#1: New Hampshire
New Hampshire has no personal income tax, hence active duty and retired pay are not taxed. Property tax is fully exempt with 100% disability rating. The state provides educational benefits to veterans. It does exempt veterans from vehicle sales tax when purchasing a vehicle. The sales tax in New Hampshire has no sales tax. The cost of living is 1.3 more expensive than the national average.

#2: Texas
Texas has no personal income tax, hence active duty and retired pay are not taxed. Property tax is fully exempt with 100% disability rating. The state provides educational benefits to veterans. It does not exempt veterans from vehicle sales tax when purchasing a vehicle. The sales tax in Texas is 6.25-8.25%. The cost of living is only 1.06 times less expensive than the national average.

#3: Florida
Florida has no personal income tax, hence active duty and retired pay are not taxed. Property tax is fully exempt with 100% disability rating. The state provides educational benefits to veterans. It does not exempt veterans from vehicle sales tax when purchasing a vehicle. The sales tax in Florida is 6%-7.5%. The cost of living is 2% higher than the national average.

#4: Washington
Washington State has no personal income tax, hence active duty and retired pay are not taxed. Property tax is fully exempt with 100% disability rating. The state provides educational benefits to veterans. It does exempt veterans from vehicle sales tax when purchasing a vehicle. The sales tax in Washington is 6.5%-9.6%. The cost of living is 1.16 times more expensive than the national average.

#5: Oklahoma
Washington State has no personal income tax, hence active duty and retired pay are not taxed. Property tax is fully exempt with 100% disability rating. The state provides educational benefits to veterans. It does exempt veterans from vehicle sales tax when purchasing a vehicle. The sales tax in Oklahoma is 4.5%. The cost of living is below the national average.

#6: Arizona
Arizona has a 2.5% flat tax rate for personal income tax. However active duty and retired pay are not taxed. Property tax is fully exempt with 100% disability rating. The state provides educational benefits to veterans. It does not exempt veterans from vehicle sales tax when purchasing a vehicle. The sales tax in Arizona is 5.6%. The cost of living is 1.02 times more expensive than the national average.

#7: Arkansas
Arkansas has a 2-4.7% personal income tax rate. However, active duty and retired pay are not taxed. Property tax is fully exempt with 100% disability rating. The state provides educational benefits to veterans. It does exempt veterans from vehicle sales tax when purchasing a vehicle. The sales tax in Arkansas is 6.5% – 11.625%. The cost of living is 1.21 times less expensive than the national average.

#8: New York
New York State has a personal income tax of 4-10.9%, but active duty and retired pay are not taxed. Property tax is fully exempt with 100% disability rating. The state provides educational benefits to veterans. It does exempt veterans from vehicle sales tax when purchasing a vehicle. The sales tax in New York is 4%-8.875%. The cost of living is 1.57 times more expensive than the national average.

#9: Rhode Island
Rhode Island has a 3.75%-5.99% personal income tax. However, active duty and retired pay are not taxed. Property tax is fully exempt with 100% disability rating. The state provides educational benefits to veterans. It does not exempt veterans from vehicle sales tax when purchasing a vehicle. The sales tax in Rhode Island is 7%. The cost of living is 1.13 more expensive than the national average.

#10: New Mexico
New Mexico has 1.7%-5.9% personal income tax rate. However, active duty and retired pay are not taxed. Property tax is fully exempt with 100% disability rating. The state provides educational benefits to veterans. It does exempt veterans from vehicle sales tax when purchasing a vehicle. The sales tax in New Mexico is 4.875%-7.125%. The cost of living is 1.14 times less expensive than the national average.