Hawaii Veteran Benefits

Complete guide to state benefits for Hawaii veterans in 2026

Hawaii Tax Advantage

Hawaii fully exempts military retirement pay from state income tax! VA disability compensation is also tax-free under federal law.

Hawaii Veteran Benefits Summary: Hawaii offers full military retirement exemption, property tax exemptions for disabled veterans, the Hawaii State Veterans Home, and education benefits. Hawaii has approximately 110,000 veterans.

State Income Tax

Military retirement: Fully exempt

VA disability: Tax-free (federal law)

Property Tax Exemptions

  • Totally disabled: Full exemption
  • Disabled veteran: Partial exemptions
  • County-specific benefits

Education Benefits

  • University of Hawaii: Veteran support
  • In-state tuition: For all veterans

Employment Benefits

  • Veterans' Preference: 5-10 points
  • Disabled veteran: Additional preference

2026 BAH Rates for Hawaii Bases

InstallationE-5 w/Dep
Honolulu / Pearl Harbor$3,450
Kaneohe Bay$3,450