How expensive is Los Gatos?
Very, mainly because of housing. Zillow's typical Los Gatos home value was $2,597,611 in September 2026, nearly twice San Jose's $1,353,869, and Zillow's observed rent was $4,004 a month. The Census puts the town's median household income at $217,554 for 2020-2024, up from $155,863 in 2015-2019, and the median gross rent at $3,247. Outside housing, Los Gatos shares Santa Clara County's costs for food, care and transport, which MIT's Living Wage Calculator prices below.
The rest of this page breaks those costs down: housing first, then everyday bills, taxes, the salary you need and how Los Gatos compares with its neighbors.
Housing costs in Los Gatos
Buying a home in Los Gatos
Redfin's median sale price was $2,438,839 in the three months to September 2026. With 20% down, the $1,951,071 loan at Freddie Mac's 30-year average of 7.24% (week of October 29, 2026) costs about $13,297 a month in principal and interest. Zillow's typical value has risen 24.9% in five years and 91.4% in ten. By ZIP, Zillow's typical value is $3,515,016 in 95030 and $2,530,345 in 95032. The cheapest way in is a condo: Redfin's three-month condo median in 95032 was $599,982. See our Los Gatos condos guide.
Renting in Los Gatos
Zillow's observed rent for Los Gatos was $4,004 a month in September 2026, up 7.9% in a year and 31.3% in five years. That is $48,048 a year. The Census median gross rent, which includes long-standing leases and utilities paid by the tenant, was $3,247 in 2020-2024. About 35.1% of occupied homes in town are rented.
Property tax on a Los Gatos home
California's base rate is 1% of your purchase price, plus voter-approved bonds. Our Santa Clara County property tax guide lists the main Los Gatos tax rate area at 1.142% for 2025-26. On Zillow's typical value of $2,597,611, that is about $29,665 a year, or $2,472 a month. Add school parcel taxes: the high school district's Measure A is $128 a year, and the elementary district levies its own. Prop 13 then limits increases in your assessed value to 2% a year while you own; see our property tax guide.
Homeowners insurance in the hills
Southern Los Gatos is in a Very High Fire Hazard Severity Zone on the map the Town adopted by ordinance in June 2025. Ask several insurers for quotes, because some carriers limit new policies in high-risk areas and some owners end up on the FAIR Plan. Get quotes during escrow, and read our homeowners insurance guide and FAIR Plan guide.
HOA dues and special taxes
Whether a house is in an HOA shows up in the title report and disclosures. Condos and townhomes always have one: a 2024-built Bellaterra @ North 40 condo listed dues of $450 a month when it sold in March 2025. Check the tax bill for special assessments and any Mello-Roos district; our Mello-Roos guide explains how to spot them.
Mountain homes with a Los Gatos address
Homes in ZIP 95033, in the mountains above town, sold for a Redfin median of $1,609,527 in the three months to September 2026, far below the town figure. Many sit outside the Town limits and can carry extra costs: well and septic upkeep, private road agreements and higher fire insurance. Budget for these before you compare prices. Redfin showed 6.6 months of supply there, so buyers have time to inspect.
Owner costs from the Census
The Census reports median monthly owner costs above $4,000 for Los Gatos homes with a mortgage, the top of its range, and $1,501 for homes without one. The gap reflects the many long-time owners: 64.9% of homes are owner-occupied, and 85.0% of residents lived in the same home a year earlier.
Everyday costs in Los Gatos
MIT's Living Wage Calculator prices basic needs at the county level, so these figures cover all of Santa Clara County. They are annual costs for a minimal budget, updated February 15, 2026.
Utilities: who provides what
The Town lists PG&E for gas and electric delivery, Silicon Valley Clean Energy for electricity generation, San Jose Water for water, West Valley Sanitation District for sewer and West Valley Collection & Recycling for trash. Ask the seller for 12 months of bills, since use varies with lot size and household.
Food and groceries
MIT puts food at $5,036 a year for one adult and $14,738 for two working adults with two children in the county.
Transportation
MIT estimates $10,808 a year for one adult and $18,129 for two working adults with two children. Most Los Gatos workers drive: the Census says 61.6% commute by car, 33.0% work from home and 1.4% use public transport. The mean commute is 27.6 minutes. VTA Route 27 runs through town along Santa Cruz Avenue, Main Street and Los Gatos Boulevard.
Healthcare
MIT's medical cost estimate is $3,651 a year for one adult and $13,039 for two working adults with two children, covering premiums and out-of-pocket costs.
Childcare
Childcare is the largest item for many households: MIT puts it at $22,266 a year for one child and $46,772 for two in Santa Clara County. Transitional kindergarten in the Los Gatos Union School District is free and open to every child who turns four by September 1.
Internet and phone
MIT estimates $1,882 a year for one adult and $2,504 for a two-adult household. The Town lists Frontier for landline phone service; check which internet providers serve your street before you buy, especially in the hills.
Taxes in Los Gatos
The sales tax rate in Los Gatos is 9.875% as of October 1, 2026, according to the California Department of Tax and Fee Administration. That is above the 9.75% in Saratoga, Cupertino and Monte Sereno, and below San Jose at 10.0% and Campbell at 10.5%. California's state income tax applies as everywhere in the state. Property tax is covered above. When you sell, Santa Clara County charges documentary transfer tax; see our transfer tax guide.
Salary needed to live in Los Gatos
MIT's living wage is the pre-tax income a household needs for basic needs in Santa Clara County, with no savings and no home purchase. It is a floor, not a comfortable budget, and Los Gatos rents run above the county's.
| Household | Living wage per hour | Required income before tax |
|---|---|---|
| 1 adult, no children | $38.00 | $79,043 |
| 1 adult, 1 child | $69.42 | $144,399 |
| 2 adults (both working), no children | $23.93 each | $99,540 |
| 2 adults (both working), 2 children | $48.41 each | $201,397 |
To buy, the math is harsher. The $13,297 monthly payment on a median Los Gatos home, plus about $2,321 in property tax at 1.142%, comes to about $15,618 a month before insurance. If you keep housing at a third of gross income, that takes about $562,200 a year. The Census median household income in Los Gatos is $217,554, which is why so many buyers bring equity from a previous home.
Los Gatos vs nearby cities
| City | Zillow typical home value (Sept 2026) | Zillow observed rent (Sept 2026) | Census median household income (2020-2024) | Sales tax (Oct 2026) |
|---|---|---|---|---|
| Los Gatos | $2,597,611 | $4,004 | $217,554 | 9.875% |
| Saratoga | $3,974,406 | $6,140 | $250,001 or more | 9.75% |
| Cupertino | $2,957,922 | $4,307 | $234,707 | 9.75% |
| San Jose | $1,353,869 | $3,582 | $146,427 | 10.0% |
Los Gatos sits between San Jose and its western neighbors. Zillow's typical value rose 4.6% in Los Gatos over the year to September 2026, against 4.2% in Saratoga, 2.9% in Cupertino and a 0.5% fall in San Jose. For Saratoga, the Census reports income only as $250,001 or more, the top of its range. See our guides to Saratoga, Cupertino's cost of living and San Jose's cost of living.
Ways to lower the cost of living in Los Gatos
- Buy attached: a 95032 condo at Redfin's $599,982 median costs about a quarter of the town median.
- Compare the two ZIPs: Zillow's 95032 typical value is about $985,000 below 95030's.
- Claim exemptions: file the homeowners' exemption with the county assessor, and if you are 65 or older or receive SSI or SSDI for a disability, apply for the school parcel tax exemptions by June 15 for the high school district.
- Shop insurance early: quotes vary in fire zones; ask insurers which home-hardening steps they credit.
- Use the free programs: the Town points to free wildfire home inspections and brush chipping from County Fire, and transitional kindergarten is free.
- Check Prop 19: owners 55 and older moving within California may be able to carry their tax base; see our Prop 19 guide.
For the wider picture, read is Los Gatos a good place to live and our California cost of living guide.