Veteran Benefits for Hawaii

• Hawaii National Guard and U.S. Armed Forces Reserve Drill Pay Exempt from Hawaii Income Tax:  Income received by members of reserve components of the U.S. Armed Forces, equivalent to 48 drills (representing 12 weekends) and 15 days of annual training duty, and holding a pay grade of E-5 or below after serving for eight years, is exempt from Hawaii state taxes
• Hawaii Income Taxes on Military Pay: Military pay received by a resident Service member that is included in their federal adjusted gross income is taxable in Hawaii.
• Hawaii Income Taxes on Military Retired Pay:  Income received as military retired pay is exempt from Hawaii state income taxes. Thrift Savings Plan (TSP) doesn’t automatically withhold state or local income taxes, but it is reported annually through IRS Form 1099-R. It’s important to note that all TSP distributions may be subject to state taxes, and early distributions could incur higher tax liabilities.
• Hawaii State Taxes on U.S. Department of Veterans Affairs Military Disability Retirement Pay:  Military Disability Retirement Pay, received as a pension, annuity, or similar allowance due to personal injury or illness stemming from active service in the U.S. Armed Forces, is generally not considered taxable income. Some of the payments classified as disability benefits include:
  • Disability compensation and pension payments for disabilities paid to Veterans or their Families
  • Grants for homes designed for wheelchair living
  • Grants for motor vehicles for Veterans who lost their sight or the use of limbs, or
  • Benefits under a dependent-care assistance program.
• Hawaii State Taxes on U.S. Department of Veterans Affairs Disability Dependency and Indemnity Compensation (DIC):  DIC (Dependency and Indemnity Compensation) is a tax-free financial benefit provided to qualifying survivors of military Service members who lost their lives in the line of duty or eligible survivors of Veterans whose death was a result of a service-connected injury or disease.
• Hawaii State Taxes on Military Survivor Benefit Plan (SBP) / Reserve Component Survivor Benefit Plan (RCSBP) / Retired Serviceman’s Family Protection Plan (RSFPP):  SBP, RCSBP and RSFPP are not taxed in Hawaii.
• Hawaii Real Property Tax Exemptions:  Veterans with a full service-connected disability rating from the VA are entitled to a property tax exemption on their primary residence and the associated land. However, it’s important to note that depending on the county of residence, there may be additional assessments or conditions that apply. Veterans will be required to provide proof of receiving an honorable discharge and certification from the VA of their disability. The unremarried surviving spouse of an eligible Veteran can also claim this exemption. Property taxes are assessed by each of the four counties in Hawaii. Each county has their own special assessment rate and forms for their exemption.
• Hawaii Passenger Vehicle Tax Exemption for Certain Cars Furnished to Disabled Veterans:  Specially adapted vehicles provided to service-connected disabled Veterans by the VA are exempt from all Hawaii taxes.

Sales Tax:

• Statewide: 4.0%
• Counties: can levy an additional sales tax of no more than 0.5%
• Current average sales tax (with local taxes included): 4.44%

Recreation

Hunting Licenses:  Hawaii Hunting Licenses at Resident Price for Nonresident Military: Nonresident Active duty Service members and their dependents stationed in Hawaii can purchase resident hunting licenses.

Education Programs

Hawaii Kupono Diploma Program for Wartime Veterans:  The Hawaii Department of Education administers the Kupono Diploma Program, which bestows honorary high school diplomas upon World War II (WWII), Korean, and Vietnam War-era Veterans who left school before completing their education to serve in the U.S. Armed Forces.

• Who is eligible for the Hawaii Kupono Diploma Program for Wartime Veterans? Veterans must meet the following requirements to be eligible:
  • Was enrolled in a Hawaii public high school prior to enlisting in the U.S. Armed Forces
  • Received an honorable discharge
  • Served during WWII, the Korean War, or the Vietnam War

Veterans who received a General Education Diploma (GED) are also eligible for an honorary diploma. Diplomas may be awarded posthumously to Veterans who are deceased. There is no cost for this program.

Hawaii Residency for Tuition Purposes for Nonresident Veterans, Service Members, and Dependents:   Nonresident Veterans and service members stationed in Hawaii, as well as their dependents, can avail themselves of resident tuition rates when attending colleges in Hawaii. Additionally, students using VA educational benefits and those awarded the Gunnery Sergeant John David Fry Scholarship are also eligible for resident tuition rates.

Hawaii National Guard State Tuition Assistance Program (STAP):  The STAP (State Tuition Assistance Program) provides tuition reimbursement for qualifying Hawaii National Guard Service members who have successfully finished Basic Combat Training and Advanced Individual Training. This assistance covers the full tuition at a community college and 50% of the tuition at a Hawaii state university.

Who is eligible for STAP? To be eligible for STAP Hawaii National Guard Service members must meet the following requirements:

• Hawaii resident
• Must be an undergraduate working towards a degree and enrolled in classes that lead toward their degree completion
• Currently serving in the Hawaii National Guard and demonstrating satisfactory performance
• Enlisted, warrant officer or commissioned officer 0-3 and below
• Maintain satisfactory academic performance to continue to receive STAP

STAP can also be used in conjunction with your G.I. Bill and Federal Tuition Assistance benefits.

Hawaii Interstate Compact on Educational Opportunity for Military Children (MIC3):  The purpose of this compact is to remove barriers to educational success imposed on children of military families because of frequent moves and deployment of their parents by:

• Facilitating the prompt enrollment of children of military families and ensuring that they are not placed at a disadvantage due to difficulty in the transfer of educational records from the previous school district or variations in entrance or age requirements
• Facilitating the student placement process through which children of military families are not disadvantaged by variations in attendance requirements, scheduling, sequencing, grading, course content, or assessment. Facilitating the qualification and eligibility for enrollment, educational programs, and participation in extracurricular academic, athletic, and social activities
• Facilitating the on-time graduation of children of military families
• Providing for the enforcement of administrative rules implementing the provisions of this compact
• Providing for the uniform collection and sharing of information between and among member states, schools, and military families under this compact
• Promoting coordination between this compact and other compacts affecting military children
• Promoting flexibility and cooperation between the educational system, parents, and the student in order to achieve educational success for the student

Hawaii Interstate Compact on Educational Opportunity for Military Children: It is the purpose of this compact to remove barriers to educational success imposed on children of military families because of frequent moves and deployment of their parents by:

• Facilitating the timely enrollment of children of military families and ensuring that they are not placed at a disadvantage due to difficulty in the transfer of educational records from the previous school district or variations in entrance or age requirements
•  Facilitating the student placement process through which children of military families are not disadvantaged by variations in attendance requirements, scheduling, sequencing, grading, course content or assessment
• Facilitating the qualification and eligibility for enrollment, educational programs, and participation in extracurricular academic, athletic and social activities
• Facilitating the on-time graduation of children of military families
• Providing for the promulgation and enforcement of administrative rules implementing the provisions of this compact
• Providing for the uniform collection and sharing of information between and among member states, schools and military families under this compact
• Promoting coordination between this compact and other compacts affecting military children
• Promoting flexibility and cooperation between the educational system, parents and the student in order to achieve educational success for the student

Housing: The following are the sites for Veterans Homes

Hawaii State Veterans Home at Yukio Okutsu in Hilo

Eligibility for admission:

• Require skilled or long-term nursing home care
• Must be at least 55 years of age (admission under age 55 may be considered on a case by case basis)
• Received an honorable discharge
• Resident of Hawaii prior to entry into the U.S. Armed Forces or for one year prior to application
• Must be able to pay the resident’s portion of the cost of care
• On a space available basis Spouses, Surviving Spouses, and Gold Star parents may be admitted

Admission priorities

• First – Severity of disability
• Second – Capacity to earn a living
• Third – Length of military service
• Fourth – Amount of combat experience
• Fifth – Circumstances of immediate family

Employment and Job Training: Veteran’s Preference

Hawaii State Employee Leave for Military Duty:  State and city employees are entitled to 15 days of paid military leave for military duty per calendar year. They may also use an additional 15 days from the subsequent year if necessary.

Hawaii State Employee Military Caregiver Leave: Hawaii State employees can request a maximum of 26 weeks of unpaid leave within a single 12-month period to assist their military relative (Spouse, Child, parent, or next of kin) who has incurred a severe illness or injury during active duty service.

Uniformed Services Employment and Reemployment Rights Act (USERRA): USERRA (Uniformed Services Employment and Reemployment Rights Act) safeguards the job rights and benefits of Veterans and members of reserve components in civilian employment. USERRA enhances the protection of Service member rights and benefits through legal clarity, strengthened enforcement mechanisms, and the inclusion of Federal Government employees among those eligible to receive Department of Labor assistance in handling claims.

Absence from Work for Military Duty:  USERRA sets the maximum duration for which an individual can be absent from work for military duty while retaining reemployment rights at five years. Certain exceptions to this five-year limit exist, such as initial enlistments exceeding five years, periodic National Guard and U.S. Armed Forces Reserve training duty, and involuntary active duty extensions and recalls, especially during periods of national emergency. USERRA emphasizes that reemployment protection is not contingent on the timing, frequency, duration, or nature of an individual’s service, provided that the fundamental eligibility criteria are satisfied.

Disability Accommodation:  USERRA offers safeguards for disabled Veterans, mandating that employers make reasonable attempts to accommodate their disabilities. Service members recuperating from injuries sustained during service or training have a window of up to two years from the date of completing their service to either return to their previous jobs or seek re-employment.

Return to Work without Loss of Seniority:  USERRA ensures that returning Service members are reinstated in the positions they would have attained had they not been absent due to military service, with the same seniority, status, pay, and additional rights and benefits determined by seniority. USERRA also necessitates reasonable efforts, such as training or retraining, to assist returning Service members in refreshing or enhancing their skills to qualify for reemployment. While on military service, USERRA categorizes them as being on a furlough or leave of absence, entitling them to the non-seniority rights typically granted to individuals on non-military leaves of absence.

Extension of Health and Pension Plans: USERRA ensures that health and pension plan coverage is maintained for Service members. Those engaged in military duty lasting more than 30 days have the option to extend their employer-sponsored health care for a period of up to 24 months. However, they may be obligated to cover up to 102% of the full premium. In cases of military service lasting less than 31 days, health care coverage is maintained as if the Service member had continued their employment. Additionally, USERRA explicitly outlines that all pension plans are safeguarded.

Who is eligible for USERRA Benefits?  Veterans, U.S. Armed Forces Reserve members, or National Guard Service members who depart from a position for training or active military service are eligible for protection under USERRA. The Department of Labor, specifically through the Veterans’ Employment and Training Service (VETS), provides assistance to all individuals with claims under USERRA, encompassing Federal and Postal Service employees.

Federal Employment Veteran’s Hiring Preferences:  Federal law mandates that Veterans, especially those with disabilities or those who served during specific time periods or in military campaigns, are granted preference over non-veterans when it comes to Federal civil service hiring and retention during workforce reductions. In various scoring processes for examinations and interviews, Veterans may be eligible for an additional 5 or 10 points.

5-point Hiring Preference: Five points are added to the examination score or rating of a Veteran who served:

• During a war, or
• During the period April 28, 1952, through July 1, 1955, or
• For more than 180 consecutive days, other than for training, any part of which occurred after January 31, 1955, and before October 15, 1976, or
• During the Gulf War from August 2, 1990, through January 2, 1992, or
• For more than 180 consecutive days, other than for training, any part of which occurred during the period beginning September 11, 2001, and ending on August 31, 2010, the last day of Operation Iraqi Freedom, or
• In a campaign or expedition for which a campaign medal has been authorized. Any Armed Forces Expeditionary medal or campaign badge, including El Salvador, Lebanon, Grenada, Panama, Southwest Asia, Somalia, and Haiti, qualifies for preference

10-point  Compensable Disability (CP) Preference:  Ten points are added to the examination score or rating of a Veteran who served at any time and who has a compensable service-connected disability rating of at least 10% but less than 30%.

10-Point  30% Compensable Disability Preference (CPS): Ten points are added to the passing examination score or rating of a Veteran who served at any time and who has a compensable service-connected disability rating of 30% or more.

10-Point  Disability Preference (XP): Ten points are added to the passing examination score or rating of:

• A veteran who served at any time and has a present service-connected disability or is receiving compensation, disability retirement benefits, or pension from the military or the VA but does not qualify as a CP or CPS, or
• Veteran who received a Purple Heart

10-Point Derived Preference (XP): Ten points are added to the passing examination score or rating of Spouses, Surviving Spouses, or mothers of Veterans. Both a mother and a Spouse (including a Surviving Spouse) may be entitled to preference based on the same Veteran’s service if they both meet the requirements. However, neither may receive preference if the Veteran is living and is qualified for Federal employment.

Ten points are added to the passing examination score or rating of the Spouse of a disabled Veteran who is disqualified for a federal position along the general lines of their usual occupation because of a service-connected disability. Such a disqualification may be presumed when the Veteran is unemployed and:

• Is rated by appropriate military or VA authorities to be 100% disabled and/or unemployable, or
• Has retired, been separated, or resigned from a civil service position because of a disability that is service-connected in origin, or
• Has attempted to obtain a civil service position or other position along the lines of their usual occupation and has failed to qualify because of a service-connected disability

Preference may be allowed in other circumstances but anything less than the above warrants a more careful analysis.

A campaign medal holder or Gulf War Veteran who originally enlisted after September 7, 1980, (or began active duty on or after October 14, 1982, and has not previously completed 24 months of continuous active duty) must have served continuously for 24 months or the full period called or ordered to active duty. The 24-month service requirement does not apply to 10-point preference eligible Veterans separated for disability incurred or aggravated in the line of duty, or to Veterans separated for hardship or other reasons under Title 10 U.S.C. 1171 or 1173.

Hawaii State Veterans’ Preference for Public Employment: Hawaii offers Veterans’ hiring preference when hiring for competitive positions in public employment for eligible Veterans and their Spouses.

Who is eligible for Hawaii State Veterans Preference for Public Employment?

5 points: Veterans’ preference is awarded to honorably discharged Veterans who served on active duty in the U.S. Armed Forces who meet one of the following service requirements:

• Served from December 7, 1941, through July 1, 1955, or
• Served for more than 180 consecutive days from January 31, 1955, through October 14, 1976 (does not include active duty for training), or
• In a campaign or expedition for which a campaign badge or service medal was authorized

10 points: Veterans’ preference is awarded to:

• Honorably discharged Veterans who have a service-connected disability or were awarded the Purple Heart
• Spouse of an honorably discharged Veteran who has a service-connected disability that prevents them from working in state employment or their usual occupation
• Unmarried Surviving Spouse of a Service member who died while serving on active duty
• Unmarried Surviving Spouse of an honorably discharged Veteran who served during the time periods listed above

Veterans must submit their DD214 to verify the character of discharge and period of service, disabled Veterans must submit a copy of their VA disability award letter as proof of their service-connected disability (dated within the past 12 months). Spouses or Surviving Spouses must also provide proof of marriage, and the Veteran’s death (if applicable).

Burials and Memorials

The National Cemetery Administration (NCA) pays tribute to eligible Veterans and their family members by providing a final resting place and a lasting memorial to commemorate the Veteran’s dedicated service to the nation.

The burial benefits encompass a gravesite in any of our open cemeteries with available space, the opening and closing of the grave, perpetual care, a government-furnished headstone or marker, a burial flag, and a Presidential Memorial Certificate, all at no cost to the family. Some Veterans may also meet the criteria for a burial allowance. Cremated remains are interred or inurned in national cemeteries with the same honors and respect as casketed remains.

Burial benefits extend to eligible spouses and dependents, including burial alongside the Veteran and perpetual care of the interment site. The name and relevant dates of birth and death of the spouse or dependent are inscribed on the Veteran’s headstone at no expense to the family. Importantly, spouses and qualified dependents are eligible for burial even if they pass away before the Veteran and are not required to be interred in the same national cemetery as the Veteran.

National Cemeteries include:

Honolulu: National Memorial Cemetery of the Pacific

Hawaii VA Benefit Resources

Hawaii provides Veterans with a Regional Benefits Office and a VA Medical Center.

Hawaii VA Regional Benefits Office

• Honolulu: Honolulu Regional Office

Hawaii VA Medical Centers

• Honolulu: VA Pacific Islands Health Care System

Important information for Hawaii Veteran Benefits:

For Veterans applying for VA benefits for the first time, you must submit a copy of your DD 214 (discharge paperwork). This will provide your discharge status, along with your full name, social security number, branch of service, and dates for which you served. Honorable and general discharges qualify a Veteran for most VA benefits.

You should always keep your paperwork, along with your medical records, in a safe place where you and your family can have access to them. It is imperative to have it in a location where it cannot be destroyed or tampered with, which includes a safe.
Your eligibility for most VA benefits is based upon discharge from active military service under other than dishonorable conditions.

Active service means full-time service as a member of the Army, Navy, Air Force, Marine Corps, or Coast Guard, or as a commissioned officer of the Public Health Service, the Environmental Services Administration, or the National Oceanic and Atmospheric Administration.

Any Veteran discharged from the military under the conditions of “Dishonorable” due to bad conduct discharges issued by general courts-martial may bar VA benefits. Veterans in prison and parolees may be eligible for certain VA benefits. VA regional offices can clarify the eligibility of prisoners, parolees, and individuals with multiple discharges issued under differing conditions.

*This information is accurate as of October 2023

Hawaii Veteran Benefits

If you are a disabled Veteran in Hawaii and are VA rated 90% or less, you may be eligible for additional benefits. Contact Veterans Guardian for a free consultation with no obligation. Let us review your claim to determine whether you qualify for additional benefits.