"Sunshine tax" or "Paradise tax" is an ironic term used in the United States and Canada to describe the phenomenon that salaries are often lower than the national average, and costs of living higher than the national average, in places that have a desirably temperate climate.
It arises because incomes are lower and the cost of living is higher in Hawaii than on the mainland.
Randall W. Roth, in a book entitled The Price of Paradise, listed a number of possible causes, including shipping costs, land availability, and differences in regulation.
The phenomenon arises because many people are willing to accept lower earnings and higher costs of living to live in a place like Hawaii,[4] California,[5] Florida,[6] Colorado,[7] British Columbia,[8] or other places with an attractive climate.
It is the added cost to live in one of the best climates on earth, where the sun shines almost every day.