Midwest Veteran Benefits: 12 States Compared

The Midwest doesn't usually dominate headlines when people talk about veteran benefits. It's not Florida with zero income tax and beach weather. It's not Virginia with Pentagon proximity and defense contractor gold mines. It's not Texas with massive property exemptions and swagger.

But here's what the Midwest does offer: affordable living. We're talking actual houses for under $200K. Property taxes that don't require a second mortgage. Cost of living that lets your military retirement stretch further than it would in most coastal states.

The veteran benefits are hit or miss—some states try hard, others phone it in. But when you factor in affordability, several Midwest states become genuinely attractive options.

We're covering 12 states: Ohio, Indiana, Illinois, Michigan, Wisconsin, Minnesota, Iowa, Missouri, Kansas, Nebraska, North Dakota, and South Dakota (though South Dakota made our Top 10 list—we'll touch on it here for regional context).

Quick Rankings: Midwest States Comparison

Rank	State	Income Tax on Military Retirement	Property Tax Situation	VA Healthcare	Cost of Living	Overall Grade
1	South Dakota	None (no income tax)	100% disabled only	Limited	Very low	A-
2	Indiana	Fully exempt	Deduction for disabled vets	Good	Very low	B+
3	Wisconsin	Partially exempt (strong)	Good exemptions	Good	Moderate	B+
4	Iowa	Fully exempt	Varies by county	Good	Low	B
5	Michigan	Up to $59,960 exempt	Partial exemptions	Very good	Moderate	B
6	Illinois	Fully exempt	Varies widely	Excellent (Chicago area)	Moderate	B-
7	Ohio	Partially exempt	Limited	Very good	Low	B-
8	North Dakota	Partially exempt	Limited	Very limited	Low	C+
9	Minnesota	Partially exempt	Limited	Good	Moderate	C+
10	Missouri	Up to $37,720 exempt	Varies	Good	Low	C+
11	Kansas	Up to $25,000 exempt	Modest exemptions	Limited	Low	C
12	Nebraska	Partially exempt (weak)	Limited	Limited	Low	C

Compare all 50 states in detail: militarytransitiontoolkit.com/state-benefits

#1: South Dakota - The Midwest's No-Tax Champion

Winner: Zero income tax, ultra-low cost of living, personal freedom.

Loser: Limited VA care, harsh winters, property tax breaks only for 100% disabled vets.

South Dakota made our Top 10 national list, and it's the clear winner in the Midwest. (Full breakdown in that post, but here's the regional context.)

Why It Leads the Region

No state income tax (never has been, never will be).
Rock-bottom cost of living—you can buy land and a house for shockingly little.
100% disabled veterans get property tax exemptions; others don't.
Personal freedom—minimal regulations, strong 2A culture.

The Healthcare Trade-Off

VA care is limited—Fort Meade VA (near Sturgis) is the only full hospital. If you need frequent care, this is a problem.

Who Should Choose South Dakota

Veterans who want zero income tax and don't need much VA care
Folks seeking independence and wide-open spaces
Anyone who loves the outdoors (hunting, fishing, motorcycles)

Bottom Line: South Dakota is the Midwest's tax haven—great if you're healthy and independent.

#2: Indiana - The Quiet Overachiever

Winner: Military retirement fully exempt from state income tax, very low cost of living, decent VA access.

Loser: Property tax exemptions are modest, limited job market outside Indy.

Indiana flies under the radar, but it's arguably the best all-around Midwest option for veterans.

Tax Treatment

Military retirement income: 100% exempt from state income tax.
Disability pay: Also fully exempt.
Property taxes: Disabled veterans (at least 10% rating) can get a $24,960 deduction from assessed value. It's not huge, but it helps.

Cost of Living

Indiana is cheap. You can buy a solid house in most of the state for well under $200K. Property taxes are reasonable. Utilities are low. Your military retirement will stretch far here.

Even Indianapolis (the largest city) is affordable compared to most metro areas.

VA Healthcare

Richard L. Roudebush VA Medical Center (Indianapolis) is excellent—one of the better VA hospitals in the Midwest.
VA Northern Indiana Health Care System (Fort Wayne, Marion) serves the northern part of the state.
Several outpatient clinics statewide.

Coverage is solid, especially if you're near Indy or Fort Wayne.

Job Market

Indianapolis has a decent job market—healthcare, logistics, manufacturing, and some tech. Outside Indy, opportunities are more limited but cost of living is even lower.

Who Should Move Here

Veterans who want full military retirement tax exemption without leaving the Midwest
Anyone seeking ultra-low cost of living
Folks who want decent VA access and don't need to be in a major city
Veterans who value practicality over flash

Who Should Avoid It

Anyone who needs urban excitement (Indy is nice, but it's not Chicago)
Veterans who hate cold winters
Job seekers in niche fields (opportunities are limited outside healthcare/logistics)

Bottom Line: Indiana is a sleeper hit—full tax exemption, low costs, good VA care. It's practical, affordable, and quietly veteran-friendly.

#3: Wisconsin - Cheese, Beer, and Solid Benefits

Winner: Strong partial exemption, good property tax relief, decent VA care, affordable living.

Loser: High property taxes (offset by exemptions), cold winters, limited job market outside Milwaukee/Madison.

Wisconsin doesn't scream "veteran paradise," but it offers a surprisingly strong benefits package combined with Midwest affordability.

Tax Treatment

Military retirement: Income-based partial exemption. If you're 65+ and your income is under certain thresholds, you can exclude substantial amounts (often most or all of your military retirement).
Property taxes: Disabled veterans can get significant property tax credits—up to $1,500+ annually depending on disability rating and property value.

VA Healthcare

Clement J. Zablocki VA Medical Center (Milwaukee) is solid—large, well-equipped, decent reputation.
William S. Middleton Memorial Veterans Hospital (Madison) is also strong.
Outpatient clinics in Green Bay, Appleton, Chippewa Falls, and elsewhere.

Coverage is good across most of the state.

Cost of Living

Wisconsin is affordable—especially outside Milwaukee and Madison. You can find decent housing in smaller cities and rural areas for well under $200K. Property taxes are higher than some Midwest states, but exemptions help.

Lifestyle Considerations

If you like outdoor activities—hunting, fishing, boating, camping—Wisconsin delivers. Winters are brutal (think below zero for weeks), but summers are gorgeous.

Who Should Move Here

Veterans who want decent benefits and affordability
Anyone who loves the outdoors and doesn't mind cold
Folks who want access to decent VA care without big-city chaos
Packers fans (it's basically a religion here)

Who Should Avoid It

Anyone who hates cold, snowy winters
Veterans seeking maximum tax savings (it's good, not great)
Job seekers outside healthcare/manufacturing (opportunities are limited)

Bottom Line: Wisconsin is a solid, affordable option with better benefits than most of the Midwest. It punches above its weight.

#4: Iowa - Affordable and Veteran-Friendly

Winner: Military retirement fully exempt, low cost of living, decent VA access.

Loser: Limited job market, rural isolation, not much to do.

Iowa is quiet, affordable, and treats military retirement income well.

Tax Treatment

Military retirement: 100% exempt from state income tax.
Property taxes: Vary widely by county; some offer veteran exemptions, others don't.

VA Healthcare

VA Central Iowa Health Care System (Des Moines) is solid.
Iowa City VA serves eastern Iowa and has ties to the University of Iowa Hospitals (excellent care).
Outpatient clinics scattered around the state.

Cost of Living

Iowa is cheap. Housing is affordable, property taxes are reasonable (for the Midwest), and general living costs are low. Your retirement dollars go far here.

Lifestyle Reality

Iowa is rural. Des Moines and Iowa City offer some urban amenities, but it's mostly small towns and farmland. If you like peace, quiet, and space, great. If you need cultural variety and nightlife, you'll be bored.

Who Should Move Here

Veterans who want full tax exemption and ultra-low costs
Anyone seeking a quiet, rural lifestyle
Folks who grew up in the Midwest and want to stay
Veterans who don't need frequent VA care beyond routine

Who Should Avoid It

Anyone who needs urban amenities or job opportunities
Veterans who want variety and excitement
People who require frequent specialty VA care (you'll be driving)

Bottom Line: Iowa is a no-frills, affordable choice with full military retirement tax exemption. It's practical if you like rural living.

#5: Michigan - Great Lakes, Mixed Benefits

Winner: Strong partial exemption (up to $59,960), excellent VA care in Detroit/Ann Arbor, Great Lakes lifestyle.

Loser: High property taxes, rough economy outside certain areas, brutal winters.

Michigan offers strong tax treatment for military retirees and access to top-tier VA care—but the state's economy is uneven.

Tax Treatment

Military retirement: Exempt up to $59,960 (for those born after 1952). That's one of the highest caps in the nation.
Property taxes: High rates, but disabled veterans can get exemptions (varies by locality).

VA Healthcare

John D. Dingell VA Medical Center (Detroit) is excellent and has ties to Wayne State University medical programs.
VA Ann Arbor Healthcare System is outstanding—one of the best in the Midwest.
Several outpatient clinics statewide.

If you need complex or specialized VA care, Michigan delivers.

Cost of Living

Michigan is affordable in most areas—Detroit suburbs, Grand Rapids, Lansing, and rural areas offer reasonable housing costs. Property taxes are on the higher side for the Midwest, though.

Job Market

Detroit metro is rebounding (automotive, tech startups), Grand Rapids is strong (manufacturing, healthcare), but rust belt areas like Flint and Saginaw are still struggling.

Who Should Move Here

Veterans who want a strong tax exemption and excellent VA care
Anyone who loves the Great Lakes lifestyle (boating, fishing, beaches)
Folks who want four seasons and don't mind cold winters
Veterans transitioning into automotive or manufacturing careers

Who Should Avoid It

Anyone seeking a booming economy statewide (it's patchy)
Veterans who hate cold, snowy winters
People who want low property taxes

Bottom Line: Michigan is a solid choice if you're near Detroit or Ann Arbor and prioritize VA healthcare quality and reasonable tax exemptions.

#6: Illinois - Great VA Care, Brutal Taxes

Winner: Military retirement fully exempt, Chicago VA system is excellent, strong economy (Chicago).

Loser: High property taxes (worst in some areas), financial instability, outmigration.

Illinois is a paradox—it fully exempts military retirement but also has crushing property taxes and a reputation for fiscal mismanagement.

Tax Treatment

Military retirement: 100% exempt from state income tax.
Property taxes: Among the highest in the nation (especially Chicago suburbs). Veteran exemptions vary by county and are often modest.

VA Healthcare

Jesse Brown VA Medical Center (Chicago) is excellent.
Edward Hines Jr. VA Hospital (suburban Chicago) is one of the largest and best in the Midwest.
Captain James A. Lovell Federal Health Care Center (North Chicago) is a combined VA/Navy facility—unique and well-regarded.
Outpatient clinics downstate (Peoria, Springfield, Marion).

If you're in the Chicago area, you have access to world-class VA care.

Cost of Living

Chicago and suburbs are expensive—especially property taxes (routinely $8K-$12K annually even on modest homes). Downstate Illinois is much cheaper.

The Exodus Problem

Illinois has had net outmigration for years—people are leaving due to taxes and political dysfunction. That's a red flag.

Who Should Move Here

Veterans who need excellent VA care and live in/near Chicago
Anyone transitioning into finance, tech, or healthcare (Chicago has jobs)
Folks who grew up here and want to stay near family

Who Should Avoid It

Retirees on fixed incomes (property taxes will crush you)
Anyone seeking financial stability and good governance
Veterans who don't need the Chicago job market or VA system

Bottom Line: Illinois offers full military retirement tax exemption and great VA care, but property taxes and state finances make it hard to recommend.

#7: Ohio - Decent Access, Mixed Benefits

Winner: Low cost of living, decent VA access (Cleveland, Cincinnati, Dayton), central location.

Loser: Partial tax exemption isn't great, limited property tax relief, inconsistent economy.

Ohio is smack in the middle—geographically and in terms of veteran benefits.

Tax Treatment

Military retirement: Partially exempt—varies by age and income. Generally, you'll pay some state income tax.
Property taxes: Moderate rates, limited veteran-specific exemptions.

VA Healthcare

Louis Stokes Cleveland VA Medical Center is excellent and affiliated with Case Western Reserve.
Cincinnati VA Medical Center is solid.
Dayton VA Medical Center serves southwest Ohio.
Outpatient clinics scattered across the state.

Coverage is good, especially in urban areas.

Cost of Living

Ohio is affordable—especially outside Columbus, Cleveland, and Cincinnati. You can buy a house for under $150K in many areas.

Job Market

Columbus is growing (tech, healthcare, logistics). Cleveland and Cincinnati are stable but not booming. Rust belt areas are struggling.

Who Should Move Here

Veterans who want low cost of living with decent VA access
Anyone who wants to be centrally located (within a day's drive of half the U.S. population)
Folks who grew up in the Midwest and want to stay

Who Should Avoid It

Veterans seeking strong tax exemptions (Ohio's is weak)
Anyone who wants a booming economy
People who hate gray, dreary winters

Bottom Line: Ohio is fine—affordable, decent VA access, but the benefits package isn't impressive.

#8: North Dakota - Oil Boom, Limited Benefits

Winner: Low cost of living, strong economy (oil industry), safe communities.

Loser: Very limited VA care, brutal winters, partial tax exemption.

North Dakota boomed with the oil industry and remains economically strong—but it's isolated and offers limited veteran benefits.

Tax Treatment

Military retirement: Partially exempt—not particularly generous.
Property taxes: Low rates, limited veteran-specific exemptions.

VA Healthcare

Fargo VA Health Care System is the main facility.
It's small and basic—adequate for primary care, not much else.
Specialty care often requires travel to Minneapolis or elsewhere.

Cost of Living

North Dakota is affordable, though the oil boom drove up costs in certain areas (Williston, Minot). Overall, it's still cheap compared to most states.

Who Should Move Here

Veterans working in oil/gas or agriculture
Anyone who wants safety and low crime
Folks who value economic stability
Veterans who don't need much VA care

Who Should Avoid It

Anyone who needs robust VA healthcare
Veterans who hate extreme cold (it's routinely -20°F in winter)
People who want variety and culture

Bottom Line: North Dakota is economically strong but offers minimal veteran benefits and very limited VA access.

#9: Minnesota - Progressive, Expensive, Mixed Benefits

Winner: Good VA care (Minneapolis), strong economy, high quality of life.

Loser: High taxes, modest exemptions, cold winters.

Minnesota is a well-run state with a high quality of life—but it's not particularly generous to veterans financially.

Tax Treatment

Military retirement: Partially exempt (varies by income and age).
Property taxes: High rates, limited veteran exemptions.
State income tax: Progressive rates up to 9.85% (among the highest).

VA Healthcare

Minneapolis VA Health Care System is excellent—large, well-staffed, strong reputation.
St. Cloud VA Health Care System serves central Minnesota.
Good coverage statewide.

Cost of Living

Twin Cities (Minneapolis-St. Paul) are expensive—housing, taxes, and general costs run high. Rural Minnesota is cheaper but still not rock-bottom.

Who Should Move Here

Veterans who prioritize quality of life and good governance
Anyone transitioning into healthcare, tech, or finance (strong Twin Cities economy)
Folks who want excellent VA care
Veterans who grew up here

Who Should Avoid It

Anyone seeking tax-friendly retirement (it's not)
Veterans on tight budgets
People who hate cold winters (it's Minnesota—expect brutal cold)

Bottom Line: Minnesota is a high-quality-of-life state, but taxes and costs outweigh the veteran benefits for most retirees.

#10: Missouri - Show Me the Benefits

Winner: Low cost of living, decent VA access (St. Louis, Kansas City), central location.

Loser: Tax exemption is capped at $37,720, property tax breaks vary widely, inconsistent quality of life.

Missouri is affordable and centrally located—but the veteran benefits are middle-of-the-road.

Tax Treatment

Military retirement: Exempt up to $37,720. Anything above that is taxed.
Property taxes: Vary widely by county; some offer veteran exemptions, others don't.

VA Healthcare

VA St. Louis Health Care System (John Cochran Division, Jefferson Barracks) is solid.
Kansas City VA Medical Center serves western Missouri.
Columbia VA is smaller but adequate.

Coverage is decent in urban areas, weaker in rural regions.

Cost of Living

Missouri is cheap—especially outside St. Louis and Kansas City. You can buy a house for under $150K in many areas.

Who Should Move Here

Veterans who want affordability and central location
Anyone who doesn't need maximum tax exemptions
Folks who grew up in the Midwest

Who Should Avoid It

High-earning retirees (the $37K cap means you'll pay state tax on anything above)
Veterans seeking strong property tax relief
People who want consistently high quality of life statewide (Missouri varies widely)

Bottom Line: Missouri is affordable and practical, but the benefits don't stand out.

#11: Kansas - Flyover State Reality

Winner: Low cost of living, safe communities, decent education benefits.

Loser: Tax exemption capped at $25,000, limited VA care, limited job market.

Kansas is quiet, affordable, and safe—but it doesn't offer much to veterans beyond low costs.

Tax Treatment

Military retirement: Exempt up to $25,000. Anything above that is taxed at full state rates.
Property taxes: Moderate rates, modest veteran exemptions.

VA Healthcare

VA Eastern Kansas Health Care System (Topeka, Leavenworth) is adequate for basic care.
Wichita VA Clinic offers outpatient services.
Specialty care often requires travel to Kansas City or elsewhere.

Cost of Living

Kansas is cheap—you can buy a house for under $150K in most areas. Property taxes are reasonable.

Who Should Move Here

Veterans who prioritize low cost of living and safety
Anyone who wants small-town living
Folks who don't need much VA care

Who Should Avoid It

High-earning retirees (the $25K cap is weak)
Veterans who need robust VA care
Anyone who wants job opportunities or urban amenities

Bottom Line: Kansas is affordable and safe, but veteran benefits are weak. Only move here if you have personal ties or love rural living.

#12: Nebraska - Huskers and Modest Benefits

Winner: Low cost of living, safe communities, decent education benefits.

Loser: Weak tax exemption, limited VA care, limited job market.

Nebraska rounds out the list—affordable and safe, but offering minimal veteran benefits.

Tax Treatment

Military retirement: Partially exempt (up to 40% exclusion, phasing out at higher incomes). It's convoluted and weak.
Property taxes: Moderate rates, limited veteran exemptions.

VA Healthcare

VA Nebraska-Western Iowa Health Care System (Omaha, Lincoln, Grand Island) offers basic care.
Specialty care is limited—often requires travel.

Cost of Living

Nebraska is cheap—especially outside Omaha and Lincoln. Housing is affordable, property taxes are reasonable.

Who Should Move Here

Veterans who want ultra-low cost of living
Anyone who values safety and community
Folks who grew up here

Who Should Avoid It

Veterans seeking strong tax exemptions (Nebraska's is weak)
Anyone who needs robust VA care
People who want variety and culture

Bottom Line: Nebraska is affordable and safe, but veteran benefits are weak. It's a lifestyle choice, not a financial optimization.

The Midwest Bottom Line

The Midwest isn't flashy—it won't offer Florida's beaches or Texas's swagger. But it delivers something critical: affordability.

Your military retirement will stretch further here than in most coastal states. Housing is cheap. Property taxes (outside Illinois) are manageable. Cost of living is low.

The standouts:

Indiana – Full military retirement exemption, low costs, decent VA care. Best all-around Midwest pick.
Wisconsin – Strong partial exemption, good property tax relief, solid VA access.
Iowa – Full exemption, ultra-low costs, quiet rural living.
Michigan – High exemption cap ($59,960), excellent VA care in Detroit/Ann Arbor.

The disappointments:

Nebraska – Weak exemption, limited VA care.
Kansas – Low exemption cap ($25K), limited services.
Illinois – Great VA care, but property taxes will wreck you.

If you're tied to the Midwest or want affordability over beaches and sun, focus on Indiana, Wisconsin, Iowa, or Michigan. They offer the best balance of benefits, costs, and VA access.

For interactive comparisons with cost of living calculators, visit militarytransitiontoolkit.com/state-benefits.

The Midwest won't wow you, but it'll let you live comfortably without bleeding your retirement dry. Sometimes that's exactly what you need.

Midwest Veteran Benefits: 12 States Compared

The veteran benefits are hit or miss—some states try hard, others phone it in. But when you factor in affordability, several Midwest states become genuinely attractive options.

Quick Rankings: Midwest States Comparison

Rank	State	Income Tax on Military Retirement	Property Tax Situation	VA Healthcare	Cost of Living	Overall Grade
1	South Dakota	None (no income tax)	100% disabled only	Limited	Very low	A-
2	Indiana	Fully exempt	Deduction for disabled vets	Good	Very low	B+
3	Wisconsin	Partially exempt (strong)	Good exemptions	Good	Moderate	B+
4	Iowa	Fully exempt	Varies by county	Good	Low	B
5	Michigan	Up to $59,960 exempt	Partial exemptions	Very good	Moderate	B
6	Illinois	Fully exempt	Varies widely	Excellent (Chicago area)	Moderate	B-
7	Ohio	Partially exempt	Limited	Very good	Low	B-
8	North Dakota	Partially exempt	Limited	Very limited	Low	C+
9	Minnesota	Partially exempt	Limited	Good	Moderate	C+
10	Missouri	Up to $37,720 exempt	Varies	Good	Low	C+
11	Kansas	Up to $25,000 exempt	Modest exemptions	Limited	Low	C
12	Nebraska	Partially exempt (weak)	Limited	Limited	Low	C

Compare all 50 states in detail: militarytransitiontoolkit.com/state-benefits

#1: South Dakota - The Midwest's No-Tax Champion

Winner: Zero income tax, ultra-low cost of living, personal freedom.

Loser: Limited VA care, harsh winters, property tax breaks only for 100% disabled vets.

South Dakota made our Top 10 national list, and it's the clear winner in the Midwest. (Full breakdown in that post, but here's the regional context.)

Why It Leads the Region

No state income tax (never has been, never will be).
Rock-bottom cost of living—you can buy land and a house for shockingly little.
100% disabled veterans get property tax exemptions; others don't.
Personal freedom—minimal regulations, strong 2A culture.

The Healthcare Trade-Off

VA care is limited—Fort Meade VA (near Sturgis) is the only full hospital. If you need frequent care, this is a problem.

Who Should Choose South Dakota

Veterans who want zero income tax and don't need much VA care
Folks seeking independence and wide-open spaces
Anyone who loves the outdoors (hunting, fishing, motorcycles)

Bottom Line: South Dakota is the Midwest's tax haven—great if you're healthy and independent.

#2: Indiana - The Quiet Overachiever

Winner: Military retirement fully exempt from state income tax, very low cost of living, decent VA access.

Loser: Property tax exemptions are modest, limited job market outside Indy.

Indiana flies under the radar, but it's arguably the best all-around Midwest option for veterans.

Tax Treatment

Military retirement income: 100% exempt from state income tax.
Disability pay: Also fully exempt.
Property taxes: Disabled veterans (at least 10% rating) can get a $24,960 deduction from assessed value. It's not huge, but it helps.

Cost of Living

Indiana is cheap. You can buy a solid house in most of the state for well under $200K. Property taxes are reasonable. Utilities are low. Your military retirement will stretch far here.

Even Indianapolis (the largest city) is affordable compared to most metro areas.

VA Healthcare

Richard L. Roudebush VA Medical Center (Indianapolis) is excellent—one of the better VA hospitals in the Midwest.
VA Northern Indiana Health Care System (Fort Wayne, Marion) serves the northern part of the state.
Several outpatient clinics statewide.

Coverage is solid, especially if you're near Indy or Fort Wayne.

Job Market

Indianapolis has a decent job market—healthcare, logistics, manufacturing, and some tech. Outside Indy, opportunities are more limited but cost of living is even lower.

Who Should Move Here

Veterans who want full military retirement tax exemption without leaving the Midwest
Anyone seeking ultra-low cost of living
Folks who want decent VA access and don't need to be in a major city
Veterans who value practicality over flash

Who Should Avoid It

Anyone who needs urban excitement (Indy is nice, but it's not Chicago)
Veterans who hate cold winters
Job seekers in niche fields (opportunities are limited outside healthcare/logistics)

Bottom Line: Indiana is a sleeper hit—full tax exemption, low costs, good VA care. It's practical, affordable, and quietly veteran-friendly.

#3: Wisconsin - Cheese, Beer, and Solid Benefits

Winner: Strong partial exemption, good property tax relief, decent VA care, affordable living.

Loser: High property taxes (offset by exemptions), cold winters, limited job market outside Milwaukee/Madison.

Wisconsin doesn't scream "veteran paradise," but it offers a surprisingly strong benefits package combined with Midwest affordability.

Tax Treatment

Military retirement: Income-based partial exemption. If you're 65+ and your income is under certain thresholds, you can exclude substantial amounts (often most or all of your military retirement).
Property taxes: Disabled veterans can get significant property tax credits—up to $1,500+ annually depending on disability rating and property value.

VA Healthcare

Clement J. Zablocki VA Medical Center (Milwaukee) is solid—large, well-equipped, decent reputation.
William S. Middleton Memorial Veterans Hospital (Madison) is also strong.
Outpatient clinics in Green Bay, Appleton, Chippewa Falls, and elsewhere.

Coverage is good across most of the state.

Cost of Living

Lifestyle Considerations

If you like outdoor activities—hunting, fishing, boating, camping—Wisconsin delivers. Winters are brutal (think below zero for weeks), but summers are gorgeous.

Who Should Move Here

Veterans who want decent benefits and affordability
Anyone who loves the outdoors and doesn't mind cold
Folks who want access to decent VA care without big-city chaos
Packers fans (it's basically a religion here)

Who Should Avoid It

Anyone who hates cold, snowy winters
Veterans seeking maximum tax savings (it's good, not great)
Job seekers outside healthcare/manufacturing (opportunities are limited)

Bottom Line: Wisconsin is a solid, affordable option with better benefits than most of the Midwest. It punches above its weight.

#4: Iowa - Affordable and Veteran-Friendly

Winner: Military retirement fully exempt, low cost of living, decent VA access.

Loser: Limited job market, rural isolation, not much to do.

Iowa is quiet, affordable, and treats military retirement income well.

Tax Treatment

Military retirement: 100% exempt from state income tax.
Property taxes: Vary widely by county; some offer veteran exemptions, others don't.

VA Healthcare

VA Central Iowa Health Care System (Des Moines) is solid.
Iowa City VA serves eastern Iowa and has ties to the University of Iowa Hospitals (excellent care).
Outpatient clinics scattered around the state.

Cost of Living

Iowa is cheap. Housing is affordable, property taxes are reasonable (for the Midwest), and general living costs are low. Your retirement dollars go far here.

Lifestyle Reality

Who Should Move Here

Veterans who want full tax exemption and ultra-low costs
Anyone seeking a quiet, rural lifestyle
Folks who grew up in the Midwest and want to stay
Veterans who don't need frequent VA care beyond routine

Who Should Avoid It

Anyone who needs urban amenities or job opportunities
Veterans who want variety and excitement
People who require frequent specialty VA care (you'll be driving)

Bottom Line: Iowa is a no-frills, affordable choice with full military retirement tax exemption. It's practical if you like rural living.

#5: Michigan - Great Lakes, Mixed Benefits

Winner: Strong partial exemption (up to $59,960), excellent VA care in Detroit/Ann Arbor, Great Lakes lifestyle.

Loser: High property taxes, rough economy outside certain areas, brutal winters.

Michigan offers strong tax treatment for military retirees and access to top-tier VA care—but the state's economy is uneven.

Tax Treatment

Military retirement: Exempt up to $59,960 (for those born after 1952). That's one of the highest caps in the nation.
Property taxes: High rates, but disabled veterans can get exemptions (varies by locality).

VA Healthcare

John D. Dingell VA Medical Center (Detroit) is excellent and has ties to Wayne State University medical programs.
VA Ann Arbor Healthcare System is outstanding—one of the best in the Midwest.
Several outpatient clinics statewide.

If you need complex or specialized VA care, Michigan delivers.

Cost of Living

Michigan is affordable in most areas—Detroit suburbs, Grand Rapids, Lansing, and rural areas offer reasonable housing costs. Property taxes are on the higher side for the Midwest, though.

Job Market

Detroit metro is rebounding (automotive, tech startups), Grand Rapids is strong (manufacturing, healthcare), but rust belt areas like Flint and Saginaw are still struggling.

Who Should Move Here

Veterans who want a strong tax exemption and excellent VA care
Anyone who loves the Great Lakes lifestyle (boating, fishing, beaches)
Folks who want four seasons and don't mind cold winters
Veterans transitioning into automotive or manufacturing careers

Who Should Avoid It

Anyone seeking a booming economy statewide (it's patchy)
Veterans who hate cold, snowy winters
People who want low property taxes

Bottom Line: Michigan is a solid choice if you're near Detroit or Ann Arbor and prioritize VA healthcare quality and reasonable tax exemptions.

#6: Illinois - Great VA Care, Brutal Taxes

Winner: Military retirement fully exempt, Chicago VA system is excellent, strong economy (Chicago).

Loser: High property taxes (worst in some areas), financial instability, outmigration.

Illinois is a paradox—it fully exempts military retirement but also has crushing property taxes and a reputation for fiscal mismanagement.

Tax Treatment

Military retirement: 100% exempt from state income tax.
Property taxes: Among the highest in the nation (especially Chicago suburbs). Veteran exemptions vary by county and are often modest.

VA Healthcare

Jesse Brown VA Medical Center (Chicago) is excellent.
Edward Hines Jr. VA Hospital (suburban Chicago) is one of the largest and best in the Midwest.
Captain James A. Lovell Federal Health Care Center (North Chicago) is a combined VA/Navy facility—unique and well-regarded.
Outpatient clinics downstate (Peoria, Springfield, Marion).

If you're in the Chicago area, you have access to world-class VA care.

Cost of Living

Chicago and suburbs are expensive—especially property taxes (routinely $8K-$12K annually even on modest homes). Downstate Illinois is much cheaper.

The Exodus Problem

Illinois has had net outmigration for years—people are leaving due to taxes and political dysfunction. That's a red flag.

Who Should Move Here

Veterans who need excellent VA care and live in/near Chicago
Anyone transitioning into finance, tech, or healthcare (Chicago has jobs)
Folks who grew up here and want to stay near family

Who Should Avoid It

Retirees on fixed incomes (property taxes will crush you)
Anyone seeking financial stability and good governance
Veterans who don't need the Chicago job market or VA system

Bottom Line: Illinois offers full military retirement tax exemption and great VA care, but property taxes and state finances make it hard to recommend.

#7: Ohio - Decent Access, Mixed Benefits

Winner: Low cost of living, decent VA access (Cleveland, Cincinnati, Dayton), central location.

Loser: Partial tax exemption isn't great, limited property tax relief, inconsistent economy.

Ohio is smack in the middle—geographically and in terms of veteran benefits.

Tax Treatment

Military retirement: Partially exempt—varies by age and income. Generally, you'll pay some state income tax.
Property taxes: Moderate rates, limited veteran-specific exemptions.

VA Healthcare

Louis Stokes Cleveland VA Medical Center is excellent and affiliated with Case Western Reserve.
Cincinnati VA Medical Center is solid.
Dayton VA Medical Center serves southwest Ohio.
Outpatient clinics scattered across the state.

Coverage is good, especially in urban areas.

Cost of Living

Ohio is affordable—especially outside Columbus, Cleveland, and Cincinnati. You can buy a house for under $150K in many areas.

Job Market

Columbus is growing (tech, healthcare, logistics). Cleveland and Cincinnati are stable but not booming. Rust belt areas are struggling.

Who Should Move Here

Veterans who want low cost of living with decent VA access
Anyone who wants to be centrally located (within a day's drive of half the U.S. population)
Folks who grew up in the Midwest and want to stay

Who Should Avoid It

Veterans seeking strong tax exemptions (Ohio's is weak)
Anyone who wants a booming economy
People who hate gray, dreary winters

Bottom Line: Ohio is fine—affordable, decent VA access, but the benefits package isn't impressive.

#8: North Dakota - Oil Boom, Limited Benefits

Winner: Low cost of living, strong economy (oil industry), safe communities.

Loser: Very limited VA care, brutal winters, partial tax exemption.

North Dakota boomed with the oil industry and remains economically strong—but it's isolated and offers limited veteran benefits.

Tax Treatment

Military retirement: Partially exempt—not particularly generous.
Property taxes: Low rates, limited veteran-specific exemptions.

VA Healthcare

Fargo VA Health Care System is the main facility.
It's small and basic—adequate for primary care, not much else.
Specialty care often requires travel to Minneapolis or elsewhere.

Cost of Living

North Dakota is affordable, though the oil boom drove up costs in certain areas (Williston, Minot). Overall, it's still cheap compared to most states.

Who Should Move Here

Veterans working in oil/gas or agriculture
Anyone who wants safety and low crime
Folks who value economic stability
Veterans who don't need much VA care

Who Should Avoid It

Anyone who needs robust VA healthcare
Veterans who hate extreme cold (it's routinely -20°F in winter)
People who want variety and culture

Bottom Line: North Dakota is economically strong but offers minimal veteran benefits and very limited VA access.

#9: Minnesota - Progressive, Expensive, Mixed Benefits

Winner: Good VA care (Minneapolis), strong economy, high quality of life.

Loser: High taxes, modest exemptions, cold winters.

Minnesota is a well-run state with a high quality of life—but it's not particularly generous to veterans financially.

Tax Treatment

Military retirement: Partially exempt (varies by income and age).
Property taxes: High rates, limited veteran exemptions.
State income tax: Progressive rates up to 9.85% (among the highest).

VA Healthcare

Minneapolis VA Health Care System is excellent—large, well-staffed, strong reputation.
St. Cloud VA Health Care System serves central Minnesota.
Good coverage statewide.

Cost of Living

Twin Cities (Minneapolis-St. Paul) are expensive—housing, taxes, and general costs run high. Rural Minnesota is cheaper but still not rock-bottom.

Who Should Move Here

Veterans who prioritize quality of life and good governance
Anyone transitioning into healthcare, tech, or finance (strong Twin Cities economy)
Folks who want excellent VA care
Veterans who grew up here

Who Should Avoid It

Anyone seeking tax-friendly retirement (it's not)
Veterans on tight budgets
People who hate cold winters (it's Minnesota—expect brutal cold)

Bottom Line: Minnesota is a high-quality-of-life state, but taxes and costs outweigh the veteran benefits for most retirees.

#10: Missouri - Show Me the Benefits

Winner: Low cost of living, decent VA access (St. Louis, Kansas City), central location.

Loser: Tax exemption is capped at $37,720, property tax breaks vary widely, inconsistent quality of life.

Missouri is affordable and centrally located—but the veteran benefits are middle-of-the-road.

Tax Treatment

Military retirement: Exempt up to $37,720. Anything above that is taxed.
Property taxes: Vary widely by county; some offer veteran exemptions, others don't.

VA Healthcare

VA St. Louis Health Care System (John Cochran Division, Jefferson Barracks) is solid.
Kansas City VA Medical Center serves western Missouri.
Columbia VA is smaller but adequate.

Coverage is decent in urban areas, weaker in rural regions.

Cost of Living

Missouri is cheap—especially outside St. Louis and Kansas City. You can buy a house for under $150K in many areas.

Who Should Move Here

Veterans who want affordability and central location
Anyone who doesn't need maximum tax exemptions
Folks who grew up in the Midwest

Who Should Avoid It

High-earning retirees (the $37K cap means you'll pay state tax on anything above)
Veterans seeking strong property tax relief
People who want consistently high quality of life statewide (Missouri varies widely)

Bottom Line: Missouri is affordable and practical, but the benefits don't stand out.

#11: Kansas - Flyover State Reality

Winner: Low cost of living, safe communities, decent education benefits.

Loser: Tax exemption capped at $25,000, limited VA care, limited job market.

Kansas is quiet, affordable, and safe—but it doesn't offer much to veterans beyond low costs.

Tax Treatment

Military retirement: Exempt up to $25,000. Anything above that is taxed at full state rates.
Property taxes: Moderate rates, modest veteran exemptions.

VA Healthcare

VA Eastern Kansas Health Care System (Topeka, Leavenworth) is adequate for basic care.
Wichita VA Clinic offers outpatient services.
Specialty care often requires travel to Kansas City or elsewhere.

Cost of Living

Kansas is cheap—you can buy a house for under $150K in most areas. Property taxes are reasonable.

Who Should Move Here

Veterans who prioritize low cost of living and safety
Anyone who wants small-town living
Folks who don't need much VA care

Who Should Avoid It

High-earning retirees (the $25K cap is weak)
Veterans who need robust VA care
Anyone who wants job opportunities or urban amenities

Bottom Line: Kansas is affordable and safe, but veteran benefits are weak. Only move here if you have personal ties or love rural living.

#12: Nebraska - Huskers and Modest Benefits

Winner: Low cost of living, safe communities, decent education benefits.

Loser: Weak tax exemption, limited VA care, limited job market.

Nebraska rounds out the list—affordable and safe, but offering minimal veteran benefits.

Tax Treatment

Military retirement: Partially exempt (up to 40% exclusion, phasing out at higher incomes). It's convoluted and weak.
Property taxes: Moderate rates, limited veteran exemptions.

VA Healthcare

VA Nebraska-Western Iowa Health Care System (Omaha, Lincoln, Grand Island) offers basic care.
Specialty care is limited—often requires travel.

Cost of Living

Nebraska is cheap—especially outside Omaha and Lincoln. Housing is affordable, property taxes are reasonable.

Who Should Move Here

Veterans who want ultra-low cost of living
Anyone who values safety and community
Folks who grew up here

Who Should Avoid It

Veterans seeking strong tax exemptions (Nebraska's is weak)
Anyone who needs robust VA care
People who want variety and culture

Bottom Line: Nebraska is affordable and safe, but veteran benefits are weak. It's a lifestyle choice, not a financial optimization.

The Midwest Bottom Line

The Midwest isn't flashy—it won't offer Florida's beaches or Texas's swagger. But it delivers something critical: affordability.

Your military retirement will stretch further here than in most coastal states. Housing is cheap. Property taxes (outside Illinois) are manageable. Cost of living is low.

The standouts:

Indiana – Full military retirement exemption, low costs, decent VA care. Best all-around Midwest pick.
Wisconsin – Strong partial exemption, good property tax relief, solid VA access.
Iowa – Full exemption, ultra-low costs, quiet rural living.
Michigan – High exemption cap ($59,960), excellent VA care in Detroit/Ann Arbor.

The disappointments:

Nebraska – Weak exemption, limited VA care.
Kansas – Low exemption cap ($25K), limited services.
Illinois – Great VA care, but property taxes will wreck you.

If you're tied to the Midwest or want affordability over beaches and sun, focus on Indiana, Wisconsin, Iowa, or Michigan. They offer the best balance of benefits, costs, and VA access.

For interactive comparisons with cost of living calculators, visit militarytransitiontoolkit.com/state-benefits.

The Midwest won't wow you, but it'll let you live comfortably without bleeding your retirement dry. Sometimes that's exactly what you need.