How expensive is Hawaii? (Honolulu: sales, to rent, insurance)

[TwoByFour]

This is an FYI to those considering moving/retiring to Hawaii....

We are retired, we own our house on Maui on the windward (cooler) side of the island. Those things make a difference.

We moved here from Seattle in 2012.

Taxes
Hawaii has a state income tax but they don't tax SS or pensions.
Sales tax here is 1/3 what is was in Washington state.
Property tax here is 1/2 what is was in Washington state.

I estimate that we pay about $2500 less in taxes in Hawaii than we would in Washington.

Utiities
Our monthly total utility bill in Seattle averaged $400/month. That included water, electricity, gas, trash, and sewer. That was in 2012. It is probably more now.

Our total utility bill in Maui is $100/month. We have solar panels which saves us a lot, and we get a fair amount of rain so our water bill is no more than $25. But the biggest saving is that we don't have (or need) a furnace or A/C.

I estimate that we are spending about $3600 less in Hawaii than Seattle on utilities. If you don't have solar panels and you do have A/C, you will definitely spend more on utilities.

Expenses
Food and gasoline are our biggest local expenses. Food is about 15% higher here than Seattle.
Gasoline is about 20% higher here (at Costco) than the mainland.

I estimate we spend about $2200 annually more here for food and gas than the mainland.

Other
In Washington state, you pay for using any state park and many hiking trails. On Maui, all parks and county swimming pools are free. All beaches are free, including parking. Parking meters are rare or non-existent.

For us, living in Hawaii is cheaper than living in Seattle. Hope this is useful info to anyone thinking of moving here.

[whtviper1]

Taxes are typically the least of most people’s concern.

You’ll likely make half the income for professional jobs and you are on the most remote islands in the world. Have a wedding, funeral, family gathering, just plain homesick - good luck

[Arktikos]

How about cost to rent or own? Median home price on Oahu or Maui is approximately $775K. That's a whopper!

[Futuremauian]

Originally Posted by TwoByFour

This is an FYI to those considering moving/retiring to Hawaii....

We are retired, we own our house on Maui on the windward (cooler) side of the island. Those things make a difference.

We moved here from Seattle in 2012.

Taxes
Hawaii has a state income tax but they don't tax SS or pensions.

For us, living in Hawaii is cheaper than living in Seattle. Hope this is useful info to anyone thinking of moving here.

They don't tax Government pensions. Private pensions are taxed.
Sales tax here includes "services" and food. For example, if I visit my dentist or doctor my insurance pays for the visit, then I receive a bill for the tax on the visit.

[Rain Monkey]

Originally Posted by Futuremauian

They don't tax Government pensions. Private pensions are taxed.
Sales tax here includes "services" and food. For example, if I visit my dentist or doctor my insurance pays for the visit, then I receive a bill for the tax on the visit.

If I correctly recall, Washington St and Seattle in particular, do not charge a use or 'sales' tax on professional services such as doctors, lawyers, accountants, etc., however those business entities do pay state business and opportunity taxes...much like Hawai'i GET. I would expect those taxes are an unstated component of the hourly charges one would experience on those professional invoices.

[Rain Monkey]

FWIW, Seattle (city limits) does not charge a sales tax, currently in the range of a nose bleeding 10%, on food or meds. RE transactions are taxed at a lower rate. The property tax is around $10/$1000 of value per year. In other words, about $10,000 per $1 million in valuation. Property valuations between Seattle proper (city limits) and Honolulu are probably equivalent. Both likely less than current SFO valuations.

[Mikala43]

We do not have a sales tax, we have an excise tax. Taxes are on gross receipts, also on services and food.

[whtviper1]

Originally Posted by Rain Monkey

Property valuations between Seattle proper (city limits) and Honolulu are probably equivalent. Both likely less than current SFO valuations.

As of today:

Median list price Seattle: $678K Median list sq ft: $517
Median list price Honolulu (just Honolulu, not Oahu): $655K Median list sq st: $691 (reflecting smaller homes)
And the granddaddy of them all:
Median list price SF: $1.249M Median list sq ft: $1,058 - it should be noted, you still generally get over asking in SF

But again, if you think your salary from Amazon, Microsoft, Boeing will translate well to Honolulu I welcome you to think again.

And lets not forget, no state income tax in Washington. SF has it very bad - high home values, high property tax, high state income tax, and now limits on federal deduction on state/local taxes.

[Ian_Lee]

Utilities seem to be under-reported.

In Honolulu, no matter how much water you save, usually the monthly water/sewer bill can hardly be less than $100. There is a fixed monthly charge of about $9 on water billing and about $77 on basic sewer charge for single family home. That means even though you are away from home for the entire month, you still need to pay $87 regardless the tap has not been turned on and the toilet has not been flushed.

You can save some money if your house is not hooked up to the sewage system by having cesspool or installing septic tank. But the former requires hefty cleaning charge and the latter demands huge installation cost.

[hotzcatz]

Cesspools are no longer an option on Oahu and very limited everywhere else. The Department of Health may not approve a septic system if the sewer is an option. But, ask the state Department of Health for specific options for your property.

For many properties on Oahu, there may not be enough room for a septic system, they require a leach field.