United States
Cost of living in California
Cost of living in California sits at a Regional Price Parity of 110.7, meaning everyday goods, services, and housing cost about 11 percent more than the US average of 100. That makes California the most expensive state in the country, ranking 1st of 51 jurisdictions tracked. The tax picture compounds the price premium: the state levies a progressive income tax with a top rate of 13.3 percent, the highest in the nation, and a 7.25 percent base sales tax, also the highest state-level rate nationally. For someone relocating from a median-cost state, the combined effect of elevated prices and steep taxation means a salary that felt comfortable elsewhere will cover noticeably less ground here. Housing in major metro areas is the primary driver, but food, utilities, and professional services all index above average as well.
Price level
110.7
US = 100
National rank
1st
of 51, dearest first
Income tax
13.3%
top rate
Sales tax
7.25%
state base rate
What your salary is worth in California
Because prices here sit at 110.7 against the national 100, the same paycheck stretches differently than it would elsewhere. These figures hold buying power constant: the salary listed is what you would need in California to live as you would on the reference amount in another place.
| Same lifestyle as | $60,000 | $100,000 |
|---|---|---|
| US average | $66,420 | $110,700 |
| California (dearest) | $60,000 | $100,000 |
| Arkansas (cheapest) | $76,433 | $127,388 |
Compare California with anywhere in the US
To live the same in California you need
$70,000
to match $70,000 in California
Price level, US = 100
The equivalent salary keeps your purchasing power constant: it is your pay scaled by the ratio of the two price levels. Regional Price Parities measure what a fixed basket of goods and services costs locally. Source: U.S. Bureau of Economic Analysis, 2024.
California in context
The price premium in California traces most directly to land constraints and zoning restrictions in coastal counties, which have kept housing supply far below demand for decades. San Francisco, San Jose, and Los Angeles regularly rank among the most expensive rental markets in the world, while inland cities like Fresno or Bakersfield sit closer to the national median. The income tax reaches 13.3 percent only on incomes above one million dollars, but the 9.3 percent bracket begins at a relatively modest threshold, meaning many middle-income earners face rates comparable to the highest tiers in other states. California has no standard deduction equivalent that substantially offsets this. The state tends to suit high-earning professionals in tech, entertainment, or finance whose salaries are calibrated to local prices, but fixed-income households and lower-wage workers face persistent affordability pressure.
Just below sits Hawaii at 110.
Frequently asked questions
Is California expensive to live in?
California sits at a price level of 110.7 where the US average is 100, so a typical basket of goods and services costs about 11% more than the national norm. That ranks it 1st most expensive of 51 states. Housing is usually the largest single driver of the gap.
What salary do you need in California?
To match the buying power of $60,000 earned at the US average, you would need about $66,420 in California. The figure scales with the price level: a place dearer than average needs more, a cheaper one needs less. Your own number also depends on housing choice and household size.
How much tax does California charge?
California applies a top state income-tax rate of 13.3% and a base state sales tax of 7.25%. Brackets are 2025 inflation-adjusted single-filer figures. The 13.3% top rate includes the 1% Mental Health Services surtax on income over $1,000,000. Highest state-level sales tax rate in the US (7.25%). Local jurisdictions can add their own sales tax on top.
Cost of living in other states
Price levels are Regional Price Parities from the U.S. Bureau of Economic Analysis, Regional Price Parities (SARPP, MARPP), 2024 (public domain). State tax figures are the latest published rates from state revenue departments. All figures are estimates for general comparison and not financial advice; your own costs depend on housing, household size and lifestyle.