Is Hawaii Really the Worst State to Retire In?

By Kailey Hagen, CFP – Mar 28, 2026 at 4:00PM ESTKey PointsHawaii was ranked the worst state to retire in, according to The Motley Fool's research.This is largely due to the increased cost of goods because of the state's remote location.A high income tax rate adds to the expenses that retirees in the Aloha State face.Hawaii is a popular vacation destination, and it's not difficult to see why. If you enjoy warm weather and relaxing on beautiful beaches, you'll have a hard time finding a better spot. But like any state, Hawaii has its drawbacks. It just so happens that these drawbacks make it a pretty unfavorable choice for retirees, at least according to The Motley Fool's research on the best states to retire in. And when you look beyond the beautiful scenery, the picture gets more complicated fast. Image source: Getty Images. Hawaii is an island, which means many essentials of modern life have to be shipped in from the mainland or overseas. This makes the cost of goods higher in Hawaii than in much of the rest of the country. Housing is also very expensive here. That alone puts it beyond the reach of many retirees who are struggling to make ends meet. The state isn't especially tax-friendly for seniors, either. While it doesn't tax Social Security benefits, its income tax rate is one of the highest in the nation for people of all income levels. This, combined with the high cost of living, can give some retirees sticker shock. That's not to say it's impossible to retire comfortably in Hawaii. Many people do. But it's important to understand what you're getting yourself into first. Before going ahead with that plan, make sure you compare the average cost of living in your area with Hawaii's so you can understand how your expenses might change after you move.Read NextMar 28, 2026 •By Maurie BackmanRoth 401(k) Accounts No Longer Require RMDs -- What That Changes for Your StrategyMar 28, 2026 •By Maurie BackmanThe Sneaky Reason Your Medicare Costs Could DoubleMar 28, 2026 •By Kailey Hagen, CFPCan a Married Couple Retire on Social Security Alone?Mar 28, 2026 •By Kailey Hagen, CFPThis Could Be Your Best Retirement Account if You Plan to Retire in Your Mid-50sMar 28, 2026 •By Justin PopeWhat Happens to Your 401(k) When You Die?

What Heirs Need to Know in 2026.Mar 28, 2026 •By Maurie Backman3 Social Security Filing Myths That Could Cost Retirees ThousandsAbout the AuthorKailey Hagen, CFP, is a contributing Motley Fool retirement analyst covering Social Security, Medicare, and retirement planning.

Before The Motley Fool, Kailey was a research analyst for Reviews.com focusing on credit and banking products. She is a Certified Financial Planner® and holds a bachelor’s degree in English from the University of Wisconsin-Madison.TMFKailey