All-items parity
110.0
US = 100.0
Hawaii (HI) | All-items parity 110.0
Hawaii Cost of Living 2026
Hawaii reads 110.0 on the BEA all-items price parity for 2024, the highest state figure in the dataset, and the components explain why: utilities price at 190.2 against a national 98.4 because oil-fired grids put electricity at 42.10 cents per kWh, and nearly everything else arrives by ship. The median home is $875,900 and groceries run $599 a month, both national highs. The counterweights are real: the lowest property-tax rate in the country, near-universal health coverage, and a climate that deletes heating bills.
Most expensive stateElectricity 42c/kWhLowest property-tax rate (0.28%)
Median Home
$875,900
2BR rent $1,953/mo
Median Income
$100,745
Household, Census ACS
Category breakdown
The four BEA price parities vs the nation
| Category | HI index | National avg | Difference |
|---|---|---|---|
| All items | 110.0 | 100.0 | 10.0% |
| Services: housing rents | 125.3 | 100.6 | 24.6% |
| Goods | 111.6 | 99.6 | 12.0% |
| Services: utilities | 190.2 | 98.4 | 93.3% |
| Services: other | 102.9 | 100.1 | 2.8% |
U.S. Bureau of Economic Analysis publishes these four component parities and no others. There is no federal grocery, healthcare or transportation price parity, so this table shows none. Food at home sits inside Goods; medical and transport services sit inside Services: other.
Sources: BEA Regional Price Parities by State (table SARPP), 2024 reference year, U.S. Bureau of Economic Analysis. Census ACS 2024 1-year (median income, home value), Hawaii Department of Taxation (GET, income tax), Tax Foundation (effective property tax), EIA (electricity rates), KFF (uninsured rate).
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Pros / offsets
What works in Hawaii.
The lowest property-tax rate in America. At 0.28% effective, Hawaii's rate is the gentlest in the country, with generous homeowner exemptions on Oahu. Even on a million-dollar home the annual bill is often under $3,500, less than many Texans pay on a home a third the price.
Healthcare that actually costs less. The 1974 Prepaid Health Care Act requires employers to cover employees working 20+ hours a week. The results show in the data: just 4.1% uninsured and average marketplace premiums of $395, among the lowest in the US, a genuine structural saving no mainland state matches.
No heating season, modest cooling. With average lows of 69F, Hawaii households never buy heating oil or run a furnace, and trade-wind design keeps many homes AC-light. High unit rates are partly offset by low consumption, and rooftop solar penetration is the nation's highest.
Incomes are high and the safety net is broad. Median household income of $100,745 ranks near the top ten, Medicaid is expanded, and multi-generational households, common in local culture, spread the fixed costs that crush single-earner mainland budgets.
Cons / drivers
Where Hawaii costs more.
Housing is the hardest problem in the country. A $875,900 median home against an $100,745 median income is the worst price-to-income ratio of any state. Island land, protective zoning and outside demand (mainland buyers, investors, military housing allowances) all compress supply; median two-bedroom rent is $1,953.
Everything ships in. Groceries average $599 a month, the highest in the US, and the goods parity of 111.6 reflects ocean freight on practically every manufactured item; the Jones Act's US-flag shipping requirement is frequently cited as an additional structural premium on island freight costs.
The GET taxes almost everything. Hawaii's 4% general excise tax (4.5% on Oahu with the county surcharge) looks low but is broader than any sales tax: it applies to services, rent and groceries, with businesses passing it through. On a full household budget it takes more than many 7% mainland sales taxes.
Top-tier income tax and 42-cent power. Brackets run to 11% among the highest in the nation, and electricity at 42.10 cents per kWh produces $248 average bills despite mild weather. The combination drives the out-migration of local families to Las Vegas and the Pacific Northwest that Hawaii has seen for years.
Tax + benefit signals
Hawaii tax and access overview
State income tax
1.4-11%
Graduated or flat
Property tax effective
0.28%
Of assessed value, annual
Sales tax (state)
4.00%
Local can add 1-4% more
Uninsured rate
4.1%
Medicaid: expanded
Your take-home pay in Hawaii
Federal, Hawaii and any local income tax on your salary, per paycheck.
The mortgage on a $875,900 home
Monthly payment at today’s rates with Hawaii property tax (0.28%) and average home insurance.
Metro variation
State averages mask city variation.
Hawaii averages 110.0 on the BEA all-items parity, but each island is its own market:
Oahu (Honolulu): Two-thirds of the state's population. Urban Honolulu condos are the entry point to ownership; single-family homes in town commonly exceed $1.1 million. The 0.5% county GET surcharge and rail-corridor development define the cost conversation.
Maui: The most expensive neighbor island, resort-driven, with the 2023 Lahaina fire tightening an already scarce housing market further.
Big Island (Hawaii County): The value island. Hilo-side homes can sell for half of Oahu prices, and Puna district remains the state's most affordable market, with lava-zone insurance as the trade-off.
Kauai: Small inventory, strong second-home demand, prices between Maui and the Big Island.
Neighbor-island living costs less on housing but more on goods, as inter-island freight adds a second shipping leg.
Frequently Asked
Hawaii cost of living, answered
Why is Hawaii the most expensive state?
Three structural reasons stack: isolation (nearly all goods arrive by ocean freight, with the Jones Act's US-flag requirement often cited as an added premium), oil-fired electricity (42.10 cents per kWh, the nation's highest), and island land scarcity amplified by protective zoning and outside buying demand. The BEA parity of 110.0 actually understates the gap for a mainland transplant, because the biggest single item, housing at a $875,900 median, is the one hardest to substitute away from.
Is Hawaii's 4% tax really lower than mainland sales taxes?
No, and this is the most misunderstood number in Hawaii budgeting. The general excise tax (GET) is levied on businesses' gross receipts at 4% (4.5% on Oahu) and applies to nearly everything: groceries, services, medical care, rent. A mainland 7% sales tax usually exempts groceries, services and rent, so on a full household budget the GET often takes more. It is simply spread thin and wide instead of narrow and visible.
How can Hawaii's property tax be the lowest in the country?
Tourism subsidizes it. Counties levy much higher rates on hotels, resorts and short-term rentals than on owner-occupied homes, and homeowner exemptions are generous. The effective residential rate works out to 0.28%, so a $1 million Oahu home with a homeowner exemption often pays around $3,000 a year, a fraction of what the same value would cost in New Jersey, Illinois or Texas.
What is the Prepaid Health Care Act and why does it matter?
Since 1974, Hawaii has required employers to provide health coverage to employees working 20 or more hours a week, the only state mandate of its kind. It predates the ACA by four decades, and it is why Hawaii's uninsured rate (4.1%) and average premiums ($395) are among the nation's lowest. For a working household comparing total cost of living, cheap reliable health coverage claws back a real slice of the paradise premium.
Which Hawaiian island is cheapest to live on?
The Big Island, decisively, and within it the Hilo side and Puna district, where homes still sell for less than half of Oahu prices. The trade-offs are inter-island freight on goods, fewer jobs and services, and lava-zone insurance considerations in parts of Puna. Oahu costs the most but has the deepest job market; Maui and Kauai sit between on price with resort-driven economies.
Why are local families leaving Hawaii?
Arithmetic. A median home of $875,900 against a median income of $100,745 means ownership is out of reach for most local wage earners, and the GET plus 42-cent electricity erode what is left. Las Vegas, with no income tax and homes at half the price, has absorbed so many former residents it is nicknamed the ninth island. The out-migration is the clearest real-world verdict on Hawaii's cost structure.