How Much Does It Cost to Live in Hawaii?

The Hawaiian Islands have a cost of living significantly higher than the mainland United States. This elevated expense structure stems from the islands’ remote location and heavy reliance on imported goods. Understanding the financial considerations of living in Hawaii requires examining various expenditure categories, which this article details.

Housing Expenses

Housing is the most substantial financial commitment for residents across the Hawaiian Islands. Rental prices vary by island, with Oahu, especially Honolulu, having the highest rates. As of April 2024, the average rent for a one-bedroom apartment across Hawaii was $1,808 per month, and $2,309 for a two-bedroom unit. In Honolulu, these averages were $1,808 for a one-bedroom and $2,400 for a two-bedroom.

Purchasing a home involves considerable capital, with median sales prices significantly exceeding national averages. As of May 2025, the median sales price for a single-family home on Oahu was $1,175,000, and condominiums averaged $500,000. An annual income of at least $132,600 with a 20% down payment is suggested for a single-family home. For a $500,000 condo, an income of $84,000 is often needed.

Property taxes in Hawaii are generally lower than many mainland states, calculated at the county level. The effective property tax rate across Hawaii is around 0.27%. Homeowner association (HOA) fees are another significant cost for condominium owners, often including maintenance of common areas and amenities. Honolulu has some of the highest HOA fees in the nation, averaging around $730.75 per month. These fees can range from $350 to $1,000 monthly, depending on the building’s age, amenities, and services.

Utility expenses further contribute to housing costs, with electricity being particularly elevated. Hawaii has the highest residential electricity costs in the U.S., at 44.81 cents per kilowatt-hour. An average Oahu household consuming 500 kilowatt-hours per month could face an electricity bill of around $150. Total average utility costs, including electricity, gas, fuel, and water, can reach approximately $264.39 per month for renters. Average water bills typically range from $110 to $150, with a minimum base charge for sewer services around $105.

Daily Living Costs

Beyond housing, daily living expenses in Hawaii are notably higher than in other parts of the United States. Food costs are subject to significant price premiums due to importing 85% to 90% of the state’s food supply. This results in grocery bills 30% to 50% higher than on the mainland. For instance, a gallon of milk can cost between $7 and $8, and a dozen eggs might exceed $6.

Dining out also carries a substantial cost, with Hawaii leading the nation in restaurant spending. A basic fast-food meal can cost over $20 per person. Entrees at mid-range casual restaurants often range from $30 to $45, and a local “plate lunch” can range from $12 to $25. These prices reflect added expenses for shipping, labor, and commercial rents.

Transportation expenses are another considerable factor in daily budgets. Gasoline prices in Hawaii are among the highest due to import costs and local taxes. State and county gasoline taxes can range from 32.5 cents to 40 cents per gallon. Vehicle ownership includes additional costs like car insurance, which averages around $1,650 annually for full coverage. While public transportation options exist, personal vehicles are often necessary for flexibility.

Other recurring utility expenses also contribute to the overall cost. Internet service typically ranges from $50 to $100 per month, depending on speed. Mobile phone services also add to communication costs. Miscellaneous expenses for personal care and entertainment further contribute to the daily financial outlay.

Healthcare and Taxation

Healthcare expenses in Hawaii are influenced by the Hawaii Prepaid Health Care Act (PHCA). This state law mandates employers to provide health insurance to eligible employees. It requires employers to offer approved health coverage to employees working at least 20 hours per week for four consecutive weeks. Employers must pay at least 50% of the premium cost for employee-only coverage, and an employee’s share cannot exceed the lesser of 50% of the premium or 1.5% of their monthly gross earnings.

Despite this employer mandate, residents still incur costs through premiums, co-pays, and deductibles. The average Bronze plan premium for a 30-year-old in Hawaii is around $372 per month, lower than the U.S. average. Average individual deductibles for single coverage plans were $1,346 in 2020, with family deductibles averaging $3,248. Co-payments for office visits averaged $16.91.

Hawaii’s taxation system differs from many other states, lacking a traditional sales tax. Instead, the state levies a General Excise Tax (GET) on the gross income of businesses. The base GET rate is 4% statewide, with counties able to impose an additional surcharge of up to 0.5%, bringing the effective rate to 4.5% in some areas. This tax is applied at each transaction stage, and businesses often pass this cost onto consumers.

State income tax rates in Hawaii are progressive, ranging from 1.4% to 11% across 12 income tax brackets for the 2024 tax year. This places Hawaii among states with higher income tax rates. For a single filer earning $70,000 annually, the state income tax could be approximately $4,753, an effective tax rate of about 6.79%. These income taxes, combined with the GET, contribute to the overall tax burden.

Geographic and Lifestyle Factors

The cost of living in Hawaii is not uniform across all islands, varying by specific island and lifestyle choices. Oahu, particularly Honolulu, typically represents the highest cost due to its population density, status as the state capital, and economic hub. Conversely, islands like the Big Island may offer comparatively lower costs, especially in less developed areas like Hilo, which can be nearly 49% to 56% lower than Honolulu. These differences stem from tourism levels, goods availability, and infrastructure development.

Individual lifestyle decisions also play a substantial role in shaping personal expenses. Dietary choices, such as dining out versus cooking at home, can significantly impact food budgets. While groceries are expensive, cooking at home is generally more affordable than frequent restaurant meals. Transportation habits also influence costs; relying on public transport or biking can reduce expenses compared to owning a personal vehicle and purchasing high-priced gasoline.

Entertainment choices also affect expenditure. Engaging in free outdoor activities, such as beach visits or hiking, can be a cost-effective way to enjoy the islands’ natural beauty. Frequenting paid attractions, resorts, or nightlife venues will lead to higher discretionary spending. Consumer habits, including purchasing from large retailers versus smaller local shops, can also influence prices.

A comfortable standard of living in Hawaii requires a substantial income. For a single person, an annual income between $70,000 and $100,000 is often suggested, while families typically require $120,000 to $200,000. In Honolulu, a single person might need over $225,000 annually to live comfortably. In Hilo, the required salary could be around $120,411. Income levels must align with the specific island and desired lifestyle to manage the elevated expenses.