Which state is better for veterans — Vermont 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. Vermont taxes military retirement pay (vermont allows up to $10,000 exclusion on military retirement pay (income-tested) as of 2022.), while Arizona does not tax military retirement pay. On property, Vermont offers a partial property tax reduction, and Arizona offers a partial property tax reduction.
If you have school-age children
Vermont's headline program is the Vermont National Guard Tuition Benefit — Vermont National Guard members qualify for tuition assistance at the University of Vermont, Vermont State Colleges, and Community College of Vermont up to 100%. 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. Vermont hosts 1 significant installation(s) including Vermont ARNG installations (no major active-duty base).Arizona hosts 4 including Luke AFB, Davis-Monthan AFB, Fort Huachuca.
Climate and lifestyle
Vermont: Cold New England climate with snowy winters and mild summers; ideal for cold-weather outdoor sports. Arizona: Hot desert summers and mild winters; minimal humidity. Higher elevations (Flagstaff, Prescott) offer four seasons.