Which state is better for veterans — Illinois or Arizona?
There's no universal answer; the better state depends on your priorities. Below are the factors that most often decide the question.
If you're a military retiree
Both retirement income tax and property tax matter most in retirement. Illinois does not tax military retirement pay, while Arizona does not tax military retirement pay. On property, Illinois offers a full homestead exemption to 100% P&T veterans, and Arizona offers a partial property tax reduction.
If you have school-age children
Illinois's headline program is the Illinois Veteran Grant (IVG) & MIA/POW Scholarship — The IVG pays tuition and certain fees at Illinois public universities and community colleges for eligible Illinois veterans. The MIA/POW Scholarship covers tuition/fees for dependents of veterans who died/were disabled from service. Arizona's is the Arizona National Guard Tuition Reimbursement Program — Reimburses tuition for Arizona National Guard members at state schools. Veterans can use the Post-9/11 GI Bill at Arizona public colleges with in-state tuition under the Yellow Ribbon and federal Choice Act.
If you're still on active duty
Proximity to a major installation matters for housing markets, healthcare options (Tricare), and post-service employment networks. Illinois hosts 3 significant installation(s) including Naval Station Great Lakes, Scott AFB, Rock Island Arsenal.Arizona hosts 4 including Luke AFB, Davis-Monthan AFB, Fort Huachuca.
Climate and lifestyle
Illinois: Continental climate with cold winters and warm humid summers. Arizona: Hot desert summers and mild winters; minimal humidity. Higher elevations (Flagstaff, Prescott) offer four seasons.