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State Benefit·Hawaii·🏛️Tax Benefits

Military Retirement Pay Income Tax Exemption

100% exemption of military retirement pay and SBP payments from Hawaii state income tax.

Verified May 12, 2026againstfiles.hawaii.gov

At a glance

Benefit type
Tax Benefits — Hawaii
Who it's for
Veterans, Survivors
VA rating needed
No rating requirement
Estimated value
Full exemption (up to 11% state tax savings)
Where it applies
Hawaii
Last verified
May 12, 2026

What is Military Retirement Pay Income Tax Exemption?

Military Retirement Pay Income Tax Exemption is a Hawaii tax benefits benefit for veterans, survivors. 100% exemption of military retirement pay and SBP payments from Hawaii state income tax. The listed value is Full exemption (up to 11% state tax savings).

Who qualifies

VeteransSurvivors
  • Available to any veteran
  • Hawaii residency

How to apply

Apply through the official Hawaii agency.

Open application

Who is eligible

Eligibility

All military retirees receiving retirement pay, including Survivor Benefit Plan (SBP), RCSBP, and RSFPP annuities. Must file Hawaii state taxes.

What Military Retirement Pay Income Tax Exemption covers

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 for Military Retirement Pay Income Tax Exemption

How to apply

Exclude qualifying income when filing Hawaii state tax return.

Open applicationVerify at official source

Verified information & sources

Last verified: May 12, 2026

Official source: files.hawaii.gov

Apply at: tax.hawaii.gov

Compiled and fact-checked against the official source linked above. Benefit rules and dollar amounts change over time — always confirm current details at the official source before applying. A county Veterans Service Officer (VSO) is a free, accredited advocate who can review your eligibility and help you file at no cost.

Frequently asked questions about Military Retirement Pay Income Tax Exemption

Who qualifies for Military Retirement Pay Income Tax Exemption?▾
Military Retirement Pay Income Tax Exemption is for Veterans, Survivors; available to any veteran; hawaii residency. See the eligibility details on this page and confirm with the official source before applying.
How much is Military Retirement Pay Income Tax Exemption worth?▾
The listed value is Full exemption (up to 11% state tax savings). Amounts can change — confirm the current figure at the official source linked on this page.
How do I apply for Military Retirement Pay Income Tax Exemption?▾
Apply through the official source linked on this page. A county Veterans Service Officer (VSO) can review your eligibility and help you file at no cost.
Where can I verify Military Retirement Pay Income Tax Exemption?▾
Benefit rules and dollar amounts change, so always confirm current details at the official source linked on this page. A free, accredited county or state Veterans Service Officer (VSO) can also verify your eligibility and help you apply.

Other Hawaii Tax Benefits

Totally Disabled Veteran Property Tax Exemption

Full exemption from all county real property taxes for veterans with 100% service-connected disability.

Thousands of dollars annually

See every benefit you qualify for in Hawaii

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