Cost of Living in California
Things cost about ▲ 11% more in California than the national average.
What Things Cost in California
Compared to the US national average
See raw index numbers
US national average = 100. Source: BEA Regional Price Parities 2023.
California is expensive, and no amount of sunshine changes the math. The state's overall cost of living runs about 35% above the national average, driven almost entirely by housing that is roughly 93% more expensive than the rest of the country. The median home price statewide sits around $769,000, and in the Bay Area and coastal Los Angeles, it is significantly higher. But California is not monolithic. The Central Valley, Inland Empire, and Sacramento region offer costs far below the coastal cities. The gap between San Francisco and Fresno is larger than the gap between many different states.
California at a Glance
Taxes in California
California's state income tax tops out at Up to 13.3%. The combined sales tax averages 7.25%. Property taxes run about 0.71% of home value, which on a $769,000 median home means roughly $5,460/year.
Cities in California
Ranked from least to most expensive. Index 100 = national average.
Explore California
FAQ About California
Housing is the primary driver. Decades of restrictive zoning, building regulations, coastal geography that limits development, and strong demand from high-income industries have created a chronic housing shortage. The median home price is roughly $769,000 statewide and over $1.3 million in San Francisco. Other costs like groceries and transportation run 10-20% above average, but it is housing that accounts for most of the gap.
California has a graduated income tax with rates from 1% to 13.3%. Most middle-income earners fall in the 4% to 9.3% range. The 13.3% top rate applies to income above $1 million. There is also a 1% Mental Health Services surtax on millionaire income. California's tax rates are the highest in the nation and represent one of the most significant financial considerations for anyone earning above the median.
The most affordable areas are in the Central Valley (Fresno, Bakersfield, Stockton, Modesto) and parts of the Inland Empire (Riverside, San Bernardino). These areas have median home prices in the $350,000 to $769,000 range, well below the statewide median. Sacramento has emerged as a middle ground: more affordable than the Bay Area with improving amenities and a growing job market, though prices have risen quickly.