1 min readLast updated March6,2024by Rachel Carey
If you’re considering putting down roots in California but questioning the cost of living in the state, start your research here.
Summary
The fair weather, stunning sights, and excellent job prospects with high salaries result in a high cost of living in California.
According to 2021 research from the Bureau of Economic Analysis, California's average cost of living is $53,082 annually.
The average Californian spends just over $3,865 on non-restaurant food a year.
Speak to a financial advisor about getting and staying on top of your finances.
What is the average yearly cost of living in California?
The answer to this question differs depending on the area you aim to live in and the specifics of your situation. For example, a head of a household with three children will experience a higher average cost of living than a single person living alone.
According to 2021 research from the Bureau of Economic Analysis, California's average cost of living is $53,082 annually (rising into the $70,000s for heavily populated areas like Los Angeles).
Staying in control of your finances and maintaining a solid financial plan is essential regardless of where you live. A financial advisor can help you achieve this. By answering a few simple questions, Unbiased can connect you to a financial advisor perfectly suited to meet your needs. Get started here.
What are the housing costs in California?
The rental market in California is booming, with costs generally relatively high but varying considerably between areas. This is reflected by the broader housing market, meaning that the price of a property purchase in a particular area of California will provide you with a good barometer in terms of the area's rental costs, too.
| Area | Average home cost |
|---|---|
| Long Beach | $785,000 |
| Irvine | $1,376,990 |
| Oakland | $907,500 |
| Riverside | $537,523 |
| Los Angeles | $896,542 |
| San Francisco | $1,426,481 |
| Sacramento | $531,642 |
| San Diego | $895,660 |
| San Jose | $1,164,261 |
| Anaheim | $802,500 |
| Fresno | $358,981 |
| Bakersfield | $380,000 |
| Santa Ana | $759,500 |
| Stockton | $440,000 |
| Modesto | $430,000 |
| Chula Vista | $729,000 |
| Fremont | $1,260,000 |
| San Bernardino | $500,000 |
| Santa Clarita | $730,000 |
| Moreno Valley | $505,000 |
What is the average cost of utilities in California?
The cost of living in California is high, and utility bills are no different. Take electricity, for example. According to the Save on Energy November 2023 report, the average electric bill in the United States is $142.73. In California, this is $159.64, which puts California 42 in the national cost rankings.
Other average utility costs in the state are broken down here:
| Utility | Average bill amount in California |
|---|---|
| Water | $77–84 monthly |
| Electricity | $160 monthly |
| Gas | $409 monthly |
| Cable and internet | Costs can start from $9.99 monthly |
What are the average grocery and food costs in California?
According to the Bureau of Economic Analysis, the average Californian spends just over $3,865 on non-restaurant food a year. This is $322.08 per person per month. When you consider the average family of four, this amounts to $1,288 per monthon groceries.
| Food item | Average cost in Los Angeles | Average cost in San Francisco | Average cost in Santa Clarita | Average cost in Sacramento |
|---|---|---|---|---|
| Milk | $0.30 | $0.39 | $0.31 | $0.32 |
| Bread | $1.02 | $1.20 | $1.24 | $1.10 |
| Apples (10.5 oz) | $1.37 | $1.94 | $0.85 | $1.74 |
| A potato (7 oz) | $0.54 | $0.90 | $0.39 | $0.74 |
| A head of lettuce | $0.39 | $0.66 | $0.60 | $0.53 |
How much does transportation cost in California?
California stretches from the Mexican border along the Pacific coast for nearly 900 miles. But whether you're traveling between destinations across the state or even within the same city, travel costs can be significant.
MIT's Living Wage Calculator should help you to gauge an idea of the costs you might face:
| Scenario | Annual transportation expenditure |
|---|---|
| One adult, no children | $5,316 |
| One adult, one child | $9,561 |
| One adult, two children | $11,691 |
| Two adults (one working), no children | $9,561 |
| Two adults (one working), one child | $11,691 |
| Two adults (one working), two children | $14,058 |
| Two adults (two working), no children | $9,561 |
| Two adults (two working), one child | $11,691 |
| Two adults (two working), two children | $14,058 |
How much does healthcare cost in California?
Healthcare costs in California will vary depending on the type of health insurance you have and what your plan covers, your exact location, your age, and the state of your health. MIT estimates:
| Scenario | Annual healthcare expenditure |
|---|---|
| One adult, no children | $3,136 |
| One adult, one child | $9,476 |
| One adult, two children | $9,486 |
| Two adults (one working), no children | $7,018 |
| Two adults (one working), one child | $9,486 |
| Two adults (one working), two children | $9,411 |
| Two adults (two working), no children | $7,018 |
| Two adults (two working), one child | $9,486 |
| Two adults (two working), two children | $9,411 |
Check out the average cost of health insurance in the US here.
How much does childcare cost in California?
By 2025, California plans to introduce a free Universal Preschool program for all four-year-olds, considerably reducing childcare costs for local parents.
In the meantime, MIT estimates the following costs:
| Scenario | Annual childcare expenditure |
|---|---|
| One adult, no children | $0 |
| One adult, one child | $12,346 |
| One adult, two children | $24,691 |
| Two adults (one working), no children | $37,037 |
| Two adults (one working), one child | $0 |
| Two adults (one working), two children | $0 |
| Two adults (two working), no children | $0 |
| Two adults (two working), one child | $12,346 |
| Two adults (two working), two children | $24,692 |
| Two adults (two working), three children | $37,037 |
How much will I pay in tax in California?
Every taxpayer in the country must abide by tax laws unique to their state and federal tax laws that apply across the US. There are seven different federal income tax brackets in 2023.
California then charges state income tax from 1 percent to 12.3 percent according to nine income brackets:
1. A single person OR a married person/registered domestic partner filing separately
| Income | State income tax amount |
|---|---|
| $0–$10,999 | one percent of your income |
| $11,000–$23,942 | $100.99, and two percent over $10,099 |
| $23,943–$37,788 | $377.85, and four percent over $23,942 |
| $37,789–$52,455 | $931.69, and six percent over $37,788 |
| $52,456–$66,295 | $1,811.71, and eight percent over $52,455 |
| $66,296–$338,639 | $2,918, and 9.3 percent over $66,295 |
| $338,640–$406,364 | $28,246.90, and 10.3 percent over $338,639 |
| $406,365–$677,275 | $35,228.58, and 11.3 percent over $406,364 |
| $677,276 upwards | $65,835.52, and 12.3 percent over $677,275 |
2. A married person/registered domestic partner filing jointly OR a qualifying widower
| Income | State income tax amount |
|---|---|
| $0–$20,198 | one percent of your income |
| $20,199–$47,884 | $201.98, and two percent over $20,198 |
| $47,885–$75,576 | $755.70, and four percent over $47,884 |
| $75,577–$104,910 | $1,862.38, and six percent over $75,576 |
| $104,911–$132,590 | $3,623.42, and eight percent over $104,910 |
| $132,591–$677,278 | $5,837.82, and 9.3 percent over $132,1590 |
| $677,279–$812,728 | $56,493.80, and 10.3 percent over $677,278 |
| $812,729–$1,354,550 | $70,445.15, and 11.3 percent over $812,728 |
| $1,354,551 upwards | $131,671.04, and 12.3 percent over $1,354,550 |
3. A head of household
| Income | State income tax amount |
|---|---|
| $0–$20,212 | one percent of your income |
| $20,213–$47,887 | $202.12, and two percent over $20,212 |
| $47,888–$61,730 | $755.62, and four percent over $47,887 |
| $61,731–$76,397 | $1,309.34, and six percent over $61,730 |
| $76,398–$90,240 | $2,189.36, and eight percent over $76,397 |
| $90,241–$460,547 | $3,296.80, and 9.3 percent over $90,240 |
| $460,548–$552,658 | $37,735.35, and 10.3 percent over $460,547 |
| $552,659–$921,095 | $47,222.78, and 11.3 percent over $552,658 |
| $921,096 upwards | $88,856.16, and 12.3 percent over $921,095 |
On top of this, the statewide sales tax in California ranges between 7.25 percent to 10.25 percent, with district sales taxes ranging from 0.1 percent to one percent.
Tax considerations will be an essential factor as you assess the cost of living in California and its possible suitability for you, as the Golden State has some of the highest tax rates in America.
You could also check out the complete guide to taxes in California here.
How much money do you need to live comfortably in California?
Having gathered the numbers, only you can truly tell yourself whether you could live comfortably in California according to your circ*mstances and living expectations.
Get expert financial advice and learn more about the cost of living and how to manage it with an SEC-regulated advisor. Let Unbiased match you with the best financial advisor for your needs.
Senior Content Writer
Rachel Carey
Rachel is a Senior Content Writer at Unbiased. She has nearly a decade of experience writing and producing content across a range of different sectors.
