Cost of living in Hawaii is the most expensive state in the country with living index of 191.8. Hawaii as a whole is very safe and affordable country to live. The island presently receives 9.3 million visitors every year.
Eight pointed black star: Hawaii (Big Island)
Hawaii is a United States of America component state. in 1959, Hawaii became the 50th state of the United States. Hawaii is a volcano island chain located in the middle Pacific Ocean.
The islands are located 2,397 miles (3,857 kilometers) east of California, San Francisco, and 5,293 miles (8,516 kilometers) west of Manila, Philippines. The capital, Honolulu, is situated in the state of Oahu.
Water flood in hilly locations results in the massive runoff, which is responsible for the erosion that creates the various grooves, peaks, and V-shaped valleys indicative of the older volcano islands such as Kauai and Oahu.
Rain and waves have had a particularly significant impact on the islands’ more vulnerable windward regions.
Small red triangle down: FUN FACTS
Hawaii is the only state in the United States of America to have two official languages: English and Hawaiian.
Barack Obama, a Honolulu native, was elected 44th President of the United States in 2008.
Bette Midler, the entertainer, was also born in Honolulu.
The hula is a historical Hawaiian dance that uses movement to tell a story. Grass skirts and leis are frequently worn by dancers.
Surfing may have begun in what is now known as Hawaii. Professional surfers today ride waves as high as 50 feet.
What are the best activities in Hawaii?
Hawaii truly does offer something for everyone. Whether you want to be treated at a premium hotel on the coast or explore interior for a heart-pounding, adrenaline-fueled thrill, at least one of the state’s islands has the perfect activity for you!
Get your bearings with a tour—there are numerous options, and many are included in our unique My Hawaii vacation package offerings! Visit Oahu’s most famous landmarks on the USS Arizona Memorial and Historic Downtown tour.
Explore Maui’s top attractions along the gorgeous Road to Hana, snorkel with manta rays off the Kona Coast, or enjoy cultural Hawaiian performance at the Chief’s Luau!
Golf enthusiasts, as well as consumers, will find a sanctuary in Hawaii. Maui alone has 14 golf courses, several of which are regarded among the world’s best! On Oahu, shopping is plentiful—explore the boutiques that line the streets of Waikiki.
Shop for department store deals and brand names at Ala Moana, the world’s largest open-air shopping mall! For other things to do in Hawaii, click here or contact our My Hawaii Vacation Experts for their best choices!
There are various experiences to explore for those who want to search out their own adventures! Fly over a volcano in a helicopter, stroll through wetlands and national reserves on the Garden Isle (Kauai) or the Big Island (Hawaii Island), and try locally grown coffee and pineapple at the state’s numerous plantations! Learn to surf, dive, snorkel, and zipline there are businesses and schools ready to show you the ropes near the majority of the resorts!
Cost of living in Hawaii
According to studies, inhabitants of Honolulu must earn at least $110,000 to live comfortably. Of course, this is subjective, but the US Census reports that Honolulu’s typical household income was roughly $75,000 in 2021.
Whether subjective or not, that is a fairly large delta, indicating that many Honolulu residents do not live in great luxury. The cost of living in Hawaii is 88 percent higher than the national average, while housing costs are 202 percent higher.
To live comfortably in Hawaii, some estimates indicate that a salary of more than $122,000 is required. (Of course, standards of living vary by individual and are entirely dependent on one’s sense of “comfort.”) According to the Massachusetts Institute of Technology’s (MIT) Living Wage Calculator, an adult in Honolulu needs to earn $16.59 per hour to live. If a couple has two children, each adult must earn $17.70 per hour.
Although the average salary in Honolulu, the island’s capital, is $66,000, the state has one of the maximum income tax rates in the US, with a top rate of 11%. As per the Department of Labor, the average pay in the United States is $51,688 ($994 weekly) as of the third quarter of 2020.
According to another Indeed.com analysis published in January 2021, the average annual pay in Hawaii ranges from around $33,965 for a Customer Service Agent to $96,620 for a Travel Nurse. However, for many people, Honolulu’s attractive characteristics outweigh the risk for lower salaries and a high cost of living.
Small red triangle down: EXPENSES
Renting in Hawaii is far more expensive than on the mainland — and the cost varies by region. For example, a studio apartment on Oahu might cost between $1000 and more than $1,600 per month, without counting utilities, which can cost around $150 for one person.
A one-bedroom apartment or house can cost between around $1500 and more than $2000 per month, while a two-bedroom apartment or house can cost as little as $1,800 per month. Are you in the market for a brand-new, beautiful one-bedroom condominium? Budget at least $3,000 every month.
You can always live outside of Honolulu’s central business district or consider relocating to one of the other Hawaiian Islands – Hilo on the Big Island is nearly 48% to 55% less economical than Honolulu and provides an easygoing and relaxing small-town ambience that may attract more than the city’s hustle and bustle.
If you’re in the market to purchase a single-family house, the median sales price is $870,000 – a new record high as of December 2020. On Oahu, the median sales price of a condo is $455,000. Despite the high costs, Oahu’s home and condo sales continue to climb. Alternatively, purchasing land and building your own home may be more cheap, although this is location- and contractor-dependent. This blog post details the average costs associated with building a home in Hawaii.
Apartments in Hawaii
Rent prices for apartments in Hawaii are among the highest in the country, however the actual amount varies by island and side of each island. Honolulu Apartments are the highest-rated in the state, owing partly to their proximity to the commercial core and the majority of Honolulu jobs.
The following is the average rent for apartments in Honolulu and/or single family homes:
|Studios||$1,000 - $1,300|
|One-bedrooms||$1,400 - $1,700|
|Two-bedrooms||$1700 - $2,100|
|Three-bedrooms||$2,100 - $2,600|
These are only indicative ranges; actual values may vary greatly depending on the presence of ocean views or closeness to the water. To put things in perspective, these are the top ten most expensive apartments for rent in Honolulu.
The Big Island of Hawaii has far cheaper rent prices than Honolulu, which is again related to the volume of trade, employment, and closeness to employment.
Hawaii Island is significantly slower paced and has a smaller population density and employment prospects, which results in less demand for rentals and homes for sale, resulting in lower prices.
Purchasing A Home In Hawaii
Referring to the figure above, Hawaii’s astonishing median property prices reached over $835,000 for single-family homes and $400,000 for Honolulu condominiums for sale in 2019.
In spite of the absence of moderateness, Oahu’s lodging shortage is extreme, and thus, private engineers have run to the island trying to benefit from the interest. For the last 6-7 years, developers have been developing New Honolulu Condos in neighborhoods such as Kakaako and Ala Moana.
Developers are also heavily invested in the West Oahu districts of Hoopili and Koa Ridge, which will add approximately 15,000 new houses to the island over the next 15 years. Rumors of a Makaiwa Hills development in Makakilo may add another few hundred as well.
If you opt to reside outside of Honolulu’s bustling downtown region, you’ll need to factor in the cost of owning and operating a vehicle.
Gas rates in Honolulu are approximately $3.16 per gallon as of January 2021.
While using the bus or, in the province of Oahu, The Bus is a more cost-effective way of travel at $2.75 per ticket, this might not be the most enticing daily commute option.
If your job in downtown Waikiki or Honolulu, you almost likely will need to rent parking if your company does not provide it. Parking costs often vary between $100 and $200.
Residents of condominiums may also be required to rent a stall at a similar price, depending on the association’s bylaws.
Groceries In Hawaii
You will be hard pressed to find a more diverse selection of foodstuffs anyplace else in the globe than in Hawaii. Given our geographic location midway between the United States and Asia, as well as the abundance of tropical fruits indigenous to the islands, Hawaii’s cuisine options are plentiful.
Frequently, we hear guests exclaim in surprise at the Hawaii milk prices, which can reach as high as $8.99. If you live in this area, acquiring a Costco membership is critical in order to save money by purchasing in bulk.
Additionally, geographic location increases the price of foodstuffs due to the high cost of shipping them here. According to the aforementioned survey conducted by the Missouri Economic Research and Information Center, Hawaii groceries were placed 164.6 out of 100 on the national index. California came in second place with 119.3.
Income, Property Taxes, and General Excise (Sales), are the primary types of taxes in Hawaii. While Hawaii legally does not have a sales tax, it does have a 4% statewide tax on goods and services that accomplishes the same thing.
The income tax rate is variable, meaning that it varies according to your income. It has a marginal tax rate of 1.4 percent to 11%, with 12 tax brackets ranging from $0 to $200,000. Hawaii has the lowest median property tax in the US, at 0.26 percent of home value, while the actual amount paid is in the middle due to the state’s high property values.
Rather than a state sales tax, Hawaii imposes a 4% statewide gross receipts tax, dubbed the “General Excise Tax.” Counties and towns may apply a local sales tax of up to 0.5 percent in addition to the state sales tax. Honolulu is one such city, with a 4.5 percent total sales tax. This tax is applicable to all sales of goods and services and is levied on the business rather than the client - yet, similar to sales tax, this cost is passed on to the customer.
Hawaii Income Tax
Hawaii has the ninth highest income tax rate in the country, with the average family paying $2,264 in state income taxes. Your tax rate is determined by your tax bracket and filing status. It begins at 1.4 percent for single filers with incomes between $0 and $2,400 and rises to 11 percent for those earning more over $200,000. These figures double for married couples filing jointly.
Hawaii Property Tax
Hawaii is ranked 34th out of 50 states in terms of the average amount collected in property taxes. The specific calculations vary by jurisdiction but average 0.26 percent of the fair market value of a property across the state. The average annual property tax in Hawaii is approximately $1,324.00 for a home valued at the median of $517,600.
Property taxes in Honolulu County, Oahu, average 0.28 percent of a property’s assessed fair market value. It is in the middle of the pack when it comes to property taxes paid in the United States by county, ranking 1744th out of 3143 counties. The average annual tax payment in Honolulu County is approximately $1,549.
While these figures are reliable for estimation purposes, Honolulu County uses a convoluted system to calculate property taxes, making it difficult to predict how much you’ll pay in advance. There are property tax estimators available; however, keep in mind that they are only estimates, and your actual tax rate will depend in part on whether you are an owner occupant or an investment, as well as the property’s valuation.
Frequently Asked Questions - FAQs
People asked many questions about cost of living in Hawaii. We discussed a few of them below:
Is Hawaii an expensive place to live?
Hawaii’s Cost of Living and Housing. Renting a place in Hawaii is substantially more expensive than in the majority of the continental United States. A household must earn $6,272 per month or $69,114 per year to afford this rent without paying more than 30% of income on housing.
Where in Hawaii is the cheapest place to live?
If you believe that living abroad is prohibitively expensive and you’re looking for a destination where you won’t have to tighten your belt, we recommend checking out cities and areas on Hawaii’s cheapest island, the Big Island.
The island is more rural in nature, focusing on tourism and agriculture (Kona coffee, macadamia nuts, and orchids, for example). You may find that places like Hilo, with a typical property price of $346,400, are significantly more affordable. Therefore, if you enjoy a little seclusion, Hilo may be the place for you.
Is it safe to live in Hawaii?
The island as a whole is extremely safe, as are the many areas and districts on the island. The island presently receives over 9.3 million visitors every year.
What is the minimum amount of money required to live comfortably in Hawaii?
On Oahu, for example, a gallon of whole milk can cost $8.99 - the cheapest gallon is roughly $5.50 at Costco. Broccoli is priced at $3.79 per pound, while bulk carrots are priced at $3.49 per pound. And, while purchasing locally is preferred, Hawaii-grown mangos cost approximately $6.99 per pound.
What amount does it cost to stay in Hawaii?
As indicated by the Hawaii Department of Business and Economic Development (DBED), the fundamental least living compensation in Hawaii is around $17 each hour for a solitary individual.
Is it possible to live in Hawaii for $2000 per month?
Consider the $2,000 month-to-month rental worth of a two-room loft in Honolulu, which is 56 percent more costly than lodging on the Large Island. Generally, the Big Island has the lowest housing expenses, as it is considered the least expensive Hawaiian island to live on.
How wealthy is Hawaii?
While it takes around $240,000 to be in the state’s top 5%, it takes undeniably more to be in the top 1% in Hawaii. The Economic Policy Institute states that a minimum yearly income of $320,566 is required.
How do residents of Hawaii afford to live?
Having family and relatives here can assist you in meeting your living expenses. For instance, there are numerous multi-family units on the island in which families live alongside in-laws or grandparents.
Will Hawaii compensate you for relocating there?
Hawaii is offering to cover the cost of round-trip airfare to Oahu for a select group of remote employees in the United States who are ready to relocate temporarily. The initiative is part of a broader attempt to strengthen the local economy. 50 remote workers will be chosen as a cohort.
How can I obtain a rent-free apartment in Hawaii?
A Hawaii-based fruit-tree planting foundation will pay you to live there in exchange for assisting with their nursery. You get to live in rent-free cabin accommodations in the heart of the Hawaiian jungle in exchange for your caretaker position (for which you are compensated).
For far too many, Hawaii is a trophy destination, the once or never-in-a-lifetime event. According to some estimates, the average Hawaii vacation costs approximately $1,899 per person per week for sun and fun. Idyllic white sand beaches, crystal blue Pacific Ocean and mountainous backdrops are postcard-perfect settings that some find difficult to conceive as everyday existence.
3. What’s Minimum Wage In California
5. How Much Do Welders Make In Texas