Hawaii's minimum wage of $16 in 2026 is among the highest in the United States, and it is significantly higher than than the base federal minimum wage of $7.25 still used in 20 states.
Assuming a standard 40-hour work week, the weekly minimum wage in Hawaii is $640. For full-time employees working 52 weeks per year, the annual minimum wage in Hawaii is $33.3K.
Based on $16/hr minimum
Based on $16/hr minimum
The minimum wage rate of Hawaii and its neighboring states ranges from $14 to $20.74, with an average of $16.47. Hawaii, at $16, has an above average hourly minimum wage within this group of states. Washington ($20.74) and California ($16.90) both have higher hourly rates than Hawaii. Oregon ($14.70) and Alaska ($14) have lower hourly rates than Hawaii.
While the general minimum wage is $16 per hour in Hawaii, there is one exception where workers may legally receive less than this amount:
Under certain conditions, employers may use a tip credit to pay tipped employees less than the applicable minimum wage.
Hawaii's cost of living index for 2025 is 185, which places it as the most expensive state to live in the United States.
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185
Assuming a standard 40-hour work week, the real wage in Hawaii, adjusted for the state’s cost of living index of 185, is approximately $8.65 per hour. This means that while the nominal minimum wage is $16 per hour, the purchasing power of those earnings is lower due to Hawaii's higher cost of living expenses. For full-time employees, the real weekly earnings amount to roughly $345.95, translating to an annual purchasing power of $17,989.19 when working 52 weeks per year.
Adjusted
Adjusted
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According to the most recent data, the median household income in the United States has seen a significant increase in 2023.
Hawaii’s minimum wage has increased through scheduled legislative changes enacted in recent years, with further increases planned under state law. Unlike some states, Hawaii does not use automatic inflation indexing, and future adjustments follow predetermined steps set by legislation rather than annual cost-of-living calculations.