California, known as the "The Golden State", is the most expensive large state, driven primarily by extremely high housing costs. Here is everything you need to know about the cost of living in the The Golden State — from housing and groceries to taxes, utilities, childcare, and what salary you actually need.
Here is what a typical month costs in California for a single person earning the median income of $84,900/year:
Each category shows how California compares to the national average. Green means cheaper, yellow means similar, orange/red means more expensive.
Adjust your salary to see a detailed monthly budget breakdown for living in California.
Select a state to see how much salary you would need there to maintain the same lifestyle you have in California.
The most popular cities for residents and newcomers in California:
Housing is the single biggest expense in California, as it is everywhere. The median home price in California is $785,000, and the median rent for a one-bedroom apartment is $1,850/month. With a housing cost index of 196, California housing is 96% more expensive than the national average.
Housing affordability is a real challenge in California. Many residents spend well over 30% of their income on housing. Consider looking at suburbs or smaller cities within the state for significantly lower costs.
California has a state income tax rate of 9.3%. On the median household income of $84,900, you will pay approximately $7,896/year in state income tax ($658/month). This is one of the higher rates nationally and significantly impacts disposable income.
The average single person in California spends approximately $480/month on groceries. A family of four can expect to spend $1,200-$1,440/month. The food cost index of 105 means groceries in California are 5% above the national average.
Gas prices in California average $4.85/gallon. For the average commuter driving 15,000 miles/year at 25 MPG, that is roughly $2,910/year in fuel costs.
California healthcare costs are 8% above the national average (index: 108). The average annual healthcare cost per person in California is approximately $6,480 including premiums and out-of-pocket expenses. Employer-sponsored health insurance covers the majority of working adults.
Infant daycare in California averages $1,500/month ($18,000/year). This is a significant expense that rivals rent in many areas. Many families in California find that one parent staying home is more cost-effective when two or more children need daycare.
California is a higher-cost state, but the higher expenses often come with higher incomes, better infrastructure, and more job opportunities. The median household income of $84,900 helps offset the 42% premium on living costs.
See all California financial calculators:
California (CA) has a cost of living index of 142, meaning it is 42% more expensive than the US average. Housing is the biggest factor with an index of 196. The median rent is $1,850/month and the median home price is $785,000. California ranks #49 out of 50 states for affordability (1 = cheapest).
For a single person, a comfortable salary in California is approximately $110,370/year ($9,198/month). For a family of four, aim for $186,780/year. This covers housing at 30% of income, groceries ($480/mo), transportation, healthcare, and a 15% savings rate. The median household income in California is $84,900.
The median rent for a one-bedroom apartment in California is approximately $1,850/month. A two-bedroom averages $2,498/month. Rent varies significantly by city: Los Angeles, San Francisco, San Diego are the most popular metro areas. Housing costs in California are above average — budget carefully.
California is a more expensive state (COL index 142), but offers strong job markets and high median incomes ($84,900). Popular areas include Los Angeles, San Francisco, San Diego.
The most affordable areas in California are typically smaller cities and rural areas away from the major metros. Within California, costs can vary 20-40% between the most expensive city (Los Angeles metro) and more affordable areas. San Jose and Sacramento tend to offer lower costs while still providing good amenities and job opportunities.
The average monthly grocery bill in California for a single person is approximately $480 ($1,200 for a family of four). California food costs are 5% above the national average. Shopping at Walmart, Aldi, and local discount stores can reduce this by 15-25%.
The average monthly electric bill in California is approximately $175. Total utilities (electric, gas, water, internet) average $385/month. California utilities are 13% above the national average. Utility costs are manageable for most households.
California has a state income tax rate of 9.3%. On the median household income of $84,900, that is approximately $7,896/year in state income tax. This is among the highest in the nation.