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Hawaii Income Tax Exclusion for Military Pay Not Taxed Federally

Hawaii Department of Taxation
Military pay excluded from federal adjusted gross income is not taxed by Hawaii

Hawaii only taxes the military pay that is already in your federal adjusted gross income. Pay the federal government does not tax, such as combat zone pay and housing and subsistence allowances, does not get added back on your Hawaii return.

Check eligibility

How to apply

There is nothing to apply for. Start your Hawaii return from your federal adjusted gross income and do not add back military pay that was excluded federally.

What you'll need

Your federal return and your Leave and Earnings Statements showing which amounts were paid as allowances or as combat zone pay.

Eligibility

  • You are a Hawaii resident filing a Hawaii income tax return
  • You receive military pay that is not included in your federal adjusted gross income

Source

Official source