← Previous State | Full Rankings | Next State →
Best States for Veterans: Arizona
Part of GI Jobs 50 States of Opportunity for Veterans series.
Table of Contents
- Snapshot
- Why Veterans Choose Arizona
- Arizona by the Numbers
- Employment Outlook for Veterans
- Education Opportunities
- Veteran Benefits in Arizona
- Healthcare & VA Resources
- Best Cities for Veterans
- Cost of Living
- Outdoor Recreation & Veteran Lifestyle
- Pros & Cons
- Is Arizona Right for You?
- Frequently Asked Questions
Snapshot
| Category | Arizona |
|---|---|
| Overall Ranking | #8* |
| Best For | Defense careers, retirees, sunshine, aerospace |
| Veteran Population | ~470,000 |
| State Income Tax | Yes (military retirement income exempt) |
| Military Retirement Tax | Fully exempt |
| Cost of Living | Moderate |
| Major Military Installations | Luke AFB, Davis-Monthan AFB, Fort Huachuca, MCAS Yuma |
| VA Medical Centers | 3 major VA Medical Centers plus outpatient clinics |
| Military Friendly® Presence | Excellent |
*Ranking based on the GIJobs Best States for Veterans methodology.
Why Veterans Choose Arizona
Arizona consistently ranks among the best states for veterans thanks to its combination of warm weather, a thriving defense industry, generous military retirement tax policies, and a large veteran community. Whether you’re leaving active duty, retiring after a military career, or simply looking for a fresh start, Arizona offers opportunities that appeal to veterans at every stage of life.
Military service remains deeply rooted in Arizona’s economy. Installations like Luke Air Force Base, Davis-Monthan Air Force Base, Fort Huachuca, and Marine Corps Air Station Yuma support thousands of military and civilian jobs while fueling one of the nation’s strongest aerospace and defense sectors. Veterans with backgrounds in aviation, intelligence, cybersecurity, logistics, engineering, and maintenance often find their military skills translate directly into civilian careers.
Beyond employment, Arizona has become a favorite retirement destination. The state fully exempts military retirement pay from state income taxes, offers property tax relief for many disabled veterans, and provides easy access to world-class outdoor recreation. From the red rocks of Sedona to the Grand Canyon and the Sonoran Desert, Arizona offers year-round opportunities to stay active.
Housing costs have increased in recent years, particularly around Phoenix and Scottsdale, but many communities remain more affordable than comparable metro areas in California or Colorado. Combined with a strong economy and abundant sunshine, Arizona continues to attract veterans looking for both career growth and quality of life.
Arizona by the Numbers
| Category | Arizona |
|---|---|
| Veteran Population | ~470,000 |
| Median Home Price | ~$435,000 |
| Median Rent | ~$1,650/month |
| Cost of Living Index | Slightly Above National Average |
| Unemployment Rate | Around National Average |
| State Income Tax | Yes |
| Military Retirement Tax | Exempt |
| Property Tax | Below National Average |
| VA Medical Centers | 3 |
| Community VA Clinics | 15+ |
| Major Military Installations | 4 |
Employment Outlook for Veterans
Arizona has one of the fastest-growing economies in the Southwest and remains a top destination for veterans seeking civilian careers. The state’s defense, aerospace, technology, healthcare, and manufacturing sectors continue to expand, creating strong demand for experienced professionals with military backgrounds.
Top industries include
- Aerospace & Defense
- Cybersecurity
- Healthcare
- Manufacturing
- Logistics
- Technology
- Government
- Public Safety
- Construction
Veterans transitioning into civilian employment will find opportunities with defense contractors, federal agencies, semiconductor manufacturers, and healthcare systems throughout the state.
Major Veteran Employers
- Raytheon
- Honeywell Aerospace
- Northrop Grumman
- Boeing
- Intel
- Banner Health
- Department of Veterans Affairs
- State of Arizona
Phoenix and Tucson consistently rank among the nation’s fastest-growing metro areas, providing veterans with access to diverse career paths across both public and private sectors.
Education Opportunities
Arizona offers veterans a wide variety of educational options, from nationally recognized universities to trade schools and workforce development programs.
Popular Military Friendly® institutions include:
- Arizona State University
- University of Arizona
- Embry-Riddle Aeronautical University (Prescott Campus)
- Northern Arizona University
Veterans can also pursue certifications and skilled trades in:
- Aviation maintenance
- HVAC
- Welding
- Cybersecurity
- Nursing
- Commercial driving
Arizona’s growing technology and manufacturing sectors create strong demand for graduates with technical skills, making education benefits especially valuable for transitioning service members.
Veteran Benefits in Arizona
State Income Taxes
Arizona taxes most personal income but fully exempts military retirement pay from state income taxes.
Military Retirement
Military retired pay is exempt from Arizona state taxation.
Property Tax Benefits
Qualified disabled veterans may receive property tax exemptions based on disability status and residency requirements.
Hunting & Fishing
Arizona offers discounted hunting and fishing licenses for eligible disabled veterans.
State Parks & Recreation
Veterans can enjoy access to:
- Grand Canyon National Park
- Saguaro National Park
- Petrified Forest National Park
- Numerous state parks
- Public lands managed by the Bureau of Land Management
Employment Services
Arizona provides veteran employment assistance through workforce centers, apprenticeship programs, and state veteran employment representatives who specialize in helping former service members transition into civilian careers.
Healthcare & VA Resources
Arizona veterans have access to an extensive VA healthcare network anchored by medical centers in Phoenix, Tucson, and Prescott.
Services include:
- Primary care
- Specialty care
- Mental health services
- Women’s health
- Telehealth
- Caregiver support
- Community outpatient clinics throughout the state
Arizona’s large veteran population has helped drive continued investment in VA healthcare infrastructure and specialty services.
Best Cities for Veterans
Phoenix
Best for: Career opportunities
Pros
- Largest job market
- Major VA facilities
- Strong defense industry
- Diverse economy
Cons
- Heavy traffic
- Rising housing costs
Tucson
Best for: Aerospace careers
Pros
- Davis-Monthan Air Force Base
- Raytheon presence
- Lower cost of living than Phoenix
- University of Arizona
Cons
- Hot summers
Prescott
Best for: Retirement
Pros
- Cooler climate
- Excellent VA Medical Center
- Historic downtown
- Strong veteran community
Cons
- Smaller job market
Mesa
Best for: Families
Pros
- Affordable suburbs
- Good schools
- Healthcare access
Cons
- Rapid growth
Sierra Vista
Best for: Intelligence & military careers
Pros
- Fort Huachuca
- Government jobs
- Affordable housing
Cons
- Limited entertainment
Cost of Living
| Expense | Arizona | U.S. Average |
|---|---|---|
| Housing | Slightly Higher | Average |
| Utilities | Average | Average |
| Groceries | Slightly Higher | Average |
| Transportation | Average | Average |
| Healthcare | Average | Average |
Although housing prices have risen in the Phoenix metropolitan area, many parts of Arizona remain relatively affordable compared with neighboring western states. Combined with the state’s military retirement tax exemption and strong job market, Arizona continues to provide good long-term value for veterans.
Outdoor Recreation & Veteran Lifestyle
Arizona is one of the country’s premier outdoor destinations.
Veterans enjoy easy access to:
- Grand Canyon National Park
- Hiking in Sedona
- Off-roading
- Camping
- Fishing
- Golf
- Mountain biking
- Desert recreation
- National forests
- Lake Powell
With over 300 days of sunshine each year, Arizona makes it easy to stay active year-round.
Pros & Cons
Pros
✔ Military retirement pay exempt from state taxes
✔ Excellent defense and aerospace careers
✔ Large veteran community
✔ Outstanding outdoor recreation
✔ Strong healthcare network
✔ Warm climate
Cons
✖ Extreme summer heat
✖ Rising housing prices
✖ Water supply concerns in some areas
✖ Traffic in Phoenix metro area
Is Arizona Right for You?
Arizona is an outstanding choice for veterans seeking a balance of career opportunities, retirement benefits, and outdoor living. The state’s robust defense industry, Military Friendly® employers, and tax advantages make it especially attractive for former service members with backgrounds in aviation, cybersecurity, logistics, healthcare, and engineering.
If you’re looking for four distinct seasons or a lower-profile housing market, Arizona may not be the perfect fit. But for veterans who value sunshine, career growth, and a strong military community, Arizona consistently earns its place among the nation’s best states for veterans.
Frequently Asked Questions
Is Arizona a good state for veterans?
Yes. Arizona offers strong veteran employment opportunities, tax-friendly military retirement policies, excellent VA healthcare, and one of the nation’s largest veteran communities.
Does Arizona tax military retirement?
No. Arizona fully exempts military retirement pay from state income taxes.
What are the best cities in Arizona for veterans?
Phoenix, Tucson, Prescott, Mesa, and Sierra Vista each offer unique advantages depending on whether you’re looking for career opportunities, retirement, or family life.
Does Arizona have good VA healthcare?
Yes. Arizona is home to major VA medical centers in Phoenix, Tucson, and Prescott, along with numerous outpatient clinics throughout the state.
Is Arizona affordable for veterans?
Arizona’s cost of living is moderate. While housing prices have increased in some metro areas, the state’s strong job market, military retirement tax exemption, and relatively low property taxes continue to make it an attractive destination for many veterans.
Looking for the complete rankings? Visit our Best States for Veterans guide.
