Which state is better for veterans — Illinois or California?
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 California taxes military retirement pay (california taxes military retirement pay as ordinary income — one of the few states that still does.). On property, Illinois offers a full homestead exemption to 100% P&T veterans, and California 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. California's is the CalVet College Fee Waiver — Waives mandatory system-wide tuition and fees at any California Community College, California State University, or University of California campus for qualifying dependents of disabled or deceased veterans. Multiple plans (A, B, C, D) cover different family situations.
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.California hosts 8 including Camp Pendleton, MCAGCC Twentynine Palms, Naval Base San Diego.
Climate and lifestyle
Illinois: Continental climate with cold winters and warm humid summers. California: Climate varies dramatically — Mediterranean coast, hot Central Valley, alpine Sierra Nevada, desert south.