Hawaii is home to more than 114,000 veterans — a community shaped by the Pacific theater of World War II, the Korean War, and decades of active-duty presence at Joint Base Pearl Harbor-Hickam, Schofield Barracks, and Marine Corps Base Hawaii. In a state with one of the highest costs of living in the nation, Hawaii's veteran benefits — from property tax exemptions to free university tuition — provide meaningful financial relief. Here's the complete 2025 guide.
Hawaii occupies a singular place in American military history. The December 7, 1941 attack on Pearl Harbor drew the United States into World War II, and Hawaii has remained one of the most strategically important military locations in the Pacific ever since. Today, the state is home to major installations that continue to define its military identity:
Hawaii's 114,000+ veterans include a disproportionate number of WWII and Korean War veterans — many of whom served in the Pacific theater. The state's veteran community is also notably diverse, with significant Japanese American veteran representation (including many 442nd Regimental Combat Team veterans), Filipino American veterans, and veterans from across the Pacific island community.
Hawaii imposes a state income tax with rates ranging from 1.4% to 11% — one of the highest top rates in the nation. However, Hawaii provides a significant carve-out for the military community: military retirement pay is excluded from Hawaii state income tax.
This exemption means that a veteran receiving $24,000 per year in military retirement — roughly a 20-year E-7 retirement — saves approximately $2,200 to $2,600 annually in Hawaii state income taxes compared to if the income were fully taxable at Hawaii rates. For higher-ranking retirees with larger retirement checks, the annual savings are proportionally greater.
Key points about Hawaii's military retirement tax treatment:
In Hawaii's high cost-of-living environment, this tax exemption can meaningfully improve the financial viability of retirement on a fixed military pension. Veterans should confirm their specific situation with the Hawaii Department of Taxation (tax.hawaii.gov).
In Hawaii, every rating percentage point translates to more tax-free income in the country's most expensive state. Make sure you're rated as high as your conditions warrant.
Check My Rating →Hawaii's property tax system is administered at the county level across its four counties — Honolulu (Oahu), Maui, Hawaii (Big Island), and Kauai. Each county sets its own exemption amounts and application procedures, though all four provide meaningful relief to disabled veterans.
The City and County of Honolulu offers a $100,000 assessed value exemption for veterans who are totally disabled — generally those with a 100% permanent and total (P&T) service-connected disability rating from the VA. This exemption reduces the taxable assessed value of the veteran's primary residence by $100,000, producing meaningful annual tax savings in a market where residential property values are among the highest in the nation.
For example, on a home assessed at $700,000 with a $100,000 exemption, the taxable value drops to $600,000. At Honolulu's residential tax rate, this equates to hundreds of dollars in annual savings — compounding over time into significant lifetime relief.
Veterans with 100% permanent and total ratings can access substantial property tax relief across all four Hawaii counties. The specific exemption amounts differ by county:
| County | Exemption Type | Application Office | Deadline |
|---|---|---|---|
| Honolulu (Oahu) | $100,000 assessed value exemption for totally disabled veterans | Honolulu Real Property Assessment Division | September 30 |
| Maui County | Significant exemption for 100% P&T veterans; amounts set annually | Maui Real Property Assessment Division | September 30 |
| Hawaii County (Big Island) | Disability exemptions for qualified disabled veterans | Hawaii County Real Property Tax Division | September 30 |
| Kauai County | Disability-based exemptions for eligible veterans | Kauai Real Property Assessment Division | September 30 |
The application deadline across all Hawaii counties is generally September 30 for the following tax year. To apply, veterans typically need:
Contact your county's real property tax division directly to obtain current application forms and confirm the exact exemption amount for your tax year. The Hawaii Office of Veterans' Services (OVS) can also assist with locating the correct office.
Hawaii's education benefits for veterans are centered on the University of Hawaii system — a 10-campus network spanning Oahu, Maui, Hilo, West Hawaii, and community colleges on multiple islands. The system's veteran-friendly policies make it an accessible and affordable option for veterans using federal GI Bill benefits.
Certain honorably discharged veterans may qualify for free tuition at the University of Hawaii system under state-funded veteran education programs. Eligibility criteria, funding levels, and program parameters are managed through the Hawaii Office of Veterans' Services and the UH system's veterans services offices. Veterans should contact OVS and their campus veterans center for current eligibility requirements, as program availability can vary with legislative appropriations.
Veterans using the Post-9/11 GI Bill (Chapter 33) qualify for immediate in-state tuition rates at the University of Hawaii without waiting the standard residency period. This means GI Bill benefits cover the full in-state tuition cost, with no out-of-pocket tuition for many veterans. When combined with the GI Bill housing allowance, veterans attending UH full-time receive substantial financial support.
Members of the Hawaii Army National Guard and Hawaii Air National Guard may qualify for the Hawaii National Guard Scholarship, which provides tuition assistance at University of Hawaii and other public Hawaii institutions. The scholarship is designed to encourage Guard members to pursue higher education while continuing to serve, and can be stacked with other state and federal education benefits where permissible.
Contact the Hawaii National Guard's Education Services Officer or the Hawaii Adjutant General's office for current scholarship amounts, application procedures, and annual funding availability.
All major UH campuses have dedicated veterans services offices that assist with:
The Hawaii Office of Veterans' Services (OVS), operating under the Hawaii Department of Defense, is the state agency responsible for coordinating veteran benefits and services across the islands. OVS maintains Veterans Service Representatives (VSRs) statewide who provide free assistance with VA claims, appeals, and benefit applications.
OVS VSRs are accredited to represent veterans before the VA at no cost. They can assist with:
The Hawaii Veterans Center in Waimalu (Aiea, Oahu) provides outpatient mental health and wellness services to Hawaii veterans. This facility offers counseling, group therapy, substance use treatment, and peer support services in a veteran-focused environment outside the main VA medical center. Veterans experiencing mental health challenges — including PTSD, depression, and military sexual trauma — can access services here.
The National Memorial Cemetery of the Pacific, commonly known as Punchbowl, is located in a volcanic crater (Puowaina Crater) in Honolulu and is one of the most iconic national cemeteries in the United States. It serves as the final resting place for more than 53,000 veterans and their eligible dependents from World War II, the Korean War, the Vietnam War, and other conflicts.
Punchbowl is a federal national cemetery administered by the National Cemetery Administration. Eligible veterans receive free burial, a government-furnished headstone or marker, and a burial flag. Families of eligible veterans can contact the National Cemetery Scheduling Office at 1-800-535-1117 for interment arrangements. The cemetery is open to the public and serves as a major memorial site and tourist destination.
Hawaii OVS Veterans Service Representatives provide free VA claims help across all islands. Accredited to represent veterans before the VA at no cost.
Outpatient mental health services for veterans. Counseling, PTSD treatment, substance use support, and peer programs in a veteran-focused setting.
National Memorial Cemetery of the Pacific in Honolulu. Free burial for eligible veterans. One of the most iconic national cemeteries in the U.S.
Immediate in-state tuition rates for veterans at all UH campuses. Veteran services offices on all major campuses assist with GI Bill enrollment.
Hawaii law provides veterans with a meaningful advantage in state government hiring through the Hawaii Veterans Preference under Hawaii Revised Statutes § 78-1.
Veterans who served on active duty and were honorably discharged receive 5 preference points added to their civil service examination scores. Veterans with service-connected disabilities receive 10 preference points. These additions can make a significant difference in competitive state hiring, particularly for positions where civil service exam scores determine hiring order.
Surviving spouses of veterans who died in service or from service-connected causes may also qualify for preference points. Contact the Hawaii Department of Human Resources Development for current procedures and qualifying criteria.
Hawaii participates in the federal HIREVets program and maintains state-level veteran employment initiatives through the Hawaii Department of Labor and Industrial Relations. Services include job placement assistance, resume development, career counseling, and connections to employer partners who prioritize veteran hiring. Veterans are designated as priority service customers at Hawaii American Job Centers.
Hawaii consistently ranks as the most expensive state in the nation for cost of living. Housing costs in Honolulu are among the highest in the country, groceries and utilities carry significant premium over mainland prices, and transportation costs are elevated by the state's island geography. A median home in Honolulu regularly exceeds $800,000.
This economic reality makes Hawaii's veteran benefits — particularly the property tax exemption and military retirement tax exclusion — disproportionately valuable compared to states with lower costs of living:
Veterans considering Hawaii as a retirement destination should carefully model the interplay of VA compensation, military retirement (tax-free at state level), Social Security, and property tax savings against Hawaii's cost of living. For veterans with high VA ratings and military retirement, the combination can be financially viable — especially if VA healthcare covers most medical expenses through the VA Pacific Islands Healthcare System.
Hawaii's veteran community includes a substantial population of WWII and Korean War veterans — many of whom served in the Pacific theater or whose family members served. The state maintains special recognition and support programs reflecting this history:
The 442nd Regimental Combat Team — composed predominantly of Japanese American volunteers, many from Hawaii — is the most decorated unit in U.S. military history. Hawaii maintains deep institutional respect for this legacy, and surviving veterans and their families are recognized through state ceremonies and historical preservation programs. Organizations such as the 100th Infantry Battalion Veterans, Go For Broke National Education Center, and state historical societies serve this community.
Hawaii's proximity to the Asia-Pacific region means its veteran community includes veterans from Pacific Island nations — including veterans from the Compact of Free Association states (Federated States of Micronesia, Republic of the Marshall Islands, Palau) who served in the U.S. Armed Forces. These veterans may access some state programs; eligibility varies by specific benefit. OVS can provide guidance on accessing benefits for non-citizen veterans who served honorably.
Hawaii offers reduced hunting and fishing license fees for veterans with qualifying service-connected disabilities. Contact the Hawaii Division of Forestry and Wildlife for current rates.
The VA Pacific Islands Health Care System serves Hawaii veterans with facilities in Honolulu and community-based outpatient clinics on neighbor islands. Telehealth available for inter-island access.
Hawaii veterans receive VA healthcare through the VA Pacific Islands Health Care System, headquartered in Honolulu with community-based outpatient clinics on Maui, the Big Island, and Kauai. Veterans on neighbor islands can access many services through telehealth (VA Video Connect) without traveling to Oahu. Veterans with specialized care needs may need to travel to the Honolulu main facility or receive community care referrals for services not available locally.
Veterans living on Maui, the Big Island, Kauai, or Molokai face geographic access challenges somewhat analogous to rural Alaska — the nearest full VA medical center is on Oahu. The VA has expanded telehealth and community care options specifically to address neighbor island access. Veterans on neighbor islands should proactively enroll in the VA system, establish telehealth access, and request community care referrals for services that require in-person visits.
No. VA disability compensation is exempt from federal income tax and is also excluded from Hawaii state income tax. You will not owe Hawaii state income taxes on VA compensation at any rating level.
The $100,000 Honolulu County exemption is specifically for veterans who are "totally disabled" — which the county generally interprets as 100% permanent and total (P&T) service-connected disability. Veterans with lower ratings may qualify for a lesser exemption; contact the Honolulu Real Property Assessment Division for current criteria. Remember that the September 30 deadline is firm.
Yes. All University of Hawaii campuses are approved for GI Bill benefits (Post-9/11 and MGIB). Veterans qualify for immediate in-state tuition rates, maximizing the value of their GI Bill benefit. UH campus veterans services offices assist with enrollment certification and benefit processing.
The National Memorial Cemetery of the Pacific (Punchbowl) in Honolulu is a federal veterans cemetery providing free burial for eligible veterans and their dependents. Contact the National Cemetery Scheduling Office at 1-800-535-1117. Eligibility includes honorably discharged veterans who meet service requirements. The cemetery is managed by the VA National Cemetery Administration.
The Hawaii OVS is headquartered in Honolulu (459 Patterson Road, Fort Shafter Flats, Honolulu, HI 96819) and maintains representatives statewide. Visit ovs.hawaii.gov or call for current office hours and contact information. Services are free of charge for all Hawaii veterans.
Ready to make sure your VA rating reflects everything your service cost you? Use the claim.vet disability calculator or compare Hawaii to other states with our state benefits comparison tool. When you're ready to file or increase your claim, start your free claim review.
In Hawaii's high cost-of-living environment, every benefit dollar matters more. Make sure your VA rating is as high as your service-connected conditions warrant.
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