Which state is better for veterans — Vermont 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. Vermont taxes military retirement pay (vermont allows up to $10,000 exclusion on military retirement pay (income-tested) as of 2022.), while California taxes military retirement pay (california taxes military retirement pay as ordinary income — one of the few states that still does.). On property, Vermont offers a partial property tax reduction, and California 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%. 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. Vermont hosts 1 significant installation(s) including Vermont ARNG installations (no major active-duty base).California hosts 8 including Camp Pendleton, MCAGCC Twentynine Palms, Naval Base San Diego.
Climate and lifestyle
Vermont: Cold New England climate with snowy winters and mild summers; ideal for cold-weather outdoor sports. California: Climate varies dramatically — Mediterranean coast, hot Central Valley, alpine Sierra Nevada, desert south.