How expensive is California?
California is one of the most expensive states to live in, and housing is the main reason. Redfin's statewide median sale price was $752,837 in September 2026, and Zillow's typical California home value was $761,538, up 0.6% from a year earlier. MIT's Living Wage Calculator estimates that one adult with no children needs $63,402 a year before tax to cover basic costs in California, or $30.48 an hour, against a state minimum wage of $16.90.
Costs swing widely inside the state. A county median sale price ranged from $329,262 in Tehama County to $1,727,384 in San Mateo County in September 2026, among counties with at least 50 sales. Where you live in California matters more than any single statewide average.
Housing costs: buying, renting and insuring
Buying a home: the monthly payment
Here is the math on a home at the statewide Redfin median of $752,837. With 20% down, the loan is $602,270. At the Freddie Mac 30-year average rate of 7.24% for the week of October 29, 2026, principal and interest come to about $4,104 a month. Property tax starts at the 1% base rate under Proposition 13, about $7,528 a year or $627 a month, before local voter-approved bonds and special assessments. Add homeowners insurance and any HOA dues.
Property tax under Proposition 13
Proposition 13 limits the base property tax rate to 1% plus the rate needed for local voter-approved bonds, and generally caps increases in a home's assessed value at 2% a year. A home is reassessed to market value when it changes ownership or after new construction, so long-time owners often pay far less than recent buyers. Owner-occupants can claim the homeowners' exemption, which takes $7,000 off the assessed value; at a 1% rate that is $70 a year. Our California property tax guide explains bills by county.
Renting: what tenants pay
The Census Bureau's 2020-2024 American Community Survey puts median gross rent (rent plus utilities) at $2,922 in San Mateo County, $1,954 in Los Angeles County, $1,790 in Sacramento County and $1,392 in Fresno County. Census figures cover all renters, including long-time tenants. Current asking rents run higher: Zillow's typical rent in September 2026 was $2,772 in Los Angeles, $3,582 in San Jose, $2,045 in Sacramento and $1,901 in Bakersfield.
Homeowners insurance
Insurance has become a real line in the budget. The latest regulator-sourced average, from the NAIC, was $1,492 a year for an HO-3 policy in California in 2022, and rates have risen since. In fire-prone areas, owners who cannot find a regular insurer use the FAIR Plan, whose dwelling rates rose an average of 29.1% from October 15, 2026. See our California homeowners insurance guide and FAIR Plan guide.
California taxes
State income tax brackets
California taxes income in nine brackets from 1% to 12.3%. These are the Franchise Tax Board's 2025 rate schedules for a single filer, based on taxable income:
| Taxable income (single) | Rate on income in this band |
|---|---|
| $0 to $11,079 | 1% |
| $11,079 to $26,264 | 2% |
| $26,264 to $41,452 | 4% |
| $41,452 to $57,542 | 6% |
| $57,542 to $72,724 | 8% |
| $72,724 to $371,479 | 9.3% |
| $371,479 to $445,771 | 10.3% |
| $445,771 to $742,953 | 11.3% |
| Over $742,953 | 12.3% |
Married couples filing jointly have brackets twice as wide; the 9.3% rate, for example, applies from $145,448 to $742,958. The FTB's own worked example: a couple with $125,000 of taxable income owes $3,974.82 plus 8% of the $9,916 above $115,084, or $4,768.
Sales tax
The statewide sales and use tax rate is 7.25%, according to the California Department of Tax and Fee Administration. Most cities and counties add district taxes of 0.10% to 2.00%, and some areas have more than one, so the rate at the register is often higher. Look up your address in CDTFA's rate table, which is effective October 1, 2026.
Everyday costs: gas, utilities, healthcare and childcare
Gasoline
California drivers pay well above the national average. The U.S. Energy Information Administration put California's average regular gasoline price at $5.888 a gallon for the week of October 26, 2026, against $4.269 for the U.S. as a whole. A driver using 50 gallons a month pays about $81 more than the national average: 50 x ($5.888 - $4.269) = $80.95.
Electricity and utilities
Electricity costs about 64% more than the U.S. average. EIA's preliminary August 2026 figures show California residential customers paying 29.75 cents per kilowatt-hour, against 18.16 cents nationally. At 500 kWh a month, that is about $149 in California versus about $91 at the national average. Rates differ by utility and by tiered or time-of-use plan, so check your utility's rate schedule for the address.
Healthcare
MIT's Living Wage Calculator, updated February 15, 2026, estimates annual medical costs in California of $3,432 for one adult with no children and $12,022 for two working adults with two children. Your employer's plan or a Covered California plan will set your real number.
Childcare
Childcare is the largest cost for many households with young children. Child Care Aware of America's 2024 price report puts the average price of center-based infant care in California at $22,628 a year, family child care for an infant at $19,022, and center care for an infant and a 4-year-old at $39,293, more than the $34,380 it lists for annual housing costs.
Food and transportation
MIT's estimates for California put annual food costs at $4,580 for one adult and $13,405 for two adults with two children, and transportation at $9,528 and $15,981.
Salary needed to live in California (MIT living wage)
MIT's Living Wage Calculator estimates the hourly wage each working adult needs to cover basic costs in California, before tax, with no savings or extras.
| Household | Living wage per hour | Poverty wage | Minimum wage |
|---|---|---|---|
| 1 adult, no children | $30.48 | $7.67 | $16.90 |
| 1 adult, 1 child | $53.54 | $10.40 | $16.90 |
| 2 adults (1 working), no children | $39.35 | $10.40 | $16.90 |
| 2 adults (both working), 2 children | $36.38 | $7.93 | $16.90 |
In annual terms, MIT puts the required income before tax at $63,402 for one adult with no children, including $23,383 for housing, and $151,355 for two working adults with two children, including $30,686 for childcare and $31,234 for housing. These are statewide figures. MIT also publishes figures for each county and metro area, so check the one where you plan to live.
Cost of living by county: comparison table
Housing costs by county, from Redfin's median sale price for September 2026 and Census Bureau median gross rent (ACS 2020-2024) and median household income (SAIPE 2024). Every county has a data page with monthly trends; see all 58 on the California market data page.
| County | Median sale price, Sept 2026 | Median gross rent | Median household income |
|---|---|---|---|
| San Mateo County | $1,727,384 | $2,922 | $158,569 |
| San Francisco County | $1,661,282 | $2,476 | $137,184 |
| Santa Clara County | $1,568,490 | $2,857 | $166,984 |
| Orange County | $1,207,298 | $2,434 | $114,858 |
| Alameda County | $1,059,130 | $2,357 | $128,031 |
| Los Angeles County | $912,957 | $1,954 | $90,757 |
| San Diego County | $912,957 | $2,246 | $108,754 |
| Ventura County | $873,795 | $2,317 | $112,872 |
| Riverside County | $598,660 | $1,901 | $92,611 |
| San Bernardino County | $548,772 | $1,801 | $87,665 |
| Sacramento County | $543,783 | $1,790 | $93,331 |
| Fresno County | $416,766 | $1,392 | $74,244 |
| Kern County | $399,107 | $1,300 | $71,295 |
| Shasta County | $377,405 | $1,317 | $70,620 |
Regional differences in cost of living
San Francisco Bay Area
The Bay Area has the state's highest home prices. Redfin's September 2026 median sale price was $1,727,384 in San Mateo County, $1,661,282 in San Francisco and $1,568,490 in Santa Clara County. Incomes are also the highest, with Santa Clara County's median household income at $166,984. Contra Costa County was lower, at $778,258.
Coastal Southern California
Orange County's median sale price was $1,207,298, while Los Angeles and San Diego counties both stood at $912,957. City-level costs vary widely; see the Los Angeles and Irvine cost of living guides.
Inland Empire
Riverside and San Bernardino counties cost far less than the coast, with medians of $598,660 and $548,772, and Census median rents of $1,901 and $1,801. See the Riverside cost of living guide.
Sacramento region
Sacramento County's median sale price was $543,783, and Placer County's was $688,459. The Sacramento cost of living guide and Roseville guide go deeper.
Central Valley
The San Joaquin Valley is among the lowest-cost regions: $416,766 in Fresno County, $399,107 in Kern County and $486,411 in Stanislaus County. Census median rents were $1,392 in Fresno County and $1,300 in Kern County.
Far north
Shasta County's median was $377,405 and Butte County's $409,085. For the full ranking of low-cost counties and cities, see the cheapest places to live in California.
What is driving California costs now
Home prices: flat but high
Prices have stopped climbing fast but have not fallen. Redfin's statewide median sale price was $752,837 in September 2026, against $745,745 in September 2025. About 22,295 homes sold statewide that month, the typical home took 41 days to sell, and homes sold for 100.2% of list price on average. With prices this steady, the mortgage rate and insurance deserve as much attention as the price. Follow the monthly numbers in our California housing market guide.
Insurance and energy
The two costs rising fastest for many owners are insurance and electricity. Homeowners premiums have risen with wildfire losses, and California's residential electricity price in August 2026 was well above the national average, as shown above. Neither shows up in a home's sale price, so ask a seller for recent utility bills and get an insurance quote before you make an offer.
Ways to lower the cost of living in California
Choose location by total cost, not price alone
A cheaper home can come with a longer drive, higher insurance or Mello-Roos special taxes. Add housing, insurance, taxes and commuting together before you compare places.
Cut insurance costs with wildfire upgrades
Under the Department of Insurance's Safer from Wildfires rules, steps such as a Class A roof, ember-resistant vents and a cleared 5-foot zone qualify for insurer discounts. Ask your insurer for its schedule.
Claim the homeowners' exemption
File once with your county assessor to take $7,000 off your assessed value if the home is your main residence.
Lower energy bills
Ask your utility about time-of-use plans and low-income programs, and compare your bill against the rate schedule.