greensboro: Affordable ($280K), growing economy
• Asheville: Mountain recreation, moderate cost ($420K)

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Financial Comparison: $45,000 Military Pension + $10,000 Other Income

Florida (Tampa area):

• State income tax: $0
• Property tax: $2,130 (on $300K home)
• Housing: $330,000
• Annual total: ~$35,000

Tennessee (Nashville):

• State income tax: $0
• Property tax: $2,130
• Housing: $380,000
• Annual total: ~$35,500

South Carolina (Columbia):

• State income tax: $675
• Property tax: $1,710
• Housing: $280,000
• Annual total: ~$35,200

Georgia (Savannah):

• State income tax: $1,150
• Property tax: $2,050
• Housing: $340,000
• Annual total: ~$36,500

North Carolina (Greensboro):

• State income tax: $980
• Property tax: $2,520
• Housing: $280,000
• Annual total: ~$35,700

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10-Year Cost Comparison

State	Annual Cost	10-Year Total	Rank
Florida	$35,000	$350,000	#1
Tennessee	$35,500	$355,000	#2
South Carolina	$35,200	$352,000	#2
Georgia	$36,500	$365,000	#4
North Carolina	$35,700	$357,000	#5

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VA Healthcare Comparison

Best VA Networks:

1. Georgia: 4 major medical centers, 50+ clinics, 2,100+ providers, 18-day wait
2. Florida: 5 major medical centers, 40+ clinics, 19-day wait
3. North Carolina: 4 major medical centers, 25+ clinics, 18-day wait
4. Tennessee: 4 major medical centers, 40+ clinics, 19-day wait
5. South Carolina: 3 major medical centers, 22+ clinics, 20-day wait

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Quality of Life Factors

Climate

• Best Year-Round: Florida, South Carolina, Georgia (warmest)
• Most Balanced: North Carolina (seasons + warm)
• Best for Recreation: Tennessee (mountains), Florida (beaches)

Veteran Communities

• Largest: Florida (730,000+ veterans)
• Most Concentrated: South Carolina (military bases)
• Most Active: Georgia (Atlanta metro)

Cultural Attractions

• Nashville: Music, food scene
• Charleston: History, restaurants
• Savannah: Historic charm, riverfront
• Atlanta: Urban culture, sports
• Asheville: Arts, mountain culture

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Recommendations by Military Retiree Profile

Scenario 1: Budget-Focused Retiree ($45K Military Pension Only)

Best: Florida or Tennessee

• $0 state income tax
• Lowest property taxes
• Most affordable living
• Recommendation: Florida (Tampa, Jacksonville) or Tennessee (Memphis, Knoxville)

Scenario 2: Active Retiree with Other Income

Best: Tennessee or South Carolina

• Tennessee: No income tax on other income
• South Carolina: Lowest property taxes
• Growing job markets
• Recommendation: Nashville, Columbia, or Greenville

Scenario 3: Adventure/Recreation-Focused

Best: Tennessee or North Carolina

• Tennessee: Mountain access, water recreation
• North Carolina: Mountains, Research Triangle culture
• Recommendation: Asheville, Knoxville, Mountain communities

Scenario 4: Beach/Coastal Lifestyle

Best: Florida or South Carolina

• Florida: Best beaches, warmest, retiree infrastructure
• South Carolina: More affordable, historic charm
• Recommendation: Tampa Bay, Jacksonville, Charleston, Myrtle Beach

Scenario 5: Seeking Career Opportunities

Best: Georgia or North Carolina

• Georgia: Atlanta tech boom
• North Carolina: Research Triangle
• Recommendation: Atlanta, Raleigh

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Overall Ranking: Best Southeast States for Military Retirees

Rank	State	Score	Primary Advantage
1	Florida	9.4/10	Perfect tax + affordability + lifestyle
2	Tennessee	9.2/10	No income tax + low property tax
3	South Carolina	9.0/10	Lowest property tax + beaches + military culture
4	Georgia	8.7/10	Growth + job opportunities + VA healthcare
5	North Carolina	8.5/10	Balance of affordability + opportunities

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Critical Advantages of Southeast for Military Retirees

1. Unbeatable Tax Benefits: Most states exempt military retirement completely
2. Lowest Costs: Cost of living 30-50% lower than national average
3. Established Veteran Communities: Decades of military presence
4. Warm Weather: No winter heating costs, year-round recreation
5. VA Healthcare: Expanding networks across region
6. Affordability: Housing median $240-380K vs $450K+ elsewhere
7. No Income Tax: Most states (TN, SC partially)
8. Property Tax: Among lowest in nation (0.57%-0.92%)

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Conclusion

The Southeast is unquestionably America's best region for military retirees due to:

• Complete military retirement tax exemptions
• No or minimal state income taxes
• Lowest property tax rates nationally
• Most affordable housing relative to income
• Warmest year-round climate
• Strong established veteran networks
• Excellent and expanding VA healthcare

Florida and Tennessee emerge as top choices, offering perfect combinations of tax benefits, affordability, and lifestyle. A military retiree with $45,000 annual pension can live comfortably for $35,000-$36,000 annually in these states, enabling travel, healthcare upgrades, and leisure activities.

For maximum financial advantage: Choose Tennessee or Florida. For best overall lifestyle: Choose Florida. For active, adventure-focused retirees: Choose Tennessee or North Carolina. For those still working: Choose Georgia or North Carolina.