How expensive is Hawaii to live in?

Hawaii has the highest cost of living of any US state (index ~186). The median home price is approximately $825,000 (highest in the US), groceries cost 50%+ more than the mainland, and utilities are the most expensive in the country. A family of 4 needs roughly $180,000-$200,000 to live comfortably in Honolulu.

What is the average salary in Hawaii?

The median household income in Hawaii is about $84,857 (2024), ranking 9th. However, after adjusting for cost of living, Hawaii has one of the lowest real purchasing powers in the nation. A $85,000 income in Hawaii has the purchasing power of about $45,700 on the mainland.

Living in Hawaii: Income, Housing, Taxes & Cost of Living (2026)

Hawaii at a Glance

Metric	Value	National Rank
Population (2024)	1.44 million	40th
Median household income	$84,857	9th
Median home price	$825,000	Highest in US
Cost of living index	186	Highest in US
State income tax	1.4-11%	2nd highest top rate
Sales tax (GET)	4-4.5%	Below average
Property tax (effective rate)	0.28%	Lowest in US

Housing: The Core Challenge

Island/Area	Median Home Price	Median Rent (2BR)	Median Income	Price-to-Income
Honolulu (Oahu)	$850,000	$2,400	$88,000	9.7
Maui	$975,000	$2,800	$82,000	11.9
Big Island (Kona)	$650,000	$2,000	$72,000	9.0
Big Island (Hilo)	$450,000	$1,600	$62,000	7.3
Kauai	$950,000	$2,600	$78,000	12.2

Cost of Living Breakdown

Category	Hawaii Index	National Average	Annual Difference (Single)
Housing	295	100	+$32,760
Groceries	152	100	+$2,600
Utilities	168	100	+$2,720
Transportation	132	100	+$3,200
Healthcare	108	100	+$400
Overall	186	100	+$41,680

Grocery Price Comparison

Item	Hawaii Price	Mainland Average	Difference
Gallon of milk	$7.50	$4.50	+67%
Dozen eggs	$6.80	$3.50	+94%
Loaf of bread	$6.20	$3.80	+63%
Chicken breast (lb)	$7.40	$4.20	+76%
Gas (gallon)	$5.20	$3.40	+53%

Taxes in Hawaii

Taxable Income (Single)	Tax Rate
$0 – $2,400	1.40%
$2,401 – $4,800	3.20%
$4,801 – $9,600	5.50%
$9,601 – $14,400	6.40%
$14,401 – $19,200	6.80%
$19,201 – $24,000	7.20%
$24,001 – $36,000	7.60%
$36,001 – $48,000	7.90%
$48,001 – $150,000	8.25%
$150,001 – $175,000	9.00%
$175,001 – $200,000	10.00%
Over $200,000	11.00%

Hawaii’s 11% top rate is the 2nd highest state income tax (behind California’s 13.3%).

Saving Grace: Lowest Property Taxes

Effective property tax rate of 0.28% — on an $825K home, that’s just $2,310/year. The same home in New Jersey (2.47%) would cost $20,378/year.

Hawaii Pros and Cons

Financial Pros	Financial Cons
Lowest property taxes in US (0.28%)	Highest cost of living in US
No tax on Social Security	Highest home prices in US ($825K median)
Strong military economy	2nd highest income tax (up to 11%)
Tourism creates jobs	Groceries 50%+ above mainland
Lower auto insurance rates	Highest utility costs in US
Beautiful lifestyle, outdoor living	Isolation = expensive travel to mainland