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Part of G.I. Jobs 50 States of Opportunity for Veterans series.

Using the Military Friendly® States Tool, this series explores what makes each state unique and why it may be the perfect place to begin your next mission.

Best States for Veterans: Hawaii

Let’s be honest: when most people picture Hawaii, they’re probably not thinking about job markets, VA clinics or military retirement taxes.

They’re thinking about beaches.

And yes, Hawaii has those.

But for Veterans, there’s another side to the Aloha State that doesn’t always get enough attention: Hawaii is one of the most strategically important military locations in the country.

All six branches of the U.S. military have a presence in Hawaii. The state is home to U.S. Indo-Pacific Command, Joint Base Pearl Harbor-Hickam, Schofield Barracks, Fort Shafter, Camp H.M. Smith and a network of other installations and commands. Hawaii’s defense economy brings approximately $7.9 billion in annual defense spending to the state and supports more than 20,000 civilian jobs and 31,000 contractor jobs.

That’s a lot more than tourism.

For a Veteran leaving active duty, Hawaii can offer something particularly valuable: a civilian career without completely leaving the military world behind.

And then there’s the lifestyle.

You can finish work and be at the beach.

You can hike through a rainforest on Saturday.

You can surf before work if you’re ambitious—or just sit on the beach and pretend you’re going to surf someday.

But here’s the catch:

Hawaii is expensive.

Really expensive.

The median value of an owner-occupied home statewide is more than $839,000, according to the U.S. Census Bureau. Median gross rent is $1,971.

So is Hawaii one of the best states for Veterans?

It absolutely can be.

But you need to go in with your eyes open.

Table of Contents

• Veteran Snapshot
• Why Veterans Choose Hawaii
• Hawaii by the Numbers
• Employment Outlook for Veterans
• Education Opportunities
• Veteran Benefits in Hawaii
• Healthcare & VA Resources
• Best Cities for Veterans
• Cost of Living
• Outdoor Recreation & Veteran Lifestyle
• Pros & Cons
• Is Hawaii Right for You?
• Frequently Asked Questions

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Veteran Snapshot

Category	Hawaii
Population	1,432,820
Veteran Population	87,697
Median Household Income	$100,389
Median Home Value	$839,100
Median Gross Rent	$1,971
Homeownership Rate	63.0%
Mean Commute	26.2 minutes
Veteran-Owned Employer Firms	1,111
Employer Establishments	32,911
Total Employment	520,043
State Minimum Wage	$16/hour
Major Military Installations & Bases	12 key installations/bases

Hawaii’s estimated population was 1.43 million in 2025, with approximately 87,697 Veterans according to the Census Bureau’s 2020–2024 data.

The state also had 1,111 Veteran-owned employer firms in 2023.

And while Hawaii’s Veteran population is much smaller than states such as California, Florida or Texas, the military’s presence is enormous relative to the state’s size.

Hawaii’s Department of Business, Economic Development & Tourism identifies 12 key military installations and bases across the state.

—

Why Veterans Choose Hawaii

There are two very different reasons Veterans choose Hawaii.

The first is obvious:

They love Hawaii.

The second is a little more practical:

Hawaii can make a surprising amount of sense for someone with a military or defense background.

Those two things overlap more than you might think.

The Military Community Is Huge

Hawaii is home to all six military branches, and the state serves as a major hub for U.S. military operations in the Indo-Pacific.

U.S. Indo-Pacific Command is headquartered in Hawaii, along with major component commands including U.S. Army Pacific, Pacific Air Forces, the U.S. Pacific Fleet and Marine Forces Pacific.

That creates a military ecosystem that is difficult to replicate elsewhere.

For a Veteran, that can mean:

• Former military coworkers nearby
• Military-focused employers
• Defense contractors
• Federal jobs
• Veteran organizations
• Military family networks
• Installation-adjacent businesses
• Familiarity with military culture

If you enjoyed the military community but didn’t necessarily love military life itself, Hawaii gives you an unusual middle ground.

You can be out of uniform without being completely disconnected from the world you came from.

—

The Defense Economy Is a Major Advantage

Hawaii’s defense economy accounts for approximately 8.3% of the state’s GDP and brings roughly $7.9 billion in annual defense spending. It supports more than 20,000 civilian jobs and 31,000 contractor jobs.

That’s significant.

And the opportunities aren’t limited to people who worked in combat arms.

Hawaii’s defense ecosystem needs people with experience in:

• Logistics
• Cybersecurity
• Information technology
• Intelligence
• Aviation
• Maintenance
• Engineering
• Communications
• Security
• Supply chain management
• Healthcare
• Project management
• Administration
• Facilities management
• Construction

That makes Hawaii particularly interesting for Veterans who want to translate military experience into civilian work without completely reinventing themselves.

—

Hawaii by the Numbers

Category	Hawaii
Population	1,432,820
Veterans	87,697
Median Household Income	$100,389
Median Home Value	$839,100
Median Gross Rent	$1,971
Homeownership Rate	63.0%
Mean Travel Time to Work	26.2 minutes
Veteran-Owned Employer Firms	1,111
Employer Establishments	32,911
Total Employment	520,043
Civilian Labor Force Participation	59.6%
State Minimum Wage	$16/hour

U.S. Census Bureau QuickFacts and Hawaii Department of Labor.

The numbers tell an interesting story.

Hawaii has a relatively high median household income—about $100,389—but that doesn’t necessarily mean residents feel wealthy.

Why?

Because housing and everyday expenses are high.

This is one of the most important things for Veterans considering Hawaii:

Don’t compare salaries. Compare purchasing power.

A $90,000 job in Hawaii isn’t necessarily equivalent to a $90,000 job somewhere on the mainland.

—

Employment Outlook for Veterans

Hawaii’s civilian economy is more diverse than the stereotypical “tourism jobs” image suggests.

Tourism is absolutely important.

But the state’s largest employment sectors also include government, healthcare and social assistance, construction, transportation and other industries.

Hawaii’s workforce plan identifies government, healthcare and social assistance and tourism-related industries as foundational sectors.

And recent growth has been strongest in several areas that line up nicely with Veteran experience.

Healthcare

Healthcare and social assistance added 1,400 jobs, or 1.8%, in the first quarter of 2026 compared with the same period a year earlier.

Veterans with medical, administrative, logistics or leadership experience may find opportunities across the healthcare system.

Construction

Construction added 1,200 jobs, or 3%, year over year, in the first quarter of 2026.

That creates opportunities for Veterans with experience in:

• Engineering
• Heavy equipment
• Project management
• Safety
• Facilities
• Logistics
• Skilled trades

Transportation & Logistics

Hawaii’s geographic isolation makes transportation and logistics essential.

Everything from food and fuel to construction materials and consumer products has to get to the islands.

That means logistics isn’t just another industry here.

It’s infrastructure.

Veterans with supply chain, transportation, aviation, port operations or logistics backgrounds can have a natural advantage.

Defense & Government Contracting

This is arguably Hawaii’s most obvious Veteran career opportunity.

Joint Base Pearl Harbor-Hickam houses major Navy and Air Force commands, while other installations support Army, Marine Corps, Coast Guard and joint missions.

And the state’s defense economy supports thousands of civilian and contractor positions.

If you’re coming out of the military with a security clearance, technical certification or specialized military occupational experience, don’t assume your best opportunity is in tourism.

There are defense-related civilian careers worth investigating.

Military Friendly® Employers

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Translate Your Military Experience

Hawaii’s defense economy is a great example of why Veterans shouldn’t automatically start over when they leave the military.

If you managed a maintenance program, you have project management experience.

If you ran logistics for a unit, you have supply-chain experience.

If you managed communications systems, you may have an IT or telecommunications career hiding in your résumé.

If you led people, you have management experience.

The trick is explaining it in language a civilian hiring manager understands.

Best Certifications for Veterans to Earn in Under 6 Months.

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Education Opportunities

Hawaii may not have the sheer number of colleges found in California or Texas, but Veterans still have several strong education options.

The University of Hawaii System includes campuses and community colleges across the islands, giving Veterans access to programs without necessarily having to leave the state.

For Veterans considering careers in healthcare, business, technology, education, engineering or other professional fields, the University of Hawaii system can be a practical starting point.

And there’s another advantage:

You can use federal Veteran education benefits in Hawaii.

GI Bill Benefits

The Post-9/11 GI Bill can be used for approved programs at Hawaii schools and training institutions.

The Hawaii State Approving Agency is responsible for reviewing and approving education and training programs for VA education benefits.

That includes more than traditional college.

Approved programs can include:

• Colleges
• Universities
• Trade schools
• Flight programs
• Apprenticeships
• On-the-job training
• Other career training

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Military Friendly® Schools

Before choosing a Hawaii school, Veterans should compare:

• Military credit transfer policies
• Veteran advising
• GI Bill participation
• Yellow Ribbon participation
• Veteran organizations
• Online programs
• Career services
• Tuition costs

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Veteran Benefits in Hawaii

Hawaii’s Veteran benefits aren’t necessarily flashy.

But there are several that can make a meaningful difference.

Military Retirement Pay Is Excluded From Hawaii Income Tax

This is one of the biggest financial reasons military retirees should consider Hawaii.

Hawaii law excludes compensation received as a pension for past services from state taxable income. That provision applies to military retirement pay.

So while Hawaii has a state income tax, qualifying military retirement income is not subject to Hawaii income tax.

That can be a meaningful advantage for a military retiree.

As always, tax situations vary, so retirees should confirm their specific circumstances with the Hawaii Department of Taxation or a qualified tax professional.

—

Property Tax Benefits for Totally Disabled Veterans

Qualifying totally disabled Veterans may receive exemptions on real property they own and occupy as a home.

The exact benefit varies by island and local government.

That distinction matters.

Hawaii doesn’t operate like one giant local property-tax system. County rules can differ, so Veterans considering homeownership should check the rules for the specific island and county where they plan to live.

Vehicle Registration Benefits

Qualifying Veterans with a 100% service-connected disability rating who are Hawaii residents may receive a $46 state registration fee exemption for one vehicle.

Honolulu County also introduced a separate benefit beginning July 1, 2026: Veterans age 65 and older who meet the requirements can receive an exemption from the $20 City and County of Honolulu motor vehicle registration fee for one noncommercial vehicle annually.

Those are relatively small benefits compared with a home-tax exemption or retirement-income exclusion, but they’re still worth knowing about.

Hawaii Office of Veterans’ Services

The Hawaii Office of Veterans’ Services is the state’s primary Veteran agency.

It assists with:

• VA claims
• Appeals
• Employment and reemployment
• Benefits
• Discharge documents
• Veteran advocacy
• Burial services
• Property-tax exemptions
• Veteran homes
• Other Veteran services

That makes it one of the most useful resources to bookmark if you’re moving to Hawaii.

Healthcare & VA Resources

Healthcare is an especially important consideration when you’re talking about an island state.

The good news:

Hawaii has a dedicated VA healthcare system serving Veterans across the islands.

The VA Pacific Islands Health Care System provides care at 12 locations in Hawaii and other Pacific islands, including the Spark M. Matsunaga VA Medical Center in Honolulu and community-based clinics in Hilo, Kailua-Kona, Maui, Kauai and elsewhere.

Spark M. Matsunaga VA Medical Center

Located in Honolulu, the Spark M. Matsunaga VA Medical Center is the primary VA medical center for Hawaii.

It provides a broad range of medical services and works with other healthcare organizations and universities throughout the region.

Neighbor Island Veterans

Veterans living outside Oahu have access to outpatient clinics, including locations in:

• Hilo
• Kailua-Kona
• Kahului
• Lihue
• Kaneohe
• Kaunakakai
• Lanai City

That’s important because moving to the Big Island or Maui isn’t the same as moving across town.

You need to know where your healthcare is.

And you need to know how far you’ll have to travel for specialty care.

The VA also uses telehealth to help Veterans receive care without always having to travel to a larger facility.

That can be particularly valuable for Veterans living on the neighbor islands.

Best Cities for Veterans

Hawaii is a little different from other states in this series.

Instead of thinking only about cities, you should think about islands + communities + commute + access to services.

Where you live will shape your experience dramatically.

Honolulu

Best for: Jobs, healthcare, military community and convenience

Honolulu is the obvious choice for many Veterans.

It’s where you’ll find the largest concentration of:

• Jobs
• Government agencies
• Healthcare
• Military commands
• Defense contractors
• Colleges
• Restaurants
• Entertainment
• Veteran services

It’s also home to Joint Base Pearl Harbor-Hickam and the Spark M. Matsunaga VA Medical Center.

The downside?

Cost.

Honolulu is not cheap.

But if your priority is maximizing access to jobs and services, it’s probably the strongest overall option.

Kapolei

Best for: Families and Veterans who want newer communities

Kapolei is on Oahu’s western side and has grown significantly in recent years.

It’s also near military communities and the Daniel K. Akaka VA Clinic.

For Veterans who want to be on Oahu but don’t necessarily want to live in central Honolulu, Kapolei can be an appealing alternative.

Just remember to look closely at commuting patterns.

Kailua

Best for: Lifestyle and access to the outdoors

Kailua offers a very different feel from Honolulu.

It’s known for beaches, outdoor recreation and a more residential environment.

For a Veteran who has already secured a job and wants lifestyle to be the priority, Kailua can be attractive.

The catch is, again, cost.

Hawaii has a way of making a beautiful view show up on your rent bill.

Hilo

Best for: Lower-cost island living and a slower pace

Hilo is on the Big Island and offers a much quieter lifestyle than Honolulu.

It’s also home to the Yukio Okutsu State Veterans Home and a VA clinic.

For Veterans who want:

• More space
• Outdoor recreation
• A smaller community
• Less urban congestion
• Access to Big Island nature

Hilo deserves a look.

The job market is smaller, however.

That’s the trade-off.

Kailua-Kona

Best for: Outdoor lifestyle and Big Island living

Kona offers sunshine, beaches, outdoor recreation and a growing community.

The VA’s newer Kona Community Based Outpatient Clinic provides primary care, mental health services, specialty referrals and other Veteran services.

It’s attractive for Veterans who want the Big Island lifestyle without living in Hilo.

But housing can still be expensive, and civilian career options are more limited than on Oahu.

Kahului

Best for: Maui lifestyle + access to services

Kahului is the commercial center of Maui and provides access to healthcare, employment, shopping and transportation.

The VA has a clinic in Kahului, and the Hawaii Office of Veterans’ Services maintains a Maui office as well.

For Veterans who want Maui but still need access to practical services, Kahului is worth considering.

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Cost of Living

Here’s where we need to stop pretending Hawaii is cheap.

It isn’t.

The Census Bureau reports:

• Median home value: $839,100
• Median gross rent: $1,971
• Median monthly homeowner costs with a mortgage: $2,904
• Median household income: $100,389

Those numbers explain why the state can be a fantastic place to live and a frustrating place to budget.

Hawaii Cost-of-Living Snapshot

Category	Hawaii
Median Home Value	$839,100
Median Gross Rent	$1,971
Median Household Income	$100,389
Monthly Homeowner Costs With Mortgage	$2,904
Homeownership Rate	63.0%
Mean Commute	26.2 minutes

And housing isn’t the only issue.

Because Hawaii is geographically isolated, transportation and consumer goods can cost more as well.

The smartest way to approach a Hawaii relocation is to build an actual monthly budget before you move.

Don’t just look at the salary.

Calculate:

Salary − taxes − housing − transportation − food − utilities − insurance = actual lifestyle.

Then compare that number with the mainland options you’re considering.

Outdoor Recreation & Veteran Lifestyle

This is the part that’s hard to beat.

Hawaii gives you access to an outdoor lifestyle that is genuinely difficult to replicate.

Depending on the island, you can spend your free time:

• Surfing
• Hiking
• Snorkeling
• Diving
• Fishing
• Swimming
• Paddleboarding
• Camping
• Sailing
• Mountain biking
• Hunting
• Exploring volcanic landscapes
• Visiting beaches
• Watching whales

And unlike some states where outdoor recreation is seasonal, Hawaii lets you spend time outside pretty much year-round.

For many Veterans, that’s more than a vacation perk.

It can change how you spend your life.

There’s a difference between saying:

“I should get outside more.”

and

“I can hike after work.”

Hawaii makes the second one realistic.

—

Military History Is Everywhere

Hawaii also offers something special for Veterans who appreciate military history.

Pearl Harbor isn’t simply a tourist attraction.

It’s one of the most significant military sites in American history.

Hawaii is also home to:

• Pearl Harbor National Memorial
• National Memorial Cemetery of the Pacific
• Battleship Missouri Memorial
• Pacific Aviation Museum
• Army and Marine Corps historical sites
• Numerous military museums and memorials

For someone who spent years in uniform, living in a place with this much military history can feel different.

You’re not just visiting history.

You’re living around it.

—

Pros & Cons

Pros

✔ Massive military presence

✔ All six military branches represented

✔ U.S. Indo-Pacific Command headquarters

✔ Major defense and contractor economy

✔ Strong opportunities in logistics, cybersecurity, aviation and government

✔ More than 20,000 civilian defense jobs

✔ More than 31,000 defense contractor jobs

✔ Military retirement pay excluded from Hawaii state income tax

✔ Strong VA healthcare network

✔ VA clinics on multiple islands

✔ State Office of Veterans’ Services

✔ Property-tax exemptions for qualifying totally disabled Veterans

✔ Veteran-specific vehicle benefits

✔ Strong education and GI Bill opportunities

✔ Incredible year-round outdoor recreation

✔ Large and established military community

Cons

✖ Extremely high housing costs

✖ High overall cost of living

✖ Smaller civilian job market outside Oahu

✖ Geographic isolation from the mainland

✖ Shipping and consumer costs can be higher

✖ Specialty healthcare may require travel depending on island

✖ Limited housing inventory in many desirable areas

✖ Traffic can be significant on Oahu

✖ Moving back to the mainland can be complicated after establishing roots

✖ Some industries are heavily dependent on tourism and government spending

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Is Hawaii Right for You?

Hawaii isn’t the right state for every Veteran.

And that’s actually important to say.

A lot of relocation content treats Hawaii like the obvious winner because, well…

It’s Hawaii.

But you’re not buying a vacation.

You’re building a life.

If you have a strong civilian career lined up, military retirement income, remote work, a defense-related career or a specialized skill that commands good pay, Hawaii becomes much more interesting.

If you’re trying to find a $50,000 job and rent a house by yourself, the math gets harder.

If you’re a military retiree, Hawaii’s exclusion of military retirement income from state taxable income is a meaningful advantage.

If you’re in cybersecurity, logistics, aviation, healthcare, engineering or defense contracting, Hawaii’s economy may offer opportunities that align closely with your military experience.

If you’re raising a family, you’ll need to pay particular attention to housing, schools, commuting and childcare costs.

And if you simply want a completely different life after military service?

Well…

Hawaii certainly qualifies.

There is something to be said for finishing your service and waking up the next morning somewhere that feels completely different from where you started.

But don’t make the decision based on a beach photo.

Make it based on a career plan, budget and lifestyle plan.

If those three things work, Hawaii could be one of the most rewarding places you choose for your next mission.

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Frequently Asked Questions

Is Hawaii a good state for Veterans?

Yes. Hawaii has a large military presence, strong defense and government employment opportunities, Veteran services, VA healthcare, education benefits and a substantial military community. The major drawback is the state’s exceptionally high cost of living.

How many Veterans live in Hawaii?

The Census Bureau estimates approximately 87,697 Veterans live in Hawaii based on 2020–2024 data.

The VA’s FY2025 estimate puts Hawaii’s total Veteran population at approximately 105,848, reflecting differences in methodology and reference periods.

Does Hawaii tax military retirement pay?

Hawaii excludes qualifying pension income for past services from state taxable income, which includes military retirement pay.

What military bases are in Hawaii?

Major military facilities include Joint Base Pearl Harbor-Hickam, Schofield Barracks, Fort Shafter, Camp H.M. Smith, Wheeler Army Airfield and other installations. Hawaii identifies 12 key military installations and bases across the state.

What are the best places for Veterans to live in Hawaii?

Honolulu, Kapolei, Kailua, Hilo, Kailua-Kona and Kahului are among the strongest options, depending on your career, budget and preferred lifestyle.

Does Hawaii have good VA healthcare?

Yes. VA Pacific Islands Health Care provides services through a network that includes the Spark M. Matsunaga VA Medical Center in Honolulu and outpatient clinics across several islands.

Is Hawaii expensive for Veterans?

Yes. Hawaii’s median owner-occupied home value was $839,100 and median gross rent was $1,971 for 2020–2024.

Veterans should compare salary and benefits against actual housing, transportation and daily living costs before relocating.

Can Veterans use the GI Bill in Hawaii?

Yes. Eligible Veterans can use federal GI Bill benefits at approved schools and training programs in Hawaii. The Hawaii State Approving Agency reviews and approves programs for VA education benefits.

Does Hawaii offer property-tax benefits to disabled Veterans?

Yes. Qualifying totally disabled Veterans may receive real-property tax exemptions on a home they own and occupy, although the specific benefit varies by island and county.

Does Hawaii have a strong defense industry?

Yes. Hawaii’s defense economy accounts for approximately 8.3% of state GDP, with about $7.9 billion in annual defense spending and more than 20,000 civilian and 31,000 contractor jobs tied to the defense economy.

What industries are hiring in Hawaii?

Healthcare, construction, accommodation, food services, transportation, government and defense-related industries are important parts of Hawaii’s economy. Healthcare and social assistance and construction were among the state’s strongest private-sector job-growth areas in early 2026.