Cost of Living in Hawaii
Things cost about ▲ 10% more in Hawaii than the national average.
What Things Cost in Hawaii
Compared to the US national average
See raw index numbers
US national average = 100. Source: BEA Regional Price Parities 2023.
Hawaii is the most expensive state in the country for everyday living. The overall cost of living runs roughly 37% above the national average, and unlike California, there is no affordable inland region to escape to. Nearly everything is imported across thousands of miles of ocean: groceries cost about 40% more, utilities run nearly 70% above average (highest in the nation), and the median home price exceeds $840,000. These are not just statistics. A gallon of milk that costs $3.50 on the mainland can cost $6 or more in Honolulu. But people live here because paradise has a price, and for many, the trade is worth making.
Hawaii at a Glance
Taxes in Hawaii
Hawaii's state income tax tops out at Up to 11%. The combined sales tax averages 4%, which is relatively low. Property taxes run about 0.29% of home value, which on a $840,000 median home means roughly $2,436/year.
Cities in Hawaii
Ranked from least to most expensive. Index 100 = national average.
Explore Hawaii
FAQ About Hawaii
Geography is the fundamental driver. Hawaii is the most isolated population center in the world, 2,400 miles from the mainland. Nearly all consumer goods, building materials, and energy must be shipped or flown in, which adds freight costs to everything. Land is scarce on volcanic islands, driving housing prices to a median above $840,000. Utilities are expensive because electricity is generated largely from imported petroleum. The tourism economy creates additional demand for the same limited housing supply.
Financial advisors typically suggest a household income of at least $120,000 to $150,000 for a modest but comfortable lifestyle in Honolulu. On the neighbor islands (Big Island, Maui, Kauai), $100,000 to $130,000 is a more typical threshold. These figures assume renting rather than buying. Homeownership requires significantly higher income or substantial savings for a down payment.
Yes. The Big Island (Hawaii Island), particularly the Hilo side, has the lowest housing costs in the state. Median home prices on the Big Island are roughly 30-40% lower than on Oahu. Groceries and utilities are still expensive due to shipping costs, but the housing difference is meaningful. Kona (west side) is more expensive than Hilo, and both are cheaper than Honolulu.