Here's what Hawaii's high cost of living means for your $100 bill

Here's what Hawaii's high cost of living means for your $100 bill

HONOLULU (HawaiiNewsNow) - The buying power of $100 in the islands is just $85.62, according to a new Tax Foundation analysis.

That's the lowest purchasing power of any state, and just a smidgen above Washington, D.C. ($84.67).

The Tax Foundation used federal data to determine cost of living differences in each state. The result, not surprisingly, was that the prices for the same goods vary widely from state to state.

Your $100 bill goes the farthest in Mississippi, where it commands the purchasing power of $115.34. Arkansas ($113.90) and South Dakota ($113.64) rounded out the top three most affordable states, the analysis found.

That same $100 is worth the least in Hawaii, followed by New York ($86.43) and New Jersey ($87.34).

If that wasn't bad enough, consider this: Last year, the Tax Foundation estimated that $100 was worth about $86.06 in Hawaii. That's 44 cents higher than this year's estimate.

The Tax Foundation noted that many states make up for higher costs of living with higher salaries, but some break the rules.

Nebraska, for example, has both a low cost of living and higher incomes. Hawaii, meanwhile, has typically had lower salaries compared to states with higher costs of living.

Federal statistics show that the per capita personal income in the islands in the first quarter of 2016 was $48,915. The national average: $48,707.

By comparison, the per capital personal income in New York (which had the second lowest purchasing power) was $59,023. In New Jersey, it's $61,145.

Copyright 2016 Hawaii News Now. All rights reserved.