California cost of living
West region · BEA Regional Price Parities 2022 · Census ACS 2023
California has an overall price level of 112.5 on the BEA Regional Price Parity scale (US average = 100), or +12.5% versus the country — well above the national price level. That makes it the #2 of 51 state by price (1 = most expensive). Its median household income is $95,521 (ranked #6) and median gross rent is $2,104/month. To match a typical US $60,000 standard of living here you'd need roughly $67,500.
Source: BEA Regional Price Parities (RPP), all items. Data as of June 2026.
California cost-of-living indicators
| Indicator | California |
|---|---|
| Price level (BEA RPP, all items, US = 100) | 112.5 (+12.5%) |
| Price-level rank (1 = most expensive of 51) | #2 |
| Median household income (ACS 2023) | $95,521 |
| Income rank (1 = highest of 51) | #6 |
| Median gross rent (ACS 2023, per month) | $2,104 |
Source: BEA Regional Price Parities (RPP), all items; U.S. Census Bureau, ACS median household income; U.S. Census Bureau, ACS median gross rent (Table B25064). Data as of June 2026.
Sources: BEA RPP 2022 · Census ACS income 2023 · Census ACS rent 2023. Estimate — verify with the primary source.
What the price level means
The Regional Price Parity is a single index of how expensive everything — housing, goods, services and rents — is in California relative to the nation. At 112.5, prices here are about 12.5% higher than the US average. Housing typically drives most of the gap between states — California's median rent of $2,104/month is one signal of that. RPP is a 2022 estimate and updates roughly once a year; treat it as a guide to relative prices, not a precise current figure.
Salary needed to keep your standard of living in California
Because California's price level is 112.5 (US = 100), a salary worth $1,000 of buying power at the US average is worth about $1125 of spending here. A few worked examples (price level only — these ignore taxes and your actual job market):
| US-average salary | Equivalent budget in California |
|---|---|
| $50,000 | $56,250 |
| $75,000 | $84,375 |
| $100,000 | $112,500 |
| $150,000 | $168,750 |
Moving from a specific state? The cost-of-living calculator converts your own salary between any two states. For example, $80,000 in District of Columbia is worth about $79,787 in California.
States with a similar cost of living to California
The five states closest to California on the price-level scale:
| State | RPP (US=100) | vs US | Median income | Median rent |
|---|---|---|---|---|
| California (this state) | 112.5 | +12.5% | $95,521 | $2,104 |
| District of Columbia | 112.8 | +12.8% | $108,210 | $1,931 |
| Hawaii | 110.8 | +10.8% | $95,322 | $1,942 |
| Washington | 109.8 | +9.8% | $94,605 | $1,824 |
| Massachusetts | 109.4 | +9.4% | $99,858 | $1,848 |
| New Jersey | 108.8 | +8.8% | $99,781 | $1,800 |
Frequently asked questions
Is California an expensive state to live in?
California's overall price level is 112.5 on the BEA Regional Price Parity scale where the US average is 100, which is +12.5% versus the country as a whole — well above the national price level. It ranks #2 of 51 states (and DC) from most to least expensive. This is an estimate of overall prices; verify with the BEA before relying on it.
What salary do you need to live in California?
As a rule of thumb, to match a US-average $60,000 standard of living you would need about $67,500 in California, because its price level is 112.5 (US = 100). The state's own median household income is $95,521 (ACS 2023). Use the cost-of-living calculator to convert your specific salary between states. This is an estimate, not advice.
What is the median rent in California?
The median gross rent in California is $2,104 per month (US Census Bureau ACS 2023, Table B25064). Gross rent includes utilities. Actual rents vary widely by city and unit size.
How does California's cost of living compare to other states?
California is closest in overall price level to District of Columbia, Hawaii, Washington. The most similar-cost states make natural comparisons if you are weighing a move. See the side-by-side comparison and rankings pages for details.
Keep exploring
Sources & accuracy
Price level: BEA Regional Price Parities (RPP), all items (2022). Income and rent: U.S. Census Bureau ACS (2023). All public domain. The "salary needed" numbers are computed from the RPP ratio (see methodology) and are estimates of price level only — they do not account for state income tax, your specific salary market or personal spending. Verify with the primary sources before making a financial decision.
Last updated: 2026-06-18