Maui Cost of Living: Your Essential Guide to Living in Paradise

Island living in Maui is like stepping into a postcard: tradewinds ruffle palm fronds, turquoise waters lap golden sands, and rainbows dot the skies. But then there’s the reality – ten dollar gallons of milk. One of these things is not like the others.

Maui’s natural beauty is world-renowned, but the cost of living here can be a stark contrast. Whether you’re looking at new listings in Maui, considering a long-term stay, or simply curious about what it costs to live in paradise, understanding the Maui cost of living is essential.

In this guide, we’ll break down the key expenses – from housing and transportation to groceries and utilities – so you can plan ahead and make informed decisions.

Here’s what we’ll cover:

• High Housing Costs: Driven by demand and limited inventory.
• Increased Daily Expenses: Higher prices for groceries, dining, and transportation.
• High Utilities: Premiums on electricity and healthcare.
• Taxes: Hawaii’s unique tax system adds to costs.
• Valued Lifestyle: Why many still find it worth the expense.

Whether you’re drawn to Maui’s beaches, its warm climate, or its close-knit community, it’s important to fully understand the costs that come with the island lifestyle. Let’s dive into each of these factors to help you prepare for your Maui journey.

Factors That Affect The Maui Cost of Living

Several key factors contribute to the high cost of living in Maui, making it one of the most expensive places to reside in the United States. Understanding these factors can help you better navigate the island’s economic landscape and plan accordingly.

1. Housing

Maui’s housing market is notoriously expensive, with limited inventory and high demand driving up prices. Whether you’re looking to rent or buy, expect to pay a premium for a place to call home, with market trends and advice indicating the median home price in Maui is well above the national average and rental rates are equally steep.

2. Transportation

Maui’s remote location means that most goods, including food and fuel, must be shipped to the island, increasing prices. Additionally, the costs to own and maintain a vehicle on Maui can be substantial, with higher gas prices and higher costs to service your vehicle.

3. Food

Dining out in Maui can be expensive, with many restaurants catering to tourists and charging resort prices. Even grocery shopping can be costly, as most food items must be imported from the mainland or other islands, leading to higher prices than you might find elsewhere.

4. Utilities

Electricity rates in Maui are among the highest in the nation, as the island relies heavily on imported oil for power generation.

5. Taxes

Hawaii has a relatively high tax burden, with a progressive state income tax and a general excise tax (GET) that applies to most goods and services. These taxes can add up quickly, contributing to the overall high cost of living in Maui. (More on Maui taxes later)

Despite these factors, many residents find that the unparalleled natural beauty, warm climate, and laid-back lifestyle of Maui make the higher costs worthwhile. By understanding the factors that contribute to the cost of living on the island, you can better prepare yourself for the financial realities of life on the Valley Isle.

Comparison of Cost of Living in Maui vs Mainland U.S.

When considering a move to Maui, it’s essential to understand how the cost of living on the island compares to that of the mainland United States. Generally, living in Maui is significantly more expensive than in most mainland cities, except for a few high-cost areas like San Francisco or New York City.

Housing

Housing remains the most significant cost difference between Maui and the mainland. As of April 2025, the median home price in Maui County is approximately $1,063,379, with a median sale price of $1,044,212, according to Zillow’s latest home values report. This compares to a national median home price of around $420,800. Rental prices are also higher, with a one-bedroom apartment in Maui averaging about $2,350 monthly.

Food

Groceries and dining out in Maui are notably more expensive than on the mainland. According to SmartAsset’s 2025 Grocery Prices Study, grocery prices in Hawaii have increased by 5.3% year-over-year, with cereals and bakery products rising by 6.5% and fruits and vegetables by 6.4%. Dining at a mid-range restaurant in Maui can easily cost $30-$50 per person, compared to $15-$30 in most mainland cities.

Transportation

Gas prices in Maui are consistently higher than on the mainland. As of May 2025, the average gas price in Hawaii is $4.484 per gallon, compared to the national average of $3.181, based on data from the American Automobile Association (AAA). Additionally, owning and maintaining a vehicle can be more costly due to higher service fees and limited dealership competition. However, the island’s compact size means residents often drive fewer miles, which can help offset some of these costs.

Utilities

Hawaii has the highest electricity rates in the nation. According to Choose Energy’s Residential Electricity Rates, as of May 2025, the average residential electricity rate in Hawaii is 42.69 cents per kWh, significantly higher than the national average. This is largely due to the state’s reliance on imported oil for power generation. Consequently, many residents invest in photovoltaic systems to reduce long-term energy costs.

Healthcare

Healthcare costs in Maui offer a mix of benefits and challenges. While Hawaii ranks among the most expensive states for healthcare overall, as noted by Forbes’ 2025 Healthcare Rankings, it also boasts the lowest health insurance premiums and deductibles for employer-sponsored plans, according to Forbes. However, specialized medical services may require off-island travel, adding to expenses.

Taxes

Hawaii’s tax structure is a key contributor to the higher cost of living when compared to most mainland states. The state imposes a progressive income tax, with rates ranging from 1.4% to 11%, significantly higher than many mainland locations. The General Excise Tax (GET), applied at 4% statewide and an additional 0.5% surcharge in Maui County (totaling 4.5%), is particularly impactful. Unlike a traditional sales tax, the GET applies broadly to nearly all goods and services, from groceries and dining to medical expenses and rent.

The Motley Fool’s analysis highlights how moving to Hawaii could nearly double annual expenses, with taxes being a major factor. While Hawaii doesn’t impose a sales tax like most mainland states, the GET’s cumulative impact can feel even more substantial for residents.

Childcare and Education

For families, childcare and education expenses are crucial considerations. While public schools in Maui are tuition-free, Maui school options include private schools where tuition can exceed $10,000 annually. Childcare costs are also high, with limited availability and long waitlists for quality providers, which can strain a family’s budget when compared to mainland options.

Cost of Living: Maui vs Mainland at a Glance

What Are Taxes Like For Maui?

When planning your budget for living in Maui, it’s important to factor in the various taxes you’ll be required to pay. Hawaii has a unique tax structure that can catch some newcomers by surprise, so it’s essential to understand what to expect.

1. Income Tax

Hawaii has a progressive state income tax, with rates ranging from 1.4% to 11%, depending on your income level. The state also doesn’t offer many of the deductions and credits available in other states, which can result in a higher overall tax burden for some residents. That said, the state just passed a large tax cut that increases the standardized deduction for lower to middle-income taxpayers.

2. General Excise Tax (GET)

The GET is a tax on businesses for the privilege of doing business in Hawaii, but it’s often passed on to consumers in the form of higher prices. The GET rate is 4% for most goods and services, with an additional 0.5% surcharge in Maui County, resulting in a total rate of 4.5%. Unlike a traditional sales tax, the GET applies to nearly all transactions, including services, rent, and medical expenses.

3. Property Tax

If you own a home or other real estate in Maui, you’ll be subject to property taxes based on the assessed value of your property. The property tax rate in Maui County is generally lower than in many mainland cities, with rates ranging from approximately 0.15% to 1.5%, depending on the property type, use, and value.

Residents who have paid Hawaii state income taxes for the previous year can apply for the homeowner rate. That is the lowest tax rate.

4. Transient Accommodations Tax (TAT)

If you plan on renting out your Maui property to tourists, you’ll need to collect and pay the TAT, which is currently set at 10.25%. This tax applies to short-term rentals, such as vacation homes and condos, and is in addition to the GET.

5. Other Taxes and Fees

Depending on your specific circumstances, you may also be subject to other taxes and fees, such as the barrel tax on imported oil, the rental motor vehicle surcharge, or the conveyance tax on real estate transfers.

While the tax burden in Maui can be higher than in many mainland locations, it’s important to remember that these taxes help fund essential services and infrastructure on the island, including schools, roads, and public safety.

Tips for Keeping Costs Down

As long-time Maui residents, we can speak to some ways people reduce their expenses. While you can’t avoid paying taxes and there are no shortcuts to affordable housing, some shopping habits, capital investments, and lifestyle changes can help keep more money in your wallet.

Buy A Costco Membership

Lower prices, buying in bulk, and Costco gas make it easy to quickly cover the cost of a Costco membership. Add in an excellent return policy, and getting your Costco card is a no-brainer.

An Amazon Prime membership is another potential avenue to cost savings. While we do our best to shop locally, the free shipping from Amazon Prime and other related deals help keep down costs. It also means discounts at Whole Foods in Kahului.

Shop at Farmer’s Markets of Join a CSA

If you truly want to shop local, there is no better way to do it than at one of the local farmer’s markets. It can also mean lower prices than buying at the grocery store.

If you know you will consistently purchase fresh local produce, you may also want to join a Maui CSA. A CSA, or Community Supported Agriculture, allows you to receive a box or large bag of produce on a weekly basis.

My family has a CSA membership with Pono Grown Farms located in Olinda. It is a good value compared to what you would get at the local grocery store or organic foods store.

Grow Your Own

If you have a green thumb, Maui offers a year-round growing season. If you have the space, time, and patience growing herbs, vegetables, and fruits could help reduce your grocery bill.

Look for Kama’aina Specials

Some businesses will offer discounted prices for local residents. Keep your eyes peeled for companies that advertise Kama’aina discounts or Kama’aina days.

You typically are required to provide proof of residency to obtain a discount. Also, asking every business you visit if they offer Kama’aina discounts is considered poor etiquette. Keep in mind that many small business owners are doing their best to make ends meet.

Alternative Energy

If you are buying a home and plan to live in it long-term, installing a solar energy system for your Maui home may be a wise investment. Our high utility costs can make the payoff on your system happen sooner. It makes that much more sense if you use or plan to convert to an electric vehicle.

Backyard Gatherings

As mentioned earlier in this post, dining out on island can be expensive. While supporting our local restaurants is great, backyard barbecues are a great way to socialize and enjoy good food with a lesser hit on the wallet.

Enjoy The Free Things That Maui Has to Offer

There’s an old saying that the best things in life are free. The same is true of Maui. The beach and county and state parks are free. You can’t go wrong with spending time in nature.

If you aren’t content sitting on the beach or going swimming, some of Maui’s more memorable activities have lower cost barriers to entry. Buy yourself a mask, snorkel, and fins, and you can have countless hours of adventure exploring local reefs. A bodyboard or a used surfboard are relatively low-cost vehicles for days of entertainment in Maui’s waves.

Maui Cost of Living: Worth It?

The Maui cost of living is undeniably high compared to most mainland locations. By understanding the various factors contributing to the high costs, such as housing, food, transportation, and taxes, you can better prepare yourself for the financial realities of island life.

Ultimately, the decision to live in Maui is a deeply personal one that requires weighing the financial challenges against the intangible benefits of being part of this vibrant community and living in one of the planet’s most beautiful places.

Connect with the Maui Real Estate Team

If you’re prepared to adapt to the island’s economic landscape, your next step is working with a real estate team that knows this market. Contact the Maui Real Estate Team today to get started on your journey!