Which state is better for veterans — New Jersey 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. New Jersey 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, New Jersey offers a full homestead exemption to 100% P&T veterans, and California 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. 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. New Jersey hosts 3 significant installation(s) including Joint Base McGuire-Dix-Lakehurst, Picatinny Arsenal, USCG Training Center Cape May.California hosts 8 including Camp Pendleton, MCAGCC Twentynine Palms, Naval Base San Diego.
Climate and lifestyle
New Jersey: Mid-Atlantic climate; four moderate seasons with humid summers and cold winters. California: Climate varies dramatically — Mediterranean coast, hot Central Valley, alpine Sierra Nevada, desert south.