How Much Money Do You Need to Live in Hawaii?

Hawaii is renowned for its natural beauty and unique island culture, attracting many who dream of living in paradise. However, the Aloha State has a high cost of living. This article provides a detailed financial breakdown of expenses individuals and families can expect when considering a move to or residence in Hawaii.

Housing Costs

Housing is the most substantial expense for residents across the Hawaiian Islands, significantly exceeding national averages. Rental costs vary by island and unit type. As of early 2025, a statewide studio averages $1,500 per month, a one-bedroom $1,816, and a two-bedroom $2,307. In Honolulu, Oahu, a one-bedroom apartment averages $2,300, with studios around $1,900. Kailua, also on Oahu, can see one-bedroom units averaging $2,500 and two-bedroom units reaching $3,200.

Rentals on the Big Island, particularly in Hilo, are more affordable, with a one-bedroom unit costing about $1,300 and a studio around $1,000. Kona sees slightly higher prices, with one-bedroom units around $1,600 and two-bedroom units at $2,100. Maui and Kauai also have elevated rental markets; for instance, one-bedroom units in Kihei, Maui, average $2,000, and studios are about $1,600. Līhuʻe, Kauai, offers one-bedroom apartments for approximately $1,800, and studios for $1,400.

For homeownership, Hawaii’s median home prices are among the highest in the United States. On Oahu, single-family homes had a median sale price of $1,054,500 in 2024, with condos averaging $540,000. The remote location and limited land contribute to these elevated property values. Overall, the state’s housing index is approximately three times the national average.

Property taxes in Hawaii are generally lower than in many mainland states but are calculated based on high assessed values. For Honolulu County (Oahu), the owner-occupant residential property tax rate for the fiscal year July 1, 2024, to June 30, 2025, is 0.35% of the assessed value. This rate applies to primary residences with an assessed value under $1,000,000. For properties over $1,000,000 or those not claiming a homeowner’s exemption, higher rates apply. Property taxes on Maui are calculated based on assessed value and property classification, with specific rates per $1,000 of assessed value.

Everyday Expenses

Beyond housing, daily costs in Hawaii are considerably higher than in most other U.S. states. Groceries are a significant expenditure due to the islands’ remote location and reliance on imported goods, with over 80% of food imported annually. A single person on Oahu can expect to spend around $514 per month on groceries. For a family of four, monthly grocery bills can range from $800 to $1,200. Basic items like milk can cost over $7 per gallon, and a dozen eggs around $5.

Utility costs are another substantial component. Hawaii has the highest residential electricity costs in the U.S., averaging about $0.396 per kilowatt-hour in November 2024. Average monthly utility bills for an individual or couple in a condo or small home can be around $475, including electricity at $190, water/sewer at $130, gas at $25, internet at $60, and cable TV at $70.

Transportation expenses also contribute to the high cost of living. Gasoline prices are consistently higher than the national average, with the statewide average for regular unleaded at $4.46 per gallon as of August 2025. Prices vary by island, with Kauai seeing averages around $5.01 per gallon and Oahu around $4.38. Car insurance in Hawaii is comparatively lower than the national average, partly due to relatively low minimum coverage requirements. The average annual cost for full coverage car insurance is around $1,431, while minimum coverage averages $456 annually. Public transportation, such as TheBus on Oahu, offers an alternative.

Additional Financial Considerations

Several other financial obligations contribute to the overall cost of living in Hawaii. Childcare is a notable expense, consistently ranking among the most expensive states. As of 2025, infant daycare (0-2 years) typically costs between $1,200 to $1,600 per month, while preschool-age daycare (3-5 years) ranges from $850 to $1,300 monthly. The average annual cost for infant care in a center-based setting was $22,585 in 2025, and for a 4-year-old, it was $13,156. These costs can vary by island, with Oahu generally being the most expensive.

Tax obligations in Hawaii include state income tax and the General Excise Tax (GET). Hawaii operates a progressive income tax system, with rates ranging from 1.4% to 11% for the 2025 tax year. The 11% rate applies to higher income brackets, such as single filers earning $325,000 or more. Standard deductions for 2024 include $4,400 for single filers and $8,800 for those married filing jointly. The GET is a business privilege tax imposed on gross income from business activities, typically passed on to consumers. The statewide GET rate is 4%, with some counties imposing an additional surcharge, bringing the effective rate to 4.5% or 4.712%.

Healthcare costs in Hawaii are lower than the national average, with average annual spending per person around $1,036.24 in 2024. Health insurance premiums still represent a regular expense. The average monthly cost for health insurance in Hawaii is $523 without subsidies, though this can be significantly reduced for eligible individuals through subsidies. For a 40-year-old, a Silver plan averages $523 per month, while two married 40-year-olds might pay $1,046 per month. Out-of-pocket expenses for medical care vary based on individual health needs and insurance plan deductibles.

Understanding Required Income

The high cost of housing, groceries, and utilities means a substantial annual income is required to live comfortably in Hawaii. For a single individual, a comfortable lifestyle necessitates an annual income between $70,000 and $100,000. Families generally require between $120,000 and $200,000 annually to maintain a similar standard of living.

These income estimates are influenced by lifestyle choices. Frequent dining out can significantly increase food expenses, as restaurant meals for two can range from $40 at casual spots to over $150 at higher-end establishments. Conversely, cooking at home and utilizing local farmers’ markets can help manage grocery costs. Relying on public transit where available, or choosing a more fuel-efficient vehicle, can help mitigate transportation expenses.

The decision to live in Hawaii also involves considering personal spending habits related to entertainment, leisure activities, and other miscellaneous purchases. While Hawaii offers abundant free outdoor activities, engaging in paid excursions or frequent social outings will add to the overall budget.