Startup Costs in Hawaii

Data current as of May 2026

Hawaii has the highest cost of living in the US, with nearly everything costing more due to shipping. Commercial rents are steep, and goods that are affordable on the mainland carry a significant island premium. However, the state's massive tourism industry creates year-round demand for food, service, and experience businesses. The 4% General Excise Tax applies to all business revenue, not just retail sales.

Hawaii (HI) by the Numbers

LLC Filing Fee
$50
Annual Report
$15
State Income Tax
11.00%
Sales Tax
4.00%
Min Wage
$16.00/hr
Cost of Living
1.49x
Labor Cost
1.20x
Rent Index
1.55x

What Hawaii's Numbers Mean for Founders

  • State income tax tops out at 11.00%, one of the higher rates in the country.
  • Labor costs run 20% above the national average, so factor higher payroll into your first-year budget.
  • Commercial rent sits 55% above the national average, especially in Honolulu and the larger metros.
  • Minimum wage is $16.00/hour - on the high end nationally, which lifts your entry-level labor costs.
Capital: Honolulu
Major metros: Honolulu, Hilo, Kailua, Kapolei
Top industries: Tourism, Military, Agriculture, Construction

Hawaii Cost Guides (10)