The short version
- Social Security taxed?
- No
- Income tax
- Brackets 1.4%–11%
- Property tax on a $300,000 home
- ≈ $870 / yr ($72 / mo)
- Everyday cost index (U.S. = 100)
- 185
- January / July high
- 80°F / 89°F
- Sales tax (state + local avg)
- 4.50%
Retiring in Hawaii
Paradise weather and the lowest property tax rate in America. Watch out: by far the highest cost of living in the country.
How Hawaii taxes your retirement income
Social Security: not taxed at all.
Pensions: Employer-funded pensions are exempt.
401(k) and IRA withdrawals: 401(k)/IRA withdrawals are taxed (unlike employer pensions).
The setup: Brackets 1.4%–11%.
Property tax & senior breaks
The average effective property tax rate is about 0.29% — roughly $870 a year ($72 a month) on a $300,000 home. Your county sets the real number.
Help for seniors: County homestead exemptions grow with age; amounts vary by county and reach $120,000+ in Honolulu.
Try your own home value in the Property Tax Estimator.
Everyday costs & sales tax
Overall cost of living runs about 85% above the U.S. average. The combined state and average local sales tax is 4.50%.
Weather
January days top out around 80°F and July days around 89°F, with roughly 271 sunny days a year. Watch out for: Rare hurricanes; vog (volcanic haze) on the Big Island.
Healthcare
Good care on Oahu; neighbor islands have limited specialists.
Estate & inheritance taxes
Hawaii has an estate tax. Estate tax above a $5.49 million exemption