Retire in Hawaii: Cost, Taxes & FIRE Number for 2026
Retiring in Hawaii costs about $98,000 a year on average, earning a F retirement tax grade and a #11 healthcare ranking. Here's the full breakdown — cost, taxes, and how much you actually need saved.
What It Costs to Retire in Hawaii
The average retiree in Hawaii spends about $98,000 a year ($8,167/month), based on BLS spending data for households 65 and older, adjusted for Hawaii's cost of living. That works out to a standard retirement number of $2,450,000 under the 4% rule, or $2.8M for early retirees using the more conservative 3.5% FIRE withdrawal rate.
How the numbers below are calculated:
Annual cost = BLS Consumer Expenditure Survey 2024 (65+ household spending) × Hawaii's cost-of-living index (MERIC Q3 2025).
Standard Retirement Number = Annual Cost ÷ 0.04 (4% rule, ~30-year horizon)
FIRE Number = Annual Cost ÷ 0.035 (3.5% rule, 40–50+ year horizon for early retirees)
Hawaii earns a F retirement tax grade from Plootus Research and ranks #11 of 50 states for healthcare quality. Combined with an average annual salary of $65,700 for working residents (median $54,280), that gives a fuller picture of what building — and eventually spending down — a nest egg looks like here.
Hawaii Retirement Snapshot
| Metric | Hawaii |
|---|---|
| Average annual retirement cost | $98,000/yr |
| Average monthly retirement cost | $8,167/mo |
| Standard retirement number (4% rule) | $2,450,000 |
| FIRE number (3.5% rule) | $2.8M |
| Retirement tax grade | F |
| State income tax | 11% max |
| Social Security tax | No tax — fully exempt |
| Healthcare quality rank | #11 of 50 |
| FIRE-friendliness rating | ★☆☆☆☆ |
| Average annual salary (working residents) | $65,700 |
| Median annual salary (working residents) | $54,280 |
Sources: BLS CES 2024 (65+); MERIC Q3 2025; BLS OEWS May 2024; Plootus Research 2026.
Your Hawaii-Adjusted Retirement Number
Pre-filled with Hawaii's average retirement spending — adjust for your own situation.
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How Hawaii Compares to Nearby States
| State | Annual Cost | Retirement Number | Tax Grade | HC Rank |
|---|---|---|---|---|
| Hawaii (this page) | $98,000 | $2,450,000 | F | #11 |
| California | $92,000 | $2,300,000 | F | #8 |
| Washington | $67,000 | $1,675,000 | B- | #14 |
| Oregon | $65,000 | $1,625,000 | C- | #41 |
→ Run a full side-by-side comparison in the State Comparison Tool
How Hawaii Treats Retirees on Taxes and Healthcare
Hawaii carries a F retirement tax grade from Plootus Research — one of the less tax-friendly states for retirees, largely driven by its high income tax rate of 11% max.
State Income Tax
Hawaii's state income tax tops out at 11% max — one of the highest in the country. Check current brackets and any retirement-income deductions before you file.
Social Security Tax
Hawaii does not tax Social Security benefits. This is one of the few bright spots in Hawaii's tax picture for retirees relying on Social Security income.
Hawaii ranks #11 nationally for healthcare quality — one of the stronger states for retirees who prioritize access to care, with universal health coverage that extends into retirement.
Frequently Asked Questions
Hawaii earns a F retirement tax grade and ranks #11 of 50 for healthcare quality. Average annual retirement spending runs about $98,000, requiring roughly $2,450,000 in savings under the standard 4% withdrawal rule. Whether it's a good fit depends on your priorities — Hawaii's state income tax is 11% max, and it does not tax Social Security.
Hawaii does not tax Social Security benefits. Confirm current thresholds and exemptions with a tax professional, since rules change year to year.
Using the standard 4% rule, retiring in Hawaii on its average annual cost of $98,000 requires approximately $2,450,000 in savings. That figure excludes Social Security, which most retirees layer on top to reduce the amount they need from their own portfolio.
At a 3.5% safe withdrawal rate — the more conservative rate recommended for early retirees facing a 40–50+ year horizon — Hawaii's FIRE number is approximately $2.8M, based on its $98,000/year average cost. Early retirees should also budget separately for healthcare before Medicare eligibility at 65.
- Bureau of Labor Statistics, Consumer Expenditure Survey 2024 (65+ age group)
- Missouri Economic Research and Information Center (MERIC), Cost of Living Index Q3 2025
- Bureau of Labor Statistics, Occupational Employment and Wage Statistics (OEWS) May 2024
- Kiplinger, Retirement Taxes 2026; WalletHub Best States to Retire 2026
- Plootus Research 2026 (tax grades, healthcare rank, FIRE ratings)
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