Top States for Veterans in 2026

When you buy a home using your VA loan benefits, zero down, no private mortgage insurance (PMI), and competitive interest rates are only part of the equation. Other factors, such as housing affordability, a robust military community, and state and local tax benefits can make one state stand out over another.

Read on to find out the best states for veterans using VA loans in 2026

Best States for Veterans Using VA Loans in 2026

Your VA loan entitlement benefits are standard across all U.S. states. However, some states stand out because they pair your VA loan benefits with state and local tax advantages, and affordable housing to significantly lower your monthly housing costs.

Texas

Texas is often considered a strong option for VA buyers because it combines no state income tax, a large military presence, and several veteran housing programs, such as the Veterans Housing Assistance Program (VHAP).

Reasons Texas is best for veterans using a VA loan:

• Zero-Down Payment: Median home prices for most major metro areas are well below the VA loan limit, allowing for zero-down payment power.
• Tax Trade Off: There is no state tax on wages, but property taxes are among the highest in the nation.
• VHAP Stacking: You can combine your VA loan with the VHAP, which offers below-market-value interest rates on VA home loans.

Florida

If you are a veteran, active-duty service member, or eligible surviving spouse looking to buy a home in Florida, a VA loan should definitely be high on your list of financing options.

Florida ranks high on our best state list for several reasons:

• Greater Purchasing Power: No state income tax means your net pay is higher, which helps your debt-to-income ratio. This qualifies you for a larger loan amount.
• Disability Tax Exemptions: The state provides 100% property tax exemptions for disabled veterans who have a 100% service-connect disability.
• Large Inventory: Florida offers a huge inventory of VA-friendly housing markets.
• Florida Hometown Heroes Housing Program: This program provides income-eligible veterans with assistance of up to 5% of the loan amount (ranging from $10,000 to $35,000) towards down payment and closing costs.

North Carolina

North Carolina rates as one of the best states for veterans using a VA loan because they have relatively modest housing prices, a large military population, and excellent veteran benefits.

Three reasons North Carolina is veteran VA loan friendly:

• Top Volume Market: North Carolina is third in the country in military presence and a top-market for VA loans. This means home sellers and realtors are highly knowledgeable about the VA home loan program.
• Affordability: Home prices in the state keep VA mortgage payments well within the budget of most military members.
• No Tax on Military Retirement Pay: North Carolina does not tax your military retirement, making it easier to qualify for a VA loan.

Virginia

Virginia makes its mark on best states for veterans because of the vast military presence, thriving veteran communities and strong state programs.

Here are some of Virginia’s veteran-friendly programs and incentives:

• Strong Market: Virginia ranked fourth in 2025 for VA loan volume. This shows that lenders in most areas near military installations are extremely familiar with the VA loan process.
• Property Tax Exemptions: The state offers full property tax exemptions on your primary residence if you have a 100% service-connected disability.
• VA Loan Assumptions: Because of the high volume of military members in the state, you have a great chance to find a VA loan you can assume. This allows you take over the seller’s existing lower, locked-in rate.

Tennessee

Tennessee rounds out our list of best states for veterans using VA loans because of their lower average cost of living and bustling housing market.

Here are some more reasons Tennessee makes the list:

• No State Income Tax: Tennessee does not tax military retirement pay. This improves your debt-to-income ratio, making it easier to qualify for a VA loan.
• Basic Allowance for Housing (BAH): If you are active-duty, many lenders will count BAH as qualifying income because it shows up straight from your LES.
• Great Choice Plus Program: A program that helps homebuyers cover down payment and closing costs.You must meet eligibility and financial need requirements.

Most Affordable States for VA Buyers

Your VA loan already eliminates down payments, PMI, and offers reduced interest rates. To discover the most affordable states for VA buyers, we need to pair those benefits with states that offer low home prices, property tax, and cost of living, as well as strong veterans benefits.

West Virginia

West Virginia is high on the list of most affordable states for one reason; they have the lowest median home prices in the nation and ultra-low property taxes. Low competition in the market will also give you an excellent chance to get the seller to pay your closing costs.

Alabama

Alabama is also a pure price leader, with the one of the lowest property tax rates in the country. If you are in the tech or defense business, Huntsville offers great opportunities to stretch your VA loan purchasing power.

Texas

For veterans using a VA loan Texas offers great benefits, such as 100% property tax elimination, no state income tax, and high BAH areas around major military bases. Also, if you are 100% VA disabled, you can save thousands of dollars in property taxes, making higher-priced homes a realistic option.

Iowa

Iowa is among the most affordable states in the nation for veterans looking to use their VA loan benefits. With low median home prices and property taxes, coupled with Iowa’s Homeownership Assistance Grant and Disabled Veteran Homestead credit, you can cut upfront and ongoing costs further than almost any other state.

Best States for Military Retirement

When you are nearing retirement, you finally get to decide where to live rather than letting the military choose for you. The best states for military retirement generally feature:

• No tax on retiree pay
• Accessibility to VA or military healthcare
• Strong veteran employment and benefit programs
• Property tax exemption
• Cost of living
• Housing market

These states stand out for military retirees:

South Carolina

South Carolina came out on top because of the low cost of living, large military communities, state tax exemption on military retirement pay, and strong VA loan markets around major bases in Charleston and Columbia.

Virginia

VA loans are extremely common in the state, making it easy to use your VA loan entitlement. If you want to retire from the military and transition into a high-paying civilian or defense contractor job then Virginia may be for you.

Texas

Texas ranks high on the list because of high affordability of housing for VA buyers. Paired with no state income tax on your military retirement pay and 2026 home price cuts in metro cities, Texas give VA buyers extra leverage when looking for a house.

Florida

Florida rounds out our list of best states to retire in. Florida ranks high because of strong access to military healthcare and no state tax on your retiree pay. Also, in 2026, markets around major installations in Tampa and Jacksonville are seeing cuts in home prices, providing you with some negotiating power.

Property Tax Exemptions for Disabled Veterans

Every state offers some degree of property tax relief for disabled veterans. Many of these states will even waive the entire property tax bill for veterans with a 100% service-connected, permanent, and total VA disability rating. Other states will offer partial exemptions based on your disability rating percentage or income.

What most veterans don’t know is that property tax exemptions are typically not automatic, and veterans must apply for relief and get approval from their county administrator. The exemption in most cases applies to the tax year after the exemption has been granted.

Which States Have Full Property Tax Exemptions for Disabled Veterans?

The following states offer complete homestead property tax exemption for veterans with a 100% service-connected VA disability rating:

• Alabama
• Arizona
• Arkansas
• Connecticut
• Florida
• Hawaii
• Illinois
• Iowa
• Louisiana
• Maryland
• Michigan
• Mississippi
• Nebraska
• New Hampshire
• New Jersey
• New Mexico
• Oklahoma
• Pennsylvania
• South Carolina
• Texas
• Virginia
• Wisconsin

Click here to see the VA’s full list of property tax exemptions by state.

Best Housing Markets Near Major Bases

If you have orders to Texas, Florida, Virginia, South Carolina or Georgia, you might want to seriously look into buying a home instead rather than moving into military base housing. These housing markets near major military installations offer stable investments and affordable homes, as well as favorable local economies, and access to an ample supply of military-friendly lenders.

In addition to the benefits of a VA loan, you will have ready access to all of the services that a major military base offers, such as base exchanges and commissaries, Morale Welfare and Recreation (MWR) facilities, and a full range of medical facilities. This is particularly true if you are a military retiree.

Here is our top four:

San Antonio, TX (Joint Base San Antonio)

This market is consistently ranked at the top because of its long-standing military culture and VA-loan volume. Known as “Military City USA,” San Antonio has a robust housing market with great inventory, high-demand, and strong resale value.

Jacksonville, FL(NAS Jacksonville, Naval Station Mayport)

Jacksonville ranks near the top of our list because of a strong balance of affordable and available housing. Almost half of the available listings in 2026 are affordable for a median-income family, and the number of listings provides you with more flexibility than other markets near major bases.

Columbia South Carolina (Fort Jackson)

Columbia boasts high military homeownership and one of the the lowest unemployment rate among markets near major bases. Fort Jackson has a continuous inflow of short-term housing demand and average entry price of $255,000. This makes Columbia a great market for younger military families.

Virginia Beach, VA (Naval Station Norfolk, NAS Oceana, Joint Expeditionary Base Little Creek-Fort Story)

Oddly, the Hampton Roads housing market is stable because of the constant PCS cycle and strong tourism with median home prices around $400,000. With generous BAH for mid-level enlisted members, most military members can build equity and cover their VA mortgage if they choose to rent after they PCS.

State-by-State Comparison Table

Here is a 50-state guide to what VA buyers need to know when relocating or retiring, and the major military installations that drive real estate demand in each state.

Note: All median home prices in this guide were collected from the Zillow Home Value Index, last updated Jan. 31, 2026, at the time of writing.

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FAQ

Q: What factors determine the best states for veterans using VA loans?

The best states for VA loan users combine housing affordability, strong veteran tax incentives, a heavy military presence, and highly experienced lending environments. While federal benefits remain consistent, top states lower your monthly housing costs by pairing your zero-down advantage with favorable local property tax cuts and state-specific grants.

Q: Which states offer full property‑tax exemptions for 100% disabled veterans?

There are 22 states that offer complete homestead property‑tax exemptions for veterans with a 100% service‑connected disability rating, including: Alabama, Arizona, Arkansas, Connecticut, Florida, Hawaii, Illinois, Iowa, Louisiana, Maryland, Michigan, Mississippi, Nebraska, New Hampshire, New Jersey, New Mexico, Oklahoma, Pennsylvania, South Carolina, Texas, Virginia, and Wisconsin.

Q: What are the best housing markets near major military bases?

• San Antonio, TX: “Military City USA,” strong inventory and resale value
• Jacksonville, FL: Nearly half of listings affordable for median‑income families
• Columbia, SC: Low unemployment, ~$255K entry prices, and strong demand
• Virginia Beach, VA: Stable due to PCS cycles and tourism, and ~$400K median prices These markets offer affordability, strong VA loan usage, and stable long‑term value.

Q: What factors matter most when choosing a state for military retirement?

• Exemption of state income tax on military retirement pay
• Proximity to VA or military healthcare
• Veteran employment opportunities
• Generous property‑tax exemptions
• General cost of living

Q: Do VA loan benefits vary by state?

No. Your VA loan entitlement is federal, so benefits remain the same across all states. However, individual states differ drastically in tax policies, housing affordability, and localized veteran assistance programs. This is why certain states offer far greater overall financial value for VA buyers than others.