Is it cheaper to live in Honolulu or Indianapolis?

Indianapolis, IN is cheaper. Its monthly baseline of $1,140 (1BR rent + utilities) runs about 44% below Honolulu, HI's $2,050, mainly because of rent.

How much more do you need to earn to live in Honolulu than in Indianapolis?

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $63,000 a year in Honolulu versus $39,000 in Indianapolis.

Which has lower taxes, Honolulu or Indianapolis?

Honolulu is taxed under Hawaii's rules (a top state income tax rate of 11.00% and a 4% state sales tax); Indianapolis under Indiana's (a top state income tax rate of 2.95% and a 7% state sales tax).

Honolulu vs Indianapolis Cost of Living 2026

Honolulu

Hawaii

$2,050/mo est.

Indianapolis

Indiana

$1,140/mo est.

Monthly estimate = 1BR rent + electricity + gas

A one-person monthly baseline (1BR rent plus typical utilities) runs $2,050 in Honolulu, HI versus $1,140 in Indianapolis, IN. Overall, Indianapolis, IN is roughly 44% cheaper to live in day-to-day than Honolulu, HI, driven mainly by rent.

Median household income is $85,428 in Honolulu, HI and $62,995 in Indianapolis, IN — about 26% higher in Honolulu, HI. Hawaii has a top state income tax rate of 11.00% and a 4% state sales tax; Indiana has a top state income tax rate of 2.95% and a 7% state sales tax.

Honolulu, HI

Indianapolis, IN

Rent

Studio

$1,390

$933

+33% in Honolulu, HI

1 Bedroom

$1,570

$963

+39% in Honolulu, HI

2 Bedroom

$1,983

$1,132

+43% in Honolulu, HI

3 Bedroom

$2,433

$1,304

+46% in Honolulu, HI

Buying a Home

Median Home Value

$834,100

$207,000

+75% in Honolulu, HI

Income

Median Household Income

$85,428

$62,995

+26% in Honolulu, HI

Metro Median Wage (annual)

$57,220

$49,340

+14% in Honolulu, HI

People & Lifestyle

Median Age

42.9 yr

34.1 yr

+8.8 yr in Honolulu, HI

Homeownership

48.6%

55.3%

+6.7 pp in Indianapolis, IN

Bachelor's+ (25+)

40.8%

34.2%

+6.6 pp in Honolulu, HI

Avg Commute

22.3 min

24.3 min

+2.0 min in Indianapolis, IN

Crime (per 100k/yr)

Violent Crime

214.1

936.6

+337% in Indianapolis, IN

Property Crime

1,919.8

3,351.7

+75% in Indianapolis, IN

FBI Crime Data Explorer. Offenses per 100,000 residents per year; agency reporting practices vary, so this is approximate.

Climate

Avg Annual Temperature

77.7°F

53.2°F

+24.5°F in Honolulu, HI

Annual Precipitation

17.1 in

42.4 in

+25.3 in in Indianapolis, IN

Gas

Regular Gasoline

$5.57/gal

$4.35/gal

+22% in Honolulu, HI

Area: West Coast (PADD 5) vs Midwest (PADD 2).

Public Transit

Base Fare (one-way)

$3.00

$1.75

+42% in Honolulu, HI

Adult base one-way fare — TheBus vs IndyGo (2026).

Utilities

Electricity (¢/kWh)

42.2

17.9

+58% in Honolulu, HI

Natural Gas ($/MCF)

$60.89

$12.49

+79% in Honolulu, HI

Residential, state-level averages (EIA). MCF = 1,000 cubic feet.

Groceries

Milk (gal)

$4.37

$4.14

+5% in Honolulu, HI

Bread (lb)

$2.10

$1.79

+15% in Honolulu, HI

Eggs (doz)

$2.25

$3.63

+61% in Indianapolis, IN

Ground Beef (lb)

$7.23

$6.97

+4% in Honolulu, HI

Chicken (lb)

$2.14

$2.15

+1% in Indianapolis, IN

Bananas (lb)

$0.74

$0.63

+15% in Honolulu, HI

Average prices — West vs Midwest (BLS). Regional where available, otherwise U.S. average.

State Taxes

Sales Tax (HI / IN)

+3.0 pp in IN

Income Tax (top rate)

11.00%

2.95%

+8.1 pp in HI

Honolulu vs Indianapolis — FAQ

Is it cheaper to live in Honolulu or Indianapolis?: Indianapolis, IN is cheaper. Its monthly baseline of $1,140 (1BR rent + utilities) runs about 44% below Honolulu, HI's $2,050, mainly because of rent.
How much more do you need to earn to live in Honolulu than in Indianapolis?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $63,000 a year in Honolulu versus $39,000 in Indianapolis.
Which has lower taxes, Honolulu or Indianapolis?: Honolulu is taxed under Hawaii's rules (a top state income tax rate of 11.00% and a 4% state sales tax); Indianapolis under Indiana's (a top state income tax rate of 2.95% and a 7% state sales tax).

Sources: US Census Bureau, ACS 5-Year (rent, income, home value, demographics); NOAA Climate Normals 1981–2010 (climate); EIA weekly retail (gas); Tax Foundation 2026 (state taxes).