Lifestyle
Ready to retire in the beachy, serene Aloha State? Choose from one of these top cities—from every island of Hawaii —affording the best lifestyle for retirees.
Adam Cecil
Published April 10th, 2024
Adam Cecil
•
Published April 10th, 2024
Table of Contents
Key Takeaways
With beaches, golf courses and plenty of active lifestyle options, Hawaii is one of the most unique places to spend your golden years.
The Aloha State has one of the lowest average state and local tax burdens in the country for retirees.
The average property tax rate is the lowest in the United States, making home ownership affordable for many retirees.
The cost of living in Hawaii is above the national average, which makes it seem like an out-of-reach place to retire, but it should be noted The Aloha State has one of the lowest average state and local tax burdens in the country for retirees. If you’re in a higher-income bracket, you might get hit with a hefty income tax rate (maxing out at 11%) but the majority of residents don’t pay anything close to that, and Social Security benefits are entirely tax-free at the state level.
Is Hawaii a good place to live for retirees?
Hawaii may seem out of reach—both physically and financially—but thanks to low state and local tax burdens, it might be one of the most beautiful places you can afford to retire. Cost-of-living is also above the national average, but for more affluent retirees, there’s no reason you can’t make Hawaii home.
Is Hawaii tax-friendly for seniors?
The Aloha State has one of the lowest average state and local tax burdens in the country for retirees. If you’re in a higher-income bracket, you might get hit with a hefty income tax rate (maxing out at 11%) but the majority of residents don’t pay anything close to that, and Social Security benefits are entirely tax-free at the state level.
Do seniors in Hawaii pay property taxes over 65?
Seniors do pay property tax in Hawaii, but the average property tax rate is the lowest in the United States, and depending on where you live, you may be eligible for a number of exemptions that lower your property tax burden.
What benefits do seniors get in Hawaii?
The Executive Office on Aging in Hawaii offers a number of programs for seniors, including in-home and community-based services like legal assistance, congregate meals, housekeeping and chore assistance, and transportation.
Where is the best place to retire in Hawaii?
The good news: with multiple islands, there are a ton of beautiful places to retire to in Hawaii. The bad news: there might be too much choice. Read on to check out our round-up of the best cities from each of Hawaii’s main islands.
On the Big Island
Hilo
CITY POPULATION: 44,186
SHARE OF POPULATION 65+: 22.5%
COST OF LIVING FOR RETIREES: 55.6% above the national average
MEDIAN HOME VALUE: $488,755
MEDIAN RENT: $1,550
TAX RATING FOR RETIREES: Tax Friendly
Hilo has the vibe of a small town but with the amenities of a larger city; you won’t be short on grocery stores, boutiques, farmer’s markets, and parks. In addition, there are a few museums to keep your days varied when the beach is not enough. Properties are priced lower than bigger cities in Hawaii (like Honolulu), so you can make your dollar stretch a bit further, and still only be a one hour flight away from Oahu, if you want to take a day or weekend trip.
Waimea
CITY POPULATION: 9,904
SHARE OF POPULATION 65+: 19.6%
COST OF LIVING FOR RETIREES: 55.6% above the national average
MEDIAN HOME VALUE: $936,474
MEDIAN RENT: $4,500
TAX RATING FOR RETIREES: Tax Friendly
Known for its paniolo (Hawaiian cowboy) culture, Waimea is for those looking for more rural living. Home to the headquarters for the Keck Observatory and the Canada-France-Hawaii telescope, Wailea is located 2,600 above sea level, though it still boasts easy access to the beach. In February or March of every year, Waimea is home to a cherry blossom festival, celebrating the colorful trees most commonly associated with Japan.
On Oahu
Kaneohe
CITY POPULATION: 37,340
SHARE OF POPULATION 65+: 24.2%
COST OF LIVING FOR RETIREES: 56.3% above the national average
MEDIAN HOME VALUE: $1,063,358
MEDIAN RENT: $2,950
TAX RATING FOR RETIREES: Tax Friendly
Kaneohe is a coastal community with lots of outdoor activities available, such as fishing, boating, kayaking, and surfing. It’s only 25 minutes away from Oahu, though, in case you need any of the amenities a big city offers. Kaneohe is home to the Hoomaluhia Botanical Gardens and the Byodo-In Temple, which is home to a Japanese garden with koi ponds and (well cared-for) peacocks, both beautiful places to stroll, read, and meditate.
Wahiawa
CITY POPULATION: 18,658
SHARE OF POPULATION 65+: 19.7%
COST OF LIVING FOR RETIREES: 55.9% above the national average
MEDIAN HOME VALUE: $821,364
MEDIAN RENT: $2,300
TAX RATING FOR RETIREES: Tax Friendly
Situated between two mountain ranges—the Wai‘anae and the Ko‘olau—Wahiawa is a quieter city on Oahu, with fewer tourists than many other spots. Historically, it was a hub for agriculture, and is still home to the Dole Plantation (which features the world’s largest plant maze) with its miles of pineapple fields. Residents love to picnic or read along the shore of Lake Wilson. While homes certainly aren’t cheap, they are more affordable than other cities on Oahu.
Kailua
CITY POPULATION: 40,514
SHARE OF POPULATION 65+: 20.3%
COST OF LIVING FOR RETIREES: 56.3% above the national average
MEDIAN HOME VALUE: $1,447,603
MEDIAN RENT: $4,200
TAX RATING FOR RETIREES: Tax Friendly
A haven for those who prefer to bike or walk to get around, Kailua has a central town area and most residents live within a mile of it (and its gorgeous beaches). Only about 30 minutes from both Waikiki and Honolulu, it boasts multiple farmer’s markets every week and is home to two world-class beaches, Kailua Beach and Lanikai Beach. Former President Obama even has a house there!
Honolulu
CITY POPULATION: 405,295
SHARE OF POPULATION 65+: 21.9%
COST OF LIVING FOR RETIREES: 56.3% above the national average
MEDIAN HOME VALUE: $788,644
MEDIAN RENT: $2,650
TAX RATING FOR RETIREES: Tax Friendly
If you crave island charm (and weather), but require a city for abundant amenities, culture, and more, Honolulu is the answer. In the neighborhood of Kapiolani, you’ll living centers and amenities designed for seniors, as well as a medical center nearby. In the more upscale Kahala, enjoy the Waialae Country Club or shopping at the Kahala Mall. The local Kaalawai Beach is perfect for morning coffee or sunset strolls.
On Maui
Kihei
CITY POPULATION: 21,423
SHARE OF POPULATION 65+: 16.3%
COST OF LIVING FOR RETIREES: 55.6% above the national average
MEDIAN HOME VALUE: $1,115,427
MEDIAN RENT: $4,759
TAX RATING FOR RETIREES: Tax Friendly
Kihei is on the southwestern side of Maui, with dry, sunny weather year-round. It does have a lot of tourist activity, but that’s because it’s next to some of Maui’s most charming beaches; Kalama Beach Park is 36 acres and offers views of the West Maui Mountains.
Paia
CITY POPULATION: 2,470
SHARE OF POPULATION 65+: 15.8%
COST OF LIVING FOR RETIREES: 55.6% above the national average
MEDIAN HOME VALUE: $1,196,686
MEDIAN RENT: $6,500
TAX RATING FOR RETIREES: Tax Friendly
Health food lovers rejoice: Paia is home to Mana Foods, an enormous, well-known health food store with locally-grown produce from around the island. Only 20 minutes from the airport, Paia is a quiet place to live, with restaurants, shops, galleries, and even the occasional celebrity sighting—Willie Nelson has been known to pop into Charley’s Saloon. It’s the gateway to the gorgeous drive to Hana, if you wish to take a winding road to a bamboo forest, and is also walkable to several stunning beaches. On Kauai
Kapa’a
CITY POPULATION: 11,652
SHARE OF POPULATION 65+: 20.4%
COST OF LIVING FOR RETIREES: 55.6% above the national average
MEDIAN HOME VALUE: $914,472
MEDIAN RENT: $4,200
TAX RATING FOR RETIREES: Tax Friendly
Overall, Kauai is quieter than the other islands, so if you’re looking to escape the hustle and bustle during retirement, it’s worth looking into. Due to a heavy tourist economy, Kapa’a has many restaurants to sample and enjoy, as well as excellent outdoor recreation like paddleboarding, kayaking, and more. For those who prefer to stay on land, the Ke Ala Hele Makalae multi-use path wraps around the island’s eastern coastline, and is ideal to walk or bike along during one of Hawaii’s many perfect days.
Lihue
CITY POPULATION: 8,004
SHARE OF POPULATION 65+: 23.7%
COST OF LIVING FOR RETIREES: 55.6% above the national average
MEDIAN HOME VALUE: $833,947
MEDIAN RENT: $2,900
TAX RATING FOR RETIREES: Tax Friendly
Lihue, the county seat of Kauai, is the home to the island’s biggest airport and a cruise ship port. It is a haven for ocean activities, from kayaking to paddleboarding. Visitors and locals alike love to visit Wailua Falls, a breathtaking, easily-accessible waterfall, and finish off the day at Koloa Rum Company, where you can imbibe by sampling locally-made rum. Lihue is also home to many vibrant retirement communities.
Bottom Line
Choosing a city to retire in is a major decision, and dependent upon several factors. You’ll want to weigh what climate you wish to live in, your overall budget, and what kind of housing you’d like—a home, a townhouse, or something else entirely. If you’re looking to stretch your retirement dollars, it’s important to consider places that are very tax-friendly and have a lower overall cost of living. Consider these factors and speak with one of Retirable’s Certified Financial Planner® to discuss your goals and options.
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Adam Cecil is a freelance writer who has produced financial content for Retirable, Policygenius, and Donational, In his free time, he writes the weekly pop culture newsletter Night Water and produces independent fiction podcasts.
Share this advice
Adam Cecil is a freelance writer who has produced financial content for Retirable, Policygenius, and Donational, In his free time, he writes the weekly pop culture newsletter Night Water and produces independent fiction podcasts.
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