Military Retirement Pay Income Tax Exemption
100% exemption of military retirement pay and SBP payments from Hawaii state income tax.
Apply now
Apply directly through the official Hawaii agency.
About this benefit
Eligibility
All military retirees receiving retirement pay, including Survivor Benefit Plan (SBP), RCSBP, and RSFPP annuities. Must file Hawaii state taxes.
Covers
Full exemption of military retirement pay and SBP payments from Hawaii state income tax. Hawaii's top marginal rate is 11%, so this is highly valuable for retirees.
How to apply
Exclude qualifying income when filing Hawaii state tax return.
Verified against official source
Last checked 2026-05-06 against files.hawaii.gov. Always confirm current rates and rules with the Hawaii state agency before applying.
Other Hawaii Tax Benefits
See every benefit you qualify for in Hawaii
Get a personalized list of federal, state, and local veteran benefits based on your service history, disability rating, and Hawaii residency — in under 2 minutes.
Find My Hawaii Benefits