Best State for Veterans: Alaska
Table of Contents
- Why Veterans Choose Alaska
- Alaska by the Numbers
- Employment Outlook for Veterans
- Education Opportunities
- Veteran Benefits in Alaska
- Healthcare & VA Resources
- Best Cities in Alaska for Veterans
- Cost of Living
- Outdoor Recreation & Lifestyle
- Pros & Cons – Is Alaska Right for You?
- Frequently Asked Questions
| Category | Alaska |
|---|---|
| Overall Ranking | #23* |
| Best For | Outdoor enthusiasts, federal careers, military retirees seeking no state income tax |
| Veteran Population | ~63,000 |
| State Income Tax | None |
| Military Retirement Tax | Not taxed |
| Cost of Living | High |
| Major Military Installations | Joint Base Elmendorf-Richardson, Fort Wainwright, Eielson AFB, Coast Guard installations |
| VA Medical Centers | 1 major VA Medical Center plus community clinics |
| Military Friendly® Presence | Strong defense and federal employment |
*Ranking based on the GI Jobs Best States for Veterans methodology.
Why Veterans Choose Alaska
For many veterans, Alaska represents something few places in America still offer: space to breathe, abundant public land, and a lifestyle centered around independence and adventure. While its remote location isn’t for everyone, Alaska consistently attracts veterans who value the outdoors, want to continue working in defense or federal service, or simply want a slower pace of life after years of military service.
Military culture is deeply woven into Alaska’s identity. Joint Base Elmendorf-Richardson (JBER), Fort Wainwright, Eielson Air Force Base, and Coast Guard facilities employ thousands of active-duty service members, civilians, and veterans throughout the state. Defense spending remains a major economic driver, creating opportunities in aviation, logistics, engineering, cybersecurity, construction, healthcare, and government contracting.
Financially, Alaska has several attractive advantages. There is no state income tax, military retirement pay isn’t taxed, and many communities benefit from relatively low property taxes compared to other states. Eligible residents may also receive the state’s well-known Permanent Fund Dividend (PFD), which provides an annual payment funded by Alaska’s oil revenues.
The biggest challenge is cost of living. Groceries, utilities, fuel, and shipping costs can be significantly higher than the national average, especially outside major population centers. Winters are long and dark in much of the state, and rural communities often have limited healthcare and employment options.
For veterans who prioritize adventure, public lands, hunting, fishing, and careers tied to national defense, Alaska offers a unique quality of life that few states can match.
Using the Military Friendly® States Tool, this series explores what makes each state unique and why it may be the perfect place to begin your next mission. Here are the Military Friendly Employers® in Alaska.
Alaska by the Numbers
| Category | Alaska |
|---|---|
| Veteran Population | ~63,000 |
| Median Home Price | ~$395,000 |
| Median Rent | ~$1,400/month |
| Cost of Living Index | Above U.S. Average |
| Unemployment Rate | Moderate |
| State Income Tax | None |
| Military Retirement Tax | None |
| Average Property Tax | Below National Average |
| VA Medical Centers | 1 |
| Community VA Clinics | Multiple |
| Major Military Installations | 4+ |
Employment Outlook for Veterans
Defense remains one of Alaska’s strongest employment sectors.
Thousands of veterans continue their careers supporting the Department of Defense through civilian federal positions and contractors operating around Joint Base Elmendorf-Richardson, Fort Wainwright, and Eielson Air Force Base.
Strong industries include
- Aerospace
- Defense contracting
- Aviation
- Healthcare
- Construction
- Transportation
- Oil & gas
- Engineering
- Information technology
- Public safety
Veterans with experience in logistics, aviation maintenance, cybersecurity, heavy equipment, engineering, or leadership often find transferable opportunities throughout the state.
Major Veteran Employers
- Department of Defense
- Federal Aviation Administration
- Department of Homeland Security
- Alaska Native Corporations
- Oil and gas companies
- Healthcare systems
- State of Alaska
- Local municipalities
Federal employment is especially strong, making Alaska attractive for veterans interested in continuing government service. Let us help you get that resume ready to go: Why Your Military Resume Isn’t Getting Interviews (And How to Fix It)
Education Opportunities
Veterans using the GI Bill have several quality education options throughout Alaska.
Popular institutions include:
- University of Alaska Anchorage
- University of Alaska Fairbanks
- University of Alaska Southeast
- Alaska Pacific University
Many schools participate in Military Friendly® programs while offering online and hybrid learning that works well for working adults and military families.
Career-focused training is also available in:
- Welding
- Aviation maintenance
- Healthcare
- Diesel mechanics
- Maritime careers
- Construction trades
Because Alaska has workforce shortages in several skilled professions, graduates often benefit from strong employment prospects. Read more: Best Certifications for Veterans to Earn in Under 6 Months
Veteran Benefits in Alaska
State Income Taxes
Alaska has no state income tax, making it one of the most tax-friendly states for military retirees.
Military Retirement
Military retirement pay is not taxed.
Property Tax Benefits
Many municipalities offer exemptions or reductions for qualifying disabled veterans.
Benefits vary by borough and local government.
Hunting & Fishing
Alaska provides several hunting and fishing license benefits for eligible disabled veterans.
Considering the state’s outdoor opportunities, this is a significant perk.
Recreation
Veterans enjoy access to:
- National Parks
- State Parks
- Public lands
- Camping
- Hiking
- Hunting
- Fishing
- Boating
- Snowmobiling
Outdoor recreation is one of Alaska’s biggest draws.
Employment Services
The Alaska Department of Labor offers:
- Veteran employment specialists
- Career counseling
- Job placement assistance
- Apprenticeship programs
Healthcare & VA Resources
Veterans have access to the Alaska VA Healthcare System anchored by the VA Medical Center in Anchorage.
Additional services include:
- Community outpatient clinics
- Telehealth
- Mental health counseling
- Primary care
- Specialty care
- Women’s health
- Caregiver support
Because of Alaska’s geography, telehealth services play an especially important role in connecting veterans living in remote communities with VA providers.
Best Cities in Alaska for Veterans
Anchorage
Best for: Careers and healthcare
Pros
- Largest job market
- VA Medical Center
- Strong defense community
- Major airport
- Higher education options
Cons
- Higher housing costs
- Winter traffic
Fairbanks
Best for: Defense careers
Pros
- Fort Wainwright
- Eielson Air Force Base nearby
- Strong contractor presence
- Outdoor recreation
Cons
- Extremely cold winters
Wasilla
Best for: Families
Pros
- More affordable housing
- Easy access to Anchorage
- Growing community
- Outdoor lifestyle
Cons
- Longer commute
Juneau
Best for: Government careers
Pros
- State government jobs
- Beautiful scenery
- Strong community
Cons
- Limited road access
- Higher living costs
Kenai
Best for: Retirement
Pros
- Fishing
- Smaller community
- Outdoor recreation
Cons
- Fewer healthcare options
Cost of Living
| Expense | Alaska | U.S. Average |
|---|---|---|
| Housing | Higher | Average |
| Utilities | Higher | Average |
| Groceries | Higher | Average |
| Transportation | Higher | Average |
| Healthcare | Slightly Higher | Average |
Daily expenses in Alaska tend to be higher due to transportation and shipping costs. Veterans considering relocation should account for these increased expenses when evaluating salaries or retirement income. The lack of state income tax helps offset some of these costs, but budgeting remains essential.
Outdoor Recreation & Veteran Lifestyle
If you enjoy the outdoors, few states compare to Alaska.
Popular activities include:
- Denali National Park
- Glacier hiking
- Salmon fishing
- Big game hunting
- Kayaking
- Skiing
- Snowmobiling
- Wildlife photography
- Camping
- Northern Lights viewing
The state’s wide-open spaces and abundant public lands appeal to veterans seeking adventure and self-reliance.
Pros & Cons
Pros
✔ No state income tax
✔ Military retirement not taxed
✔ Strong federal employment
✔ Exceptional outdoor recreation
✔ Large military presence
✔ Tight-knit veteran community
Cons
✖ High cost of living
✖ Harsh winters
✖ Remote location
✖ Limited healthcare in rural areas
✖ Higher travel costs
Is Alaska Right for You?
Alaska is an excellent choice if you’re looking for a career connected to the military, enjoy outdoor recreation, or want to live in a state with no income tax and a strong veteran community. Veterans with experience in aviation, logistics, engineering, and government service will find especially strong career opportunities.
However, Alaska may not be the best fit if you prefer mild weather, lower day-to-day expenses, or easy access to large metropolitan amenities. The state’s remote geography and long winters require a level of adaptability that isn’t for everyone.
Frequently Asked Questions
Is Alaska a good state for veterans?
Yes. Alaska offers no state income tax, no tax on military retirement pay, a strong military presence, abundant federal employment opportunities, and excellent outdoor recreation.
Does Alaska tax military retirement?
No. Alaska does not have a state income tax, so military retirement benefits are not taxed.
What are the best cities in Alaska for veterans?
Anchorage, Fairbanks, Wasilla, Juneau, and Kenai each offer different advantages depending on whether you’re seeking employment, retirement, or family-friendly communities.
Does Alaska have good VA healthcare?
Yes. Veterans have access to the Alaska VA Healthcare System, including the Anchorage VA Medical Center, community outpatient clinics, and extensive telehealth services for rural areas.
Is Alaska affordable for military retirees?
While Alaska’s lack of state income tax is a major financial advantage, the overall cost of living—especially for housing, groceries, utilities, and transportation—is higher than the national average. Military retirees should carefully evaluate their budget before relocating.