Hawaii Veteran Tax Exemptions 2026

Hawaii exempts your VA disability compensation from state income tax, which matters in a state with a higher-than-average cost of living. Veterans who reach the top rating also qualify for a full property tax exemption on their home. Together, these two breaks can make a real difference in your monthly budget. Keep reading to see the requirements and how to get your exemptions on the books.

Does Hawaii tax VA disability income?

No. Hawaii does not tax VA disability compensation. The state treats it the same way the federal government does, which means it is left off your taxable income entirely. Whether you are rated 10 percent or 100 percent, your VA disability pay is not taxed by Hawaii.

Hawaii property tax exemption for disabled veterans

Full exemption at 100%. Full property tax exemption for 100% rated vets.

In a high-cost state like Hawaii, a full property tax exemption at the top rating carries real weight. It is one of the most straightforward ways the state reduces the financial burden for its most severely disabled veterans.

What rating do you need in Hawaii?

The size of your break depends on your combined VA rating. In Hawaii, the full break is reserved for veterans at the top rating, usually 100 percent or 100 percent Permanent and Total. Lower ratings may still qualify for a smaller break, so it is worth checking with your county even if you are not yet at 100 percent. Not sure what your combined rating works out to? Run it through our VA disability calculator first, and if you are aiming for the top tier, check whether you qualify for Permanent and Total status.

How to claim your Hawaii exemption

1. Confirm your current combined rating and whether it is Permanent and Total. Your VA award letter shows both.
2. Gather your DD-214 and your VA disability award letter. Most Hawaii offices ask for both.
3. Contact your county tax assessor for the property tax exemption, and the your state tax agency or Department of Veterans Affairs for the income side.
4. File before your county deadline. Many counties require you to apply once, then renew only if your rating changes.

Always confirm the current figures and deadlines with your county assessor and the Hawaii Department of Veterans Affairs before you rely on them. Rules and dollar amounts change year to year.