Does Hawaii tax military retirement pay?
Not taxed
No. Hawaii does not tax qualifying distributions from employer-funded pensions, and its instructions name military pensions among them.
In the state's own words
Copied word for word from the official document linked below each quote:
“Hawaii does not tax qualifying distributions from an employer-funded pension plan.”
“If you received qualifying distributions from an employer-funded profit sharing, defined contribution, or defined benefit plan, or from a government retirement system (e.g., federal civil service, military pension, state or county retirement system), enter the qualifying amount here.”
Other retirement income in Hawaii
Partly. Hawaii does not tax qualifying distributions from employer-funded pension plans, including government and military pensions. Plans you fund yourself, such as IRAs and 401(k) contributions, are treated as your own investments and taxed. The Hawaii pension page has the details, and the Hawaii Social Security page covers Social Security. No. Hawaii does not tax Social Security.
Before you file or move
This page is about state income tax only. Your federal return has its own rules for military retired pay, and VA disability compensation is a separate benefit from retired pay. State rules change, and the details (age, years, which kinds of pay qualify, survivor benefits) matter. Check with the Hawaii Department of Taxation before you file or move.
Other states in the same group
Check our work
The answer above comes from this document. Follow the link and compare.
- 2025 Form N-11 InstructionsHawaii Department of Taxation. Read on November 13, 2026.