Military Pensions Untaxed — Under General Pension Law
Hawaii does not tax employer-funded pension distributions at all — and its own instructions name military pensions in terms. No age test, no cap, no income limit.
Verified August 27, 2026
What this benefit is
Hawaii does not tax employer-funded pension distributions at all — and its own instructions name military pensions in terms. No age test, no cap, no income limit.
What it's worth: The whole of your military pension, subtracted from Hawaii income
- The exclusion is general pension law for employer-funded plans; contributory portions of mixed plans are treated differently.
Who is entitled to it
- You receive military retired pay.
- Your home is in this state.
Not sure whether that describes you?
Answer a few questions about this benefit specifically — we only ask what this one actually depends on, and we stop as soon as we know.
How to claim it
Deadline: With your return- 1Subtract the military pension on the pension line of Form N-11 — it was included in federal AGI and comes out of Hawaii AGI there.
- 2The exclusion has no age requirement, no dollar cap and no income limit — do not look for a schedule that is not there.
- File with
- The state revenue department, on your annual return
- Annual
- Claimed once a year.
Sources
- authority · statuteHRS 235-7(a)(2)-(3) — exclusions from gross income (chapter 235 compilation, as of 31 December 2025)
- operating · published policyHawaii Department of Taxation
Why only one source type: The Department of Taxation's own N-11 instructions state it: Hawaii does not tax qualifying distributions from an employer-funded pension plan or a government retirement system, naming military pensions as an example.
This finder provides an informational match, not a government eligibility determination. The responsible agency decides your application.