Cost of Living for California (2026)
California (CA) Key Facts
Cost of Living Index
142
National Average Index
100
Median Household Income
$85,000
Approximate Median Rent (1 B R)
$1,800/month
State Income Tax Rate
13.3%
How This Calculator Works in California
This cost of living calculator helps you compare salaries between California and other states or cities by adjusting for purchasing power differences. Enter a salary and a target location to see what equivalent income you would need. It uses California's cost of living index of 142 relative to the national average of 100 to provide an accurate comparison.
California Overview
California has a cost of living index of 142, where 100 represents the national average. Housing is the primary cost-of-living driver in California, running 50% or more above the national average in major metros like San Francisco, Los Angeles, and San Jose. The median household income is $85,000, which has a purchasing power equivalent of approximately $59,859 in an average-cost location.
How California Compares
California's cost of living index of 142 compares to Oregon's 113 and Nevada's 104. Residents in California generally need higher incomes to maintain the same standard of living as those in more affordable states. The most affordable states like Mississippi (84) cost roughly 69% less than California, while the most expensive like Hawaii (192) cost 35% more.
| State | Top Rate | Notes |
|---|---|---|
| Oregon | COL Index: 113 | Oregon has a cost of living index of 113 and a median household income of $70,000. It is more affordable than California. |
| Nevada | COL Index: 104 | Nevada has a cost of living index of 104 and a median household income of $65,000. It is more affordable than California. |
| Arizona | COL Index: 103 | Arizona has a cost of living index of 103 and a median household income of $65,000. It is more affordable than California. |
The national average cost of living index is 100. California's index of 142 is above the national average. States like Mississippi (84) and West Virginia (84) have the lowest cost of living, while Hawaii (192) and DC (148) have the highest. California's median household income of $85,000 should be evaluated alongside its cost of living to understand real purchasing power.
Tips for California Residents
- 1Housing is the primary cost-of-living driver in California, running 50% or more above the national average in major metros like San Francisco, Los Angeles, and San Jose.
- 2California's median household income of $85,000 has a real purchasing power of about $59,859 when adjusted to the national average. Compare this figure, not the raw salary, when evaluating cross-state moves or job offers.
- 3California's top state income tax rate of 13.3% further reduces purchasing power beyond what the cost of living index alone shows. Factor in taxes when making state-to-state comparisons.
- 4When comparing job offers between states, adjust salaries by the cost of living index. A $60,000 salary in a state with an index of 90 provides more purchasing power than $70,000 in a state with an index above 105.
- 5Look beyond the state average — costs can vary dramatically within California between metro areas, suburbs, and rural communities. Research the specific city or county where you would live.