Which state is better for veterans — South Dakota 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. South Dakota 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, South Dakota offers a full homestead exemption to 100% P&T veterans, and California 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%. 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. South Dakota hosts 1 significant installation(s) including Ellsworth AFB.California hosts 8 including Camp Pendleton, MCAGCC Twentynine Palms, Naval Base San Diego.
Climate and lifestyle
South Dakota: Continental climate with cold snowy winters and warm summers. California: Climate varies dramatically — Mediterranean coast, hot Central Valley, alpine Sierra Nevada, desert south.