Owning a home in Hawaii comes with its share of responsibilities, and property taxes are one of them. The good news is that Hawaii offers a Homeowners’ Exemption that can help reduce the amount you owe each year. On top of that, if you are a veteran with a 100% disability rating, you may qualify for a much larger exemption. Here’s what you need to know.
Homeowners’ Property Tax Exemption
The Homeowners’ Exemption is available to anyone who both owns and occupies their home as their principal residence.
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How it works: The first $120,000 of your home’s assessed value is exempt from property tax.
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Example: If your home is assessed at $800,000, with the exemption you’ll only be taxed on $680,000.
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Who qualifies: You must own and occupy the property as your primary residence. Rental properties or second homes do not qualify.
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How to apply: You’ll need to file an application with your county’s Real Property Assessment Division:
It’s important to file your application by September 30th for the exemption to take effect on July 1st of the following tax year.
Additional Exemption for Disabled Veterans
Honolulu County recognizes the sacrifices of veterans and offers a special property tax exemption for those with a service-connected disability.
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100% Disability Rating: Veterans with a 100% service-connected disability rating are fully exempt from property taxes on their primary residence. That means you won’t owe any property tax on your home (in some counties, a small minimum payment may still apply).
💡 My personal experience: As a 100% disabled veteran myself, I was able to take advantage of this exemption and save thousands of dollars annually on property taxes. It’s one of the most valuable benefits available to veterans in Hawaii, and I strongly encourage anyone eligible to apply.
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Less than 100% Rating: If you are a veteran with a disability rating under 100%, the standard veterans’ exemption does not apply. However, some counties may have general disability-related exemptions. For example, Kaua‘i provides a $50,000 exemption for residents certified as less than 80% disabled:
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How to apply: You’ll need to submit proof of your VA disability rating (such as your VA award letter) along with your exemption application. Each county has its own required forms and documentation.
Why This Matters
Property taxes may seem like a smaller piece compared to a mortgage, but in Hawaii’s high-cost housing market, every bit of savings counts. For homeowners, the standard exemption can shave hundreds if not thousands off your tax bill each year. And for disabled veterans with a 100% disability rating, the exemption can mean a cap of $300/annual property tax in Honolulu County—a huge financial relief.
Final Thoughts
If you’re a homeowner in Hawaii, don’t leave money on the table—make sure you apply for the Homeowners’ Exemption. And if you are a disabled veteran with a 100% rating, you may qualify for the full exemption and eliminate property taxes altogether.
👉 Always double-check with your county’s Real Property Assessment Division for the most current rules, deadlines, and forms.
A Personal Note
As both a Realtor® and a retired Coast Guard veteran who has personally benefited from these exemptions, I know how important it is to maximize every opportunity to save in Hawaii’s housing market.
➡️ If you’re a veteran, military family, or local homeowner and want guidance on navigating Hawaii’s exemptions or your real estate options, I’d be honored to help.