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Cost of Retiring in Hawaii (HI) 2026

Hawaii does not tax Social Security but has a high top income tax rate and the highest cost of living in the US.

11%
Top Income Tax Rate
110.0
Cost of Living Index (Above average)
No
Taxes Social Security
$3,960
Est. State Tax on $60K Income

Tax on $60,000 Retirement Income

Gross annual income$60,000
Top state income tax rate11%
Estimated effective rate6.6%
Estimated annual state tax$3,960
Monthly tax impact$330
After-tax income$56,040

5 Cheapest Alternative States

StateRateEst. Tax on $60K
AlaskaNo tax$0
FloridaNo tax$0
NevadaNo tax$0
New HampshireNo tax$0
South DakotaNo tax$0

Moving from Hawaii to Alaska could save ~$3,960/year in state income tax alone.

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Source: IRS Rev. Proc. 2025-32, BEA Regional Price Parities (2024 vintage), SSA 2026 bend points. Tax estimates use a 60% effective factor on the top marginal rate as a simplified model. Consult a tax professional for your specific situation. Not financial advice.

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