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VA Help Guide

New Mexico vs Alaska Veterans Benefits

Side-by-side comparison of every major state-level veteran benefit. Use this to evaluate whether New Mexico or Alaska is the better fit for your retirement, PCS, or post-service relocation.

BenefitNew MexicoAlaska
Military retirement pay taxPartial exclusionNo state income tax
Property tax for 100% disabled vetFull exemption on homesteadPartial reduction
Property tax detail100% service-connected disabled veterans receive a 100% property tax exemption on their primary residence (constitutional amendment passed 2022).Disabled veterans rated 50% or higher receive a $150,000 property tax exemption on their primary residence.
Veteran population (approx)155,00065,000
Cost of livinglowhigh
ClimateHigh desert climate with sunny days, low humidity, cool nights, and varied terrain from desert to alpine.Long, cold winters and short summers; limited daylight in winter months. Best suited for veterans who want wilderness access and a small-town pace.
Top education benefitNew Mexico Vietnam Veterans Scholarship & Children of Deceased VeteransAlaska National Guard / Veteran Tuition Waiver
State veteran homes11
State veterans cemeteries32
Major military installationsKirtland AFB, Holloman AFB, Cannon AFB, White Sands Missile RangeJoint Base Elmendorf-Richardson (JBER), Eielson AFB, Fort Wainwright, Fort Greely
State park access (disabled vet)Free NM State Parks annual pass for honorably discharged disabled veterans.Disabled veterans receive free or reduced camping fees at Alaska State Parks.
Hunting / fishingResident 100% disabled veterans qualify for free fishing licenses and reduced-fee hunting licenses.Resident disabled veterans qualify for free hunting, trapping, and sport fishing licenses; non-resident active-duty stationed in Alaska pay resident fees.
State agencyNew Mexico Department of Veterans Services (DVS)Alaska Office of Veterans Affairs
Agency phone505-383-2400907-334-0874

Which state is better for veterans — New Mexico or Alaska?

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 Mexico taxes military retirement pay (new mexico exempts up to $30,000 (single)/$45,000 (joint) of military retirement income (2024+, phased increase). most retirees see full exclusion.), while Alaska does not tax military retirement pay. On property, New Mexico offers a full homestead exemption to 100% P&T veterans, and Alaska offers a partial property tax reduction.

If you have school-age children

New Mexico's headline program is the New Mexico Vietnam Veterans Scholarship & Children of Deceased Veterans — New Mexico offers scholarships for Vietnam veterans pursuing undergraduate study at NM public colleges, plus tuition waivers for children of NM veterans killed in service or POW/MIA. Alaska's is the Alaska National Guard / Veteran Tuition Waiver — The University of Alaska waives tuition for qualifying National Guard members and offers reduced-cost programs for veterans and dependents. The state also participates in the WUE regional tuition program.

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 Mexico hosts 4 significant installation(s) including Kirtland AFB, Holloman AFB, Cannon AFB.Alaska hosts 4 including Joint Base Elmendorf-Richardson (JBER), Eielson AFB, Fort Wainwright.

Climate and lifestyle

New Mexico: High desert climate with sunny days, low humidity, cool nights, and varied terrain from desert to alpine. Alaska: Long, cold winters and short summers; limited daylight in winter months. Best suited for veterans who want wilderness access and a small-town pace.

Other comparisons

Verify current benefits with each state's official veterans agency. State programs and dollar amounts change as legislatures pass new laws.