Im in the military and HI is listed as my state on my LES. Been paying state taxes since i joined. Am I a nonresident since I haven't lived there for 6years?

[rdadulas1435]

I read on HI tax facts 97-2 that military active members are exempt from HI income tax. My question really is if I'm a non resident and should they be taking out state tax out of my LES. If not could it be refunded?

[Carl]

YOu are not a non-resident of the HI and never will be until and unless you meet the requirements in item #4 of 97-2. HI considers you to be a resident, for so long as HI is your HOR as shown on your LES. Also, just changing your HOR on your LES does not make you a non-resident either.
It's apparent that you joined the military while living in HI (you were in processed at one of the MEPS stations in that state). Therefore that is your HOR and since HI was your residence prior to joining the military, it will remain your residence until you take actions to change it (per item #4) and can provide the necessary proof to the state. You can visit the base legal office for information on this. I would recommend it, if you intend to live the rest of your life elsewhere upon your retirement or separation from the military.
HI Facts 97-2 pertains to military stationed in Hawaii to have an HOR outside of that state, and have no intention of making HI the HOR, or domicile.
Understand the difference between ones HOR, their residence, and their domicile.
Your HOR is your tax home.
Your residence is where you physically live now, generally defined as the place where you "hang your hat" when you get home from work or deployment.
Your domicile is where you store/keep a vast majority of your personal belongings.in a somewhat "ready to use" state.

So if you are deployed on say, a 1 year deployment to Iraq for example, since it's a deployment of "1 year or less", that makes where you are stationed in Iraq your domicile.
 But where your family lives under your PCS orders on an accompanied tour, is your residence. If single, then where your permanently assigned dorm room is in the barracks, which is where you leave a majority of your stuff while deployed, makes that your residence.
For tax purposes the HOR shown on your LES is your tax home for both federal and state tax purposes.

[Critter]

First, you need to understand these two terms used by the military:

Home of Record. Your home of record is the state recorded by the military as your home when you were enlisted, appointed, commissioned, inducted or ordered in a tour of active duty.

State of Legal Residency. Your state of legal residency (SLR) is your “home of record,” unless you changed it to another state.

Military members often mistakenly think that changing the state on their paycheck records changes their SLR.

To change the SLR, a DD Form 2058 must be submitted to your local finance officer and accepted. For information on requirements for valid changes when filing Form 2058, check out this Fact Sheet on Legal Residence posted by the U.S. Air Force.

From a tax standpoint, your State of Legal Residency (SLR)  is considered your “domicile” or “resident” state as long as you are on active duty. Even if you are stationed in another state, you’re still considered a resident of your SLR.

To find out if you need to file a state tax return when you aren't stationed in your resident state, check out Military Information on State Websites. You will see links for each state with information for active duty military and their spouses.

For further information feel free to look at the following link: http://turbotax.intuit.com/support/go/GEN12772.

Varying State Rules on Military Pay
Military pay is taxable in your state of legal residence, while other pay, such as income from a second job, is taxable in the state where you are working. Only your state of legal residence may tax your military pay, thanks to the Service members Civil Relief Act, which prevents a state from taxing military pay just because a service member lives within the borders of that state. However, any non-military pay earned in the state you're stationed in is subject to income tax requirement in the state where it was earned.

Additionally, SLR rules are different for your spouse if you both live in two different states. Unless he or she is also an active-duty member of the military, your spouse is usually considered a resident of the state where you are stationed for state income tax purposes. Meaning, if you're married to a nonmilitary spouse and you file a joint return, it may become a bit complex.