If you serve, have served, or are married to someone who has, a Hawaii veteran property tax exemption can take the property tax bill on your home down to almost nothing. Hawaii is one of the most generous states for totally disabled veterans, but the benefit works a little differently here than on the mainland. This guide walks through the main rules in plain language, points you to the official sources, and shows you where to apply. PCS, which is short for Permanent Change of Station, is the military's term for an ordered move from one duty station to another, and many service members land in Hawaii on one. Tax rules change, so treat this as a starting map, not the final word.
The Hawaii Disabled Veteran Property Tax Exemption
The key thing to understand about Hawaii is that the state itself does not collect real property tax. Property tax is run by the four counties: the City and County of Honolulu, which covers Oahu and the major bases there; Hawaii County, which is the Big Island; Maui County; and Kauai County. Each county sets its own rules and forms, which is why two veterans on different islands can both be "exempt" and still get a slightly different bill.
All four counties offer the same core benefit. If you are a veteran who is totally disabled due to injuries received while on active duty with the U.S. Armed Forces, your home is exempt from all real property taxes except a small annual minimum tax. The VA, which is the U.S. Department of Veterans Affairs, is the federal agency that rates service-connected disabilities. The Hawaii Office of Veterans Services confirms this on its benefits and services page and notes the details vary by island, so your county office is the place to confirm your number.
Honolulu (Oahu)
Most service members in Hawaii are on Oahu, so start here. Under Honolulu's code, a home owned and occupied by a person who is totally disabled due to injuries received while on duty with the Armed Forces is exempt from all property taxes, other than special assessments and the minimum tax. The exemption can pass to an unmarried widow or widower who keeps living in the home. You can read the rule in Honolulu's totally disabled veterans section and on the City and County of Honolulu real property page.
What you still owe is the minimum tax. For the 2025 to 2026 tax year, Honolulu's minimum real property tax is $300, as the City confirms in its property tax reminder. So a qualifying totally disabled veteran on Oahu generally pays that $300 and little else on their main home. If you are headed to the island, our guides to the military bases in Hawaii and a PCS to Schofield Barracks can help you picture where to land.
The Other Three Counties
The Big Island, Maui, and Kauai each offer their own version of the exemption. The idea is the same everywhere: your home comes off the tax rolls except for a small minimum.
On the Big Island, Hawaii County's minimum real property tax is $200, as shown on the County of Hawaii tax rates page. Maui County grants a disabled veteran's exemption with a $150 minimum tax, and defines "severely disabled" as a veteran with a 70 percent or higher VA rating, per the Maui County real property tax FAQ. Kauai County exempts a veteran who is at least 80 percent disabled from injuries received on active duty, leaving only a $150 minimum tax, per the County of Kauai exemption and tax relief page. Because each county sets these figures and can change them year to year, confirm the current minimum with your county.
The County Home Exemption and How It Stacks
Every county also offers a general "home exemption" for owner-occupants, veteran or not. This is the local version of what many states call a homestead exemption. It does not erase your bill the way the disabled veteran exemption can, but it lowers the assessed value the county taxes.
The amounts differ by county. Honolulu's home exemption takes $120,000 off your assessed value, or $160,000 if you are 65 or older, as the Honolulu home exemption page explains. Maui's is $300,000 for owner-occupants, per the Maui County real property tax FAQ. Kauai's is $220,000, rising for older homeowners, per the County of Kauai exemption page.
For a totally disabled veteran, the disabled veteran exemption is the big one, since it can wipe out everything above the minimum tax. The home exemption matters most to military families without a qualifying disability rating. If you are weighing whether to buy, our guides on whether active-duty members should buy a home in Hawaii and buying a home after a PCS to Hawaii walk through the trade-offs.
Military Pay and Hawaii State Income Tax
Hawaii has a state income tax, so how your military pay is treated matters as much as the property tax break.
Military Retirement Pay
Hawaii does not tax military retirement pay. The state excludes military and other government pensions, so retired pay you report on your federal return is subtracted before Hawaii taxes you. You claim it on the line for pensions taxed federally but not taxed by Hawaii, described in the Hawaii resident income tax (Form N-11) instructions. For a career service member planning to retire in the islands, that is a real advantage.
Active-Duty Pay
Active-duty pay depends on your residency. If you are a Hawaii resident, your active-duty pay is generally taxable by Hawaii. There is no full exemption for resident active-duty pay, though the state does let members of the Reserve and the Hawaii National Guard exclude a set amount of their drill and duty pay each year. If you are not a Hawaii resident and are stationed here only on military orders, Hawaii does not tax your active-duty wages. The state lays this out in Tax Facts 97-2, Income Tax Information for Nonresident Military Servicemembers. Your home of record on your Leave and Earnings Statement decides this, so it is worth getting right.
VA Disability Compensation
VA disability compensation is not taxed. It is not part of your federal income, and because Hawaii starts from your federal income, the state does not tax it either. The same goes for most tax-free VA benefits.
