Retire by state
Retiring in Hawaii
Hawaii offers year round outdoor life and no tax on Social Security, set against the highest cost of living of any state.
A fit if
Mild weather all year, ocean and volcano landscapes, and a tax break on Social Security and many pensions matter more than price.
Hard look if
Everyday costs are the highest in the nation, and island living means distance from mainland family and pricier travel to reach them.
Figures verified May 31, 2026.
Cost of living
110
BEA index, U.S. = 100
State income tax
~3.5%
Blended planning rate
Social Security
Not taxed
2026 state treatment
Town guides
1
Researched town in-state
How the plan models Hawaii
The state lines the calculator actually changes.
These are the assumptions the planner applies for Hawaii. They are blended, middle-bracket planning figures, not a tax return. Exemptions, county rules, and your own income mix can move the real number.
Cost of living
110
BEA regional price parities put Hawaii about 10.0% above the U.S. average cost level. The U.S. average is 100.
BEA Regional Price ParitiesState income tax
~3.5%
Hawaii does not tax Social Security in the summary used here, but a 3.5% blended planning rate is used for taxable retirement-income context. IRA and 401(k) withdrawals can still need a state-tax line in Hawaii, with exemptions and local rules checked against current state guidance.
Tax FoundationSocial Security
Not taxed
Hawaii does not tax Social Security benefits under the current state-tax summary used here.
AARP / IRS Pub. 915Property tax
0.3%
Property tax is local, but the Hawaii state-level planning rate used here is 0.3% of home value. On a $350,000 home, that is about $1,000 a year before county detail.
Tax FoundationSales tax
4.5%
Tax Foundation puts Hawaii's 2026 average combined state and local sales tax near 4.5%, ranked 45 among states in that table.
Tax FoundationVehicle costs
Registration line
Vehicle costs still belong in the budget, but the vehicle-tax source used here does not flag Hawaii as a state where value-based vehicle property tax is the main planning issue.
FreeTaxUSA vehicle-tax guideLong-term care in Hawaii
The care cliff, in Hawaii dollars.
CareScout and Genworth 2025 median costs, compared with the national median. Long-term care is a separate planning layer from ordinary Medicare costs.
Assisted living
$12,096/mo
About $145,155 a year, 95% higher than the national median.
Nursing home (semi-private)
$15,473/mo
About $185,679 a year, 61% higher than the national median.
Home caregiver
$7,817/mo
About $93,808 a year, 17% higher than the national median.
Things to do in Hawaii
What daily life can look like.
Hawaii Volcanoes National Park on the Big Island
Hawaii Volcanoes National Park lets visitors see active volcanic landscapes, steam vents, and lava fields. Paved overlooks and a scenic drive make parts of the park reachable without long hikes.
National Park ServiceBeaches and snorkeling year round
Hawaii's warm ocean water supports swimming and snorkeling through every season. Calm bays on the leeward sides of the islands give gentler water for older swimmers.
Hawaii Tourism Authority (gohawaii)Coastal walking paths and gardens
Many island towns keep paved oceanfront paths and botanical gardens that are flat and easy to walk. The mild climate means these routes stay usable for most of the year.
Hawaii Tourism Authority (gohawaii)What to know about Hawaii
The trade-offs worth weighing.
Highest cost of living in the country
Hawaii ranks as the most expensive state to live in, with a cost of living index well above every other state. Housing, groceries, and electricity all run higher than the mainland.
World Population ReviewSocial Security exempt, but account withdrawals taxed
Hawaii does not tax Social Security benefits, and it exempts many employer funded pensions. Income drawn from a 401(k) or IRA is generally taxed at regular state rates, so the result depends on your mix.
Tax Foundation of HawaiiVolcanic activity and Pacific storm exposure
Parts of the Big Island sit near active volcanic zones, and the islands can face hurricanes, high surf, and tsunami warnings. Where you settle on the islands changes which hazards apply.
National Park ServiceRetirement towns in Hawaii
Towns we have mapped in Hawaii.
Weighing two states?
Put Hawaii next to another state.
Compare cost of living, taxes, Social Security treatment, property and sales tax, and long-term-care costs side by side.
Common questions
Retiring in Hawaii, answered.
Does Hawaii tax retirement income?
Hawaii does not tax Social Security benefits under the current state-tax summary used here. IRA and 401(k) withdrawals can still need a state-tax line in Hawaii, with exemptions and local rules checked against current state guidance. Hawaii does not tax Social Security in the summary used here, but a 3.5% blended planning rate is used for taxable retirement-income context.
AARP: how states tax retirement incomeIs Hawaii cheaper or more expensive than average?
BEA regional price parities put Hawaii about 10.0% above the U.S. average cost level. That price level is the first reason a national retirement number needs a Hawaii translation.
BEA Regional Price ParitiesWhat does long-term care cost in Hawaii?
In the CareScout and Genworth 2025 medians, Hawaii assisted living runs about $145,155 a year (95% higher than the national median) and a semi-private nursing-home room about $185,679 a year (61% higher than the national median).
CareScout / Genworth Cost of CareWhich towns in Hawaii have a retirement guide?
Hawaii has 1 researched town guide: Honolulu. Each one breaks down local costs, services, and things to do.
Does Hawaii tax retirement income?
Hawaii does not tax Social Security benefits and exempts many employer funded pensions, but withdrawals from accounts like a 401(k) or IRA are generally taxed at regular rates. Retirees living mostly on Social Security and pension income tend to fare better than those drawing heavily from retirement accounts.
Tax Foundation of HawaiiHow expensive is it to live in Hawaii?
Hawaii has the highest cost of living of any state, with an index well above the national average. Housing, groceries, and electricity are the main drivers, so a budget that works on the mainland may need to stretch further here.
World Population ReviewSources
- BEA Regional Price Parities
- Tax Foundation: state tax data
- AARP: how states tax retirement income
- CareScout / Genworth Cost of Care
- IRS Publication 915 (Social Security benefits)
- National Park Service
- Hawaii Tourism Authority (gohawaii)
- Hawaii Tourism Authority (gohawaii)
- World Population Review
- Tax Foundation of Hawaii
- National Park Service
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