Which state is better for veterans — South Dakota 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. South Dakota does not tax military retirement pay, while Arizona does not tax military retirement pay. On property, South Dakota offers a full homestead exemption to 100% P&T veterans, and Arizona offers a partial property tax reduction.
If you have school-age children
South Dakota's headline program is the South Dakota Tuition Aid for Dependents — Free tuition at SD public colleges for dependents of SD veterans KIA/MIA/POW/100% disabled. SD National Guard members qualify for state tuition assistance up to 50%. 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. South Dakota hosts 1 significant installation(s) including Ellsworth AFB.Arizona hosts 4 including Luke AFB, Davis-Monthan AFB, Fort Huachuca.
Climate and lifestyle
South Dakota: Continental climate with cold snowy winters and warm summers. Arizona: Hot desert summers and mild winters; minimal humidity. Higher elevations (Flagstaff, Prescott) offer four seasons.