Updated January 2026
Hawaii Veteran Benefits 2026
Hawaii offers several benefits for veterans and military retirees. Here is a summary of the key tax and property benefits available in HI for 2026.
Hawaii Highlights
- Full military retirement pay tax exemption
- Full property tax exemption for 100% disabled
- Free state parks access
- Veterans preference in state employment
Income Tax Treatment
Hawaii has a state income tax.
Military Retirement Pay: Hawaii fully exempts military retirement pay, as it does other employer-funded pension income.
Active Duty Pay: Active duty pay is fully exempt from Hawaii state income tax.
VA Disability Compensation: VA disability compensation is tax-free at both the federal and state level in all 50 states. Hawaii does not tax VA disability payments.
Property Tax Exemption for Disabled Veterans in Hawaii
Type: Varies by city/county
Hawaii has no statewide veteran exemption; property tax is administered by the four counties, and in Honolulu and Hawaii County a totally service-disabled veteran's home is exempt from real property tax except for the county minimum tax (about $150-$300/year), while Maui and Kauai counties grant exemptions at lower rating thresholds.
| VA disability rating / category | What you get |
|---|---|
| Totally disabled (service-connected) - Honolulu (City & County) | Full exemption of real property tax on the primary residence, except the county minimum tax (currently $300/year).Must be totally disabled due to injuries sustained on active duty. File Form E-8-10.5 with physician's certificate of disability. Citation: Revised Ordinances of Honolulu Sec. 8-10.5. |
| Totally disabled (service-connected) - Hawaii County (Big Island) | Full exemption of real property tax on the primary residence, except the county minimum tax.Administered by Hawaii County Real Property Tax Division (hawaiipropertytax.com). Minimum tax applies. |
| 70%+ - Maui County (reported) | Exemption reported for veterans rated 70% or more (secondary-source figure, not confirmed on a primary Maui County page in this research).UNVERIFIED on primary source - confirm with Maui County Real Property Assessment Division. |
| 80%+ - Kauai County (reported) | Exemption of taxes on all real property up to a taxable value of about $50,000 for veterans rated 80% or more (secondary-source figure).UNVERIFIED on primary source - confirm with Kauai County. |
- Income limit: None (for the Honolulu/Hawaii County totally-disabled exemption)
- Age requirement: None
- Surviving spouse: Yes - an unremarried widow/widower of a totally disabled veteran who continues to own and occupy the home may claim the exemption (Honolulu ROH 8-10.5). Other counties vary.
- Counts being paid at 100% via unemployability (TDIU)? Varies / not explicitly addressed — confirm with the assessor or state VA
Source: Revised Ordinances of Honolulu Sec. 8-10.5 (Honolulu); county ordinances in Hawaii, Maui, and Kauai counties (no statewide statute) and a second official source. Verified June 2026 against primary sources.
To apply, contact your county assessor's office or the Hawaii Department of Veterans Affairs. You will typically need your VA disability rating letter (and often your DD‑214) and proof that the home is your primary residence.
Real estate vs. personal property: this benefit applies to real-estate (home/homestead) property tax. Personal-property taxes — such as the annual tax some states levy on vehicles — are separate and generally still apply, even at a 100% rating, unless your state specifically exempts them.
VA Healthcare in Hawaii
Hawaii has approximately 2 VA medical centers along with community-based outpatient clinics (CBOCs) throughout the state. Veterans enrolled in VA healthcare can receive care at any VA facility nationwide.
To find the nearest VA facility, visit VA.gov Facility Locator.