Where Veterans Earn More Money Than Civilians – 2023 Study

By Patrick Villanova | OCT 26, 2023

Despite making up only 7% of the adult population in the United States, veterans of the armed forces play an important role in the economy. In 2022, the veteran unemployment rate of 2.8% was significantly lower than the overall unemployment rate (3.4%). In fact, a Pew Research Center analysis of Census Bureau data from 1980 to 2017 found that veteran-led households “have higher incomes and are less likely to be in poverty” than non-veteran households.

Keeping this in mind, SmartAsset examined veteran incomes in 345 cities with at least 100,000 residents and compared them to the earnings of the broader civilian workforce.

Key Findings

• California and Texas cities make up nearly half of the top 25. Zooming out further, the two states also account for 16 cities ranked in the top 10% of the study. However, both states also have two cities each at the very bottom of the rankings: Sugar Land and Odessa in Texas, and San Francisco and Santa Clara in California. 
• Veterans earn an average of $100,000 in these cities. The Washington D.C. area is home to the No. 1 and 2 places for veteran income: Alexandria, Virgina ($121,809) and Arlington, Virginia ($117,692). The Woodlands, Texas, has the third-highest median veteran income ($109,109). 
• The median veteran income is less than $26,000 per year in these cities. Lansing, Michigan ($24,963); El Monte, California ($25,045); and Birmingham, Alabama ($25,790) rank lowest for median veteran income, which is at least 34% lower than the median income of the broader workforce in each city.
• Veterans fare worse in these major cities. In San Francisco, median income for veterans ($49,323) is nearly 30% lower than the median income of the typical civilian ($69,929). In Seattle, veterans typically earn 15% less than average civilians, while Denver has an income gap of 9%. 

10 Cities Where Veterans Make Most Relative to Civilians

1. College Station, TX
   The median income for veterans in College Station is 225% higher than the median income for civilians. Veterans here typically earn $71,940 per year, while an average person makes just $22,165. 
2. Hialeah, FL
   Veterans in Hialeah earn approximately 159% more than civilians in the city. While the median income for veterans in this city of 220,000 residents is $66,521, the typical individual only earns $25,648 per year. 
3. East Los Angeles, CA
   In East Los Angeles – a Census designated place (CDP) – veterans earn a median income of $65,799, significantly more than the median income of the broader civilian workforce ($25,802). As a result, the typical veteran in East Los Angeles makes nearly 155% more than the average person. 
4. Boulder, CO
   Veterans in Boulder have a median income of $84,644 per year – significantly more than the median income of civilians ($33,705). As a result, veterans here earn approximately 151% more than the typical civilian.
5. Paterson, NJ
   Veterans in Paterson – a city of nearly 157,000 people – typically earn $66,649, while all other civilians in the city have a median income of $27,495. This results in a percentage difference of approximately 142%.
6. Las Cruces, NM
   Veterans in Las Cruces typically earn about 123% more than the average civilian in the city. The median veteran income ($60,276) is more than $33,000 higher than the annual earnings of a typical person. 
7. Murrieta, CA
   In Murrieta, the median veteran income is $86,073, which is notably higher than the median income of civilians ($40,628). This results in a percentage difference of approximately 112%.
8. Tuscaloosa, AL
   Veterans in Tuscaloosa typically earn $53,410 per year, nearly $28,000 more than the average person in the city ($25,656). As a result, the median veteran income is 108% higher than the median income for civilians. 
9. Wichita Falls, TX
   The median income for veterans in Wichita Falls is almost 106% higher than the median income of the broader workforce in this city of nearly 103,000 people. Veterans in Wichita Falls typically earn $63,010 – or nearly $33,000 more than the typical civilian. 
10. Miami, FL
    Veterans in Miami earn approximately 103% more than the typical civilian in the city. While the median income for veterans in Miami is $65,536, the members of the broader workforce earn $33,247 less.

Data and Methodology

This study examines the median veteran income in 345 cities with at least 100,000 residents. Cities are ranked by the percentage difference between the median veteran income and the median civilian income. Data comes from the Census Bureau’s 1-year American Community Survey (ACS) for 2022. Veteran and civilian income both include full-time and part-time workers, as well as students. One limitation of the data may be that a veteran population will skew older than civilians.

Financial Tips for Veterans

• Pay attention to state income taxes. While nine states do not tax income, another 28 do not tax military retirement pay at all. Meanwhile, there are 13 states – California, Colorado, Delaware, Georgia, Idaho, Kentucky, Maryland, Montana, New Mexico, Oklahoma, Oregon, Vermont and Virginia – that tax military retirement income to some extent. 
• Understand VA mortgage options. If you’re looking to buy a home, a Veterans Affairs (VA) loan can help you do just that – even if you don’t have money for a down payment. But keep in mind that you’ll have to pay a VA funding fee, which helps ensure the program will be available for future veterans. 
• Work with a financial planner. A fiduciary advisor can help you put together a comprehensive plan to pursue and achieve your financial goals. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

Questions about our study? Contact us at press@smartasset.com

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