Which state is better for veterans — New Jersey 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. New Jersey does not tax military retirement pay, while Arizona does not tax military retirement pay. On property, New Jersey offers a full homestead exemption to 100% P&T veterans, and Arizona offers a partial property tax reduction.
If you have school-age children
New Jersey's headline program is the NJ World Trade Center Scholarship & POW/MIA Tuition Benefit — New Jersey provides free undergraduate tuition at New Jersey public colleges for dependents of NJ residents killed in terrorist attacks or military service, and for POW/MIA dependents. 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. New Jersey hosts 3 significant installation(s) including Joint Base McGuire-Dix-Lakehurst, Picatinny Arsenal, USCG Training Center Cape May.Arizona hosts 4 including Luke AFB, Davis-Monthan AFB, Fort Huachuca.
Climate and lifestyle
New Jersey: Mid-Atlantic climate; four moderate seasons with humid summers and cold winters. Arizona: Hot desert summers and mild winters; minimal humidity. Higher elevations (Flagstaff, Prescott) offer four seasons.