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What is the problem with the cost of living in Hawaii?

While household incomes are on par with some of the more expensive states to live in, taxes on income in Hawaii are some of the highest in the country. The median household income in Hawaii is $88,005 with an average tax rate of 11.67% and a marginal tax rate of 22%.



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The truth is, Hawaii is consistently ranked as the most expensive state in the United States due to high housing, energy, transportation and food costs.

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Survey results show that Hawaii's high cost of living is the main reason. Food, housing and transportation simply cost too much here. Add high taxes and inflation on top of that and it's no surprise so many people are leaving.

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Visitors are spending more on hotels, food, transportation and recreation expenses now than they did pre-pandemic, due to an increase in demand and supply issues. And while many are forging on no matter what, some have decided to skip Hawaii for a more affordable destination.

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21 Honest Pros and Cons of Living in Hawaii—from a Resident
  • Con: You May Never Own a Home. ...
  • Pro: It's Easy to Embrace Condo Living. ...
  • Pro: Lots of People Go Off the Grid. ...
  • Con: But It's a Significant Up-Front Investment. ...
  • Con: You May Never Feel Like You Truly “Belong” ...
  • Pro: You'll Discover an Incredible Culture Here in Hawaii.


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A study by Kamehameha Schools cited the high cost of living coupled with a lack of job opportunities and career growth in Hawaii. Hawaii's cost of housing is 214% higher than the national average and the overall cost of living is 84% higher than the national average, according to Payscale.

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Before You Move to Hawaii Living in Hawaii has its perks, including year-round warm weather and access to some of the most beautiful natural scenery in the world. The island lifestyle is laid-back and relaxed, and there is a strong sense of community and connection to the land.

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The Hawaiian Islands, located in the center of the Pacific Ocean, are in a precarious position. The largest tsunamigenic earthquakes, which typically occur in places like Japan, the Aleutian Islands, and Chile, generate waves that more often than not head directly to Hawaii.

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Everything Is A Little Slower In Hawaii Get used to walking, talking, and living a little slower. Forget about same- or next-day Amazon deliveries. The slow pace is an attitude as well; there's no room in Hawaii for your rushed impatience. So, sit back, relax, learn to take it slow, and enjoy living in Hawaii.

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Cost of Living The most obvious drawback to living in Hawaii is our cost of living. Because everything needs to be imported, the cost of goods is significantly higher than any mainland market.

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Hawaii is the most expensive state in the U.S. while California ranks third. When you compare the cost of living in Hawaii and that of California, you will likely find that Hawaii's cost of living is considerably higher. The cost of living index in Hawaii is 196.3 while that in California is 138.5.

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