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Hawaiiincome tax up to 11%, lowest property tax, median home $840K

D+26  ·  Moderate tax burden  ·  COL index 196

B

11%

Income Tax

281

Violent Crime / 100K

80.7

Life Expectancy

$840K

Median Home

$1,850

Childcare / Mo

Hawaii in plain English

Worth knowing before you move to Hawaii

Hawaii has the lowest property-tax rates in the nation but the highest home prices, so the dollar bills are not low. Nearly everything is shipped in, which pushes groceries and utilities to the top of the national range. The state has a graduated income tax reaching 11% and an estate tax, and it does not tax Social Security or most public pensions.

What Hawaii taxes, and what it doesn't

Hawaii levies a graduated income tax that tops out at 11%. A household earning $75,000 pays an effective 7.3%, about $5,441 a year; at $150,000 the effective rate is 7.8%. Among the 41 states that tax income, Hawaii has the highest effective rate at $100,000 of income.

Property tax runs 0.27% of home value a year, roughly $2,268 on the state's median home of $840K. The national effective rate is about 1.10%, and Hawaii has the lowest rate of the 50 states.

Combined state and local sales tax averages 4.44%, the 6th lowest in the country (the state portion is 4%).

For retirees: Social Security benefits are not taxed, pension income is fully exempt, and an estate tax applies above $5.49 million.

Capital gains are taxed at a special rate of 7.25%.

Housing and the cost of living in Hawaii

Hawaii's cost of living index is 196, where 100 is the national average; that is the most expensive of the 50 states.

The median home costs $840K, 177% above the national figure and the highest among the states. A two-bedroom rents for about $2,500 a month.

Carrying costs matter as much as the price: home insurance averages $500 a year, flood coverage adds about $650 where it is needed, car insurance runs $1,120.

Budget $250 a month for electricity and gas, $900 a month in groceries for two, $1,850 a month for full-time infant care.

Safety, health and schools

Violent crime is 281 incidents per 100,000 residents in the FBI's 2023 Crime Data Explorer figures, below the median state (387); Hawaii is the 13th safest of the 50 by that measure. Property crime is 2,480 per 100,000.

Life expectancy is 80.7 years (County Health Rankings 2024). 4.8% of residents have no health insurance, and the state has expanded Medicaid. The Commonwealth Fund's 2023 scorecard ranks Hawaii's health system 11th of 50.

Education Week's 2023 Quality Counts report ranks K-12 schools 25th in the country.

Politics, guns and social policy

Politically, Hawaii is a solidly Democratic state that went to Harris by 26 points in 2024.

On guns, concealed-carry permits are may-issue, at the discretion of local authorities, a permit is required to buy a handgun, and Giffords grades the state's gun laws A.

Abortion is protected by state law. Marijuana is legal for adults. Hawaii is not a right-to-work state, and the minimum wage is $14.00 an hour.

Climate, risk and getting around

Natural disaster risk is moderate. The main hazards are hurricane, tsunami, volcano. Annual average air quality index is 18 (under 50 is good).

Hawaii has no top-25 hub airport, with about 75 nonstop destinations from its busiest airport.

Written from the figures on this page. Rankings compare the 50 states. Sources and years are listed with each figure below.

State Profile

60/100
255075100TAXES62SAFETY74HEALTH80SCHOOLS51AFFORDABLE3LONGEVITY89

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Taxes

Sources: state revenue departments · Tax Foundation 2026 · income-tax brackets 2026

Income Tax

11% top

Property Tax

~$2,268/yr on median home

0.27% / yr

Sales Tax

4.44% avg

Social Security

Exempt

Pension / IRA

Fully Exempt

Estate Tax

Yes — $5.49M exemption

Inheritance Tax

None

Capital Gains

7.25% rate

Housing & Cost of Living

Sources: Zillow · Census ACS · iii.org and state insurers 2026 · WRLURI 2018 · Census 2024 (HOA)

Price Level vs US (BEA)

Above US average (100)

110.0

Mortgages 90+ Days Late

FHFA, latest quarter

0.8%

Cost of Living Index

National avg = 100

196

Median Home Price

$840,000

Median Rent (2BR)

$2,500/mo

Home Insurance

Below national avg (~$1,900/yr)

$500/yr

Flood Insurance

$650/yr

Homestead Exemption

Home equity protected from creditors

$100,000

Asset Protection

Moderate

Homes in HOAs

HOAs dominate the housing stock (Census ACS 2024)

42.0%

Short-Term Rentals (Airbnb)

State enables county bans; most islands limit STRs to resort zones; most restrictive state.

State-Regulated

Crime & Safety

Sources: FBI Crime Data Explorer 2023 · SafeHome registry counts 2025 · HUD PIT 2024

Violent Crime Rate

Near national avg

281 / 100K

Property Crime Rate

Near national avg

2,480 / 100K

Traffic Fatality Rate

7.5 / 100K

Registered Sex Offenders

Below the state median (SafeHome 2025)

209 / 100K

Homeless Population

Among the highest homelessness rates — 35% unsheltered (HUD 2024 PIT)

805 / 100K

Healthcare

Sources: Commonwealth Fund 2023 · KFF · CDC

State Healthcare Rank

#11 of 50

Life Expectancy

Above national avg (76.4)

80.7 yrs

Medicaid Expansion

Expanded

Uninsured Rate

Well below national avg

4.8%

Education

Sources: Education Week 2023 · NCES · state statutes (school choice)

College Completion Rate

College Scorecard, in-state institutions (mean)

56%

Avg College Cost of Attendance

College Scorecard 2024

$23,362/yr

K-12 Quality Rank

#25 of 50

School Choice / Vouchers

Not Available

HS Graduation Rate

Near national avg (~87%)

84.2%

Pupil-Teacher Ratio

Near national avg (~16)

15.8 students/teacher

Childcare

Sources: Child Care Aware · Census ACS 2022

Avg Infant Care (Full-Time)

Very expensive (national avg ~$1,200)

$1,850/mo

Utilities & Daily Costs

Sources: EIA (electricity, weekly gas) · USDA · eGRID 2022

Grid Carbon Intensity

Dirtier than US average (~820)

1453 lb CO₂/MWh

Avg Monthly Energy Bill

Well above national avg ($150)

$250/mo

Electricity Rate

Well above national avg (13¢)

30.3¢/kWh

Energy Mix

22% renewable · ☀ 6% solar · 💨 6% wind

Avg Monthly Groceries

2-person household, moderate spending

$900/mo

Road Quality Rank

Among the worst roads in the US

#45 of 50

Airports & Travel

Sources: FAA · BTS

Nonstop Destinations

From state's primary airport

75+ routes

Major Hub Airport

Regional airport — connections via hub

No

Culture & Lifestyle

Sources: Census CBP · Brewers Association 2024 · Pollstar · AANR/TNS · AGA 2024

Urban Population

Highly urban — big city feel

92% urban

Restaurant Density

Outstanding food scene

620/100K

Religious Congregations

145/100K

Pro Sports Teams

NFL + NBA + MLB + NHL + MLS

None

Major Venues

Stadiums, arenas, amphitheaters (10K+ capacity)

2 venues

Craft Breweries

2.1/100K residents — Growing

30 breweries

Craft Distilleries

18 distilleries

Live Music

Kona Brewing birthplace; Maui Arts & Cultural Center; Hawaii Songwriting Festival

Decent

Transportation

Sources: NHTSA FARS · FCC · insurance rate surveys 2024 · IIHS helmet laws 2026

Car Insurance (Avg Annual)

$1,120

Traffic Fatality Rate

7.5 / 100K

Broadband Access

87% of households

Work From Home

State residents who primarily work from home (ACS)

56,305 workers

Social & Legal

Sources: Guttmacher · KFF · NCSL · state statutes 2026

Formal Volunteering Rate

AmeriCorps / Census CPS 2023 (US ~28%)

29.4%

Votes in Local Elections

AmeriCorps / Census CPS 2023

55.2%

Abortion Access

Legal to viability; strong state protections

Protected

LGBTQ+ Protections

Comprehensive

Marijuana

Recreational

Minimum Wage

$14/hr

Right to Work

No

Sports Betting

Illegal

Casino Gambling

No casinos

Online Gambling

Illegal

State Lottery

One of 2 states where all forms of gambling are illegal (with Utah). No lottery, no casinos, no sports betting.

No

Age of Consent

16

Sex Education

Sex ed required by state

Comprehensive

Medically Accurate Required

Yes

Nude Beaches & Naturist Clubs

Little Beach (Maui) · Red Hill (Oahu) · Spencer Beach (Big Island)

Nude beach

Environment & Climate

Sources: EPA AQI · NOAA · FEMA National Risk Index

Air Quality (Annual AQI)

Excellent (national avg ~38)

18

Natural Disaster Risk

Moderate

Primary Hazards

hurricanetsunamivolcano

Politics & Gun Laws

Sources: OpenElections 2024 · Giffords 2025 · state statutes

2024 Presidential Vote

D+26

Gun Laws

Gun ControlA
2A LibertyF

Carry Permit

May-issue

Purchase Permit Required

Yes

Carry in Bars

Prohibited

Carry in Restaurants

Prohibited

Carry in Places of Worship

Alcohol-establishment ban upheld (Wolford, 9th Cir.); worship ban enjoined; SCOTUS review pending.

Allowed

Gambling

Not Legal

Jobs & Economy

Sources: BLS QCEW 2024 · BLS JOLTS 2024 · BLS union membership 2025 · Census ACS

Job Openings Rate (JOLTS)

Near US average (~4.5%)

4.0%

Quits Rate (JOLTS)

Workers quit when they can find better; BLS 2024 average

2.0%

Job Market

+1.5% job growth · 2.9% unemployment

Moderate

Top Industries

TourismGovernmentHealthcare

Tech Jobs

#40 of 50

Healthcare Jobs

#25 of 50

Remote Work

16% of workers

Median Household Income

$94,814

Union Membership

Among the most unionized states (BLS 2025)

24.8% of workers

Business Climate

Sources: Tax Foundation · state filings

Corporate Income Tax

0.5% gross receipts tax applies

4.4%

LLC Formation Fee

$50 one-time

LLC Annual Fee

$15/yr

Business Climate Rank

#43 of 50

General Excise Tax (GET) at 4% on retail (0.5% on wholesale) applies in addition to income tax

Daily Life

Sources: American Pyrotechnics Association · state statutes 2026 · IIHS

Gas Price (Regular)

Well above avg (+1.25 vs national avg)

$4.55/gal

Consumer Fireworks

Sparklers and novelties only; all aerial fireworks banned statewide

Restricted

Motorcycle Helmet Law

Required under 18 (IIHS 2026)

Age-Limited

Weather & Natural Risks

Sources: NOAA · NWS Storm Prediction Center · FEMA NRI

Winter Severity

Avg January high: 78°F

Very Mild

Summer Heat

Moderate summers

87°F avg July

Annual Rainfall

63" / yr

Tornado Risk

Very Low

Hurricane Risk

Low

Wildfire Risk

Low

Flood Risk

Low

Natural Hazards

Sources: USGS · CDC · USDA APHIS · NOAA · FEMA NRI 2023

28LOW danger
Lava flow zone (Big Island)Centipedes the size of your handInvasive coqui frogs 24/7

Venomous Snakes

Minimal

Spider Hazard

Minimal

Scorpions

Low

Hurricane Risk

Moderate

Tornado Risk

Minimal

Wildfire Risk

Moderate

Earthquake Risk

High

Danger score is a composite index. Methodology ↗

Veteran Benefits

Sources: VA.gov · Military.com state guide · Tax Foundation

Veteran-Friendly Score

9.4% of state population are veterans

83/100

Property Tax Exemption

Disabled vet property tax exemption

Partial

Military Retirement Pay

Tax Exempt

Active Duty Pay

Tax Exempt

VA Facilities Access

Good

Notable Benefits

Military retirement fully exempt

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Trending in Hawaii

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What Residents Say

Welcome to Hawai'i, may we take your tax money?! : r/Oahu

Our 13% top rate now sits among the nation's highest. The cost of living in Hawaii continues to be among the highest in the country, with ......

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I have to move to hawaii eventually why not now

Unless you're making serious money local income taxes are around 5-6%. By far not the biggest expense to worry about....

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Frustrated and frightened: Is coming home a viable choice?

we currently live in VERY high cost of living area and have made it work (like one of the highest in the US) on $200k/year. Living in Hawaii was ......

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How can we save Hawaii?

Apparently there is a static cost of around $40k to $50k per year. Full-time resident have more tax breaks rather than the current meager 100k....

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Moving to Oahu

Hawaii real property taxes per dollar of assessed valuation are reasonable. I would recommend hiring an accountant to help you model costs of ......

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Possible Move from North Dakota to Honolulu

a much higher cost of living for everything else. it's around $2k-$3k to ship your vehicle to Hawaii, Just start off with a studio apt for $1, ......

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How do people live in Hawaii?

People are staggering about the cost of living in Hawaii but living here in terms of purchasing power is the same like living outside the US ......

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Should I move back to Hawaii?

I think cost of living wise Hawai is cheaper than where I currently am. ... taxes, bridge tolls and fees; and living on an earthquake fault ......

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[OC] How much money do you need to live happy in every ...

Or like, adjusted for the highest cost of living areas only. I grew ... Questions about moving to Hawaii? You can read our Moving to ......

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Hawaii will change its laws. We'll email you when it does.

One email when Hawaii changes a tax, gun, cannabis or abortion law. Unsubscribe in one click.

Hawaii Guides

relocation

Hawaii: Paradise With the Price Tag to Match

Hawaii's cost of living index sits around 180-185 in 2026, nearly double the U.S. average. The state

Data is informational only. Verify with a tax professional, real estate agent, and local sources before making relocation decisions. Crime data: FBI Crime Data Explorer 2023. Healthcare: Commonwealth Fund 2023; life expectancy from County Health Rankings 2024. Education: Education Week 2023. Housing: Zillow monthly index and Census ACS 2022. Insurance: rate surveys 2024. Sponsored links marked “Sponsored” may earn a commission. This does not affect our data or rankings.

Your Priorities

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Quick Profiles

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Annual Income

$150K

Affects effective income tax rate

$0$500K$5M+

Retirement Savings

$0

Affects pension and SS tax burden

None$500K$10M+

Social Security

None

Annual Social Security benefit

None$150K/yr

My Property Is Worth

$400K

Affects property tax burden

Tax burden ↓$1M$50M+

Home Buying Budget

$400K

Compared to state median home price

Hard to find$250K$5M+

Monthly Rent Budget

Don't care

Compared to state median 2BR rent

Don't care$10K/mo

Job Market

Don't care

State unemployment and job growth

Don't careHot market

Airport Access

Don't care

Direct flight destinations from state hubs

Don't careMust have hub

City vs Country

Mid-size city

% urban population

Deep countryBig city

Sunshine

Don't care

Annual sunny days per state

Don't careMax sunshine

Food Scene

Don't care

Restaurants per 100K residents

Don't careWorld-class

Political Preference

Neutral

State's political lean

LiberalConservative

Gun Laws

Neutral

State gun law grade (Giffords)

Gun Control2A Freedom

Abortion Access

Neutral

State abortion access policy

Pro-ChoiceNeutralPro-Life

Community

None

Congregations per 100K residents

AvoidDon't careSeek

Sports & Entertainment

Don't care

Pro sports teams and major venues

Don't careMust have pro teams

Cannabis Laws

Neutral

State cannabis legality

Prefer LegalNeutralPrefer Prohibition

Retiree Community

Neutral

% population 65+ (Census)

Young areaRetirement-heavy

Dating Market

Neutral

% adults never-married (Census)

Singles sceneFamily community

Safety / Low Crime

Don't care

Violent crime rate per 100K (FBI)

Don't careVery safe

School Quality

Don't care

K-12 rank (Education Week)

Don't careTop-ranked

Healthcare Access

Don't care

Healthcare system rank (Commonwealth Fund)

Don't careTop-ranked

Childcare Affordability

Don't care

Cost of living proxy for childcare affordability

Don't careMust be affordable