Retire in Hawaii: 2026 Tax & Cost of Living Guide
Lowest property tax rate in the nation, pensions exempt, capital gains at a favorable 7.25% flat rate. Offset by high income tax brackets and the nation's highest cost of living.
State income tax
Progressive — top rate 11.00%
Social Security
Not taxed
Estate tax
Yes
Property tax
0.27%
How Hawaii Taxes Retirement Income
- Social Security
- Not taxed
- Public pensions (state/federal)
- Not taxed
- Private pensions
- Not taxed
- 401(k) / IRA withdrawals
- Taxed
Exemption / exclusion
All employer-funded pensions exempt; 401(k)/IRA withdrawals from employee contributions are taxable
What Would You Pay in State Income Tax?
Rough estimates at the top marginal rate (actual effective rate will be lower for most retirees due to brackets, exemptions, and standard deduction):
| Annual Retirement Income | Estimated State Tax | Effective Rate |
|---|---|---|
| $50,000 | $5,500 | 11.0% |
| $100,000 | $11,000 | 11.0% |
| $200,000 | $22,000 | 11.0% |
Capital Gains in Hawaii
Capital gains taxed at a lower flat 7.25% rate
Estate & Inheritance Tax
State Estate Tax
Exemption: $5,490,000 · Top rate: 20%
Federal estate tax exemption is $13.61M (2024) — Hawaii's lower threshold means more estates are subject to state tax than federal.
Top Cities for Retirees in Hawaii
States With No Income Tax
Compare Against Other States
All 50 US States + DC
Ranked by tax-friendliness for retirees. Grouped by income-tax type.
Retirement Methodology Calculators
How much do the big names actually say you need? See each guru's assumed return and withdrawal rate, side by side with academic defaults.
FIRE Calculator
See how much you need to retire — in Hawaii or anywhere else.
Safe Withdrawal Rate
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Tax rates and programs are subject to change. Data is current for 2024–2025. Always consult a qualified tax professional before making relocation decisions.