What Is the Cost of Living in California?

There’s no standard cost of living in California; it’s a large state, home to some of America’s richest and poorest cities and counties. Still, there are some things that apply to locations across the state, such as its high income tax. Here are some of the cost of living ranges you’re likely to experience across the Golden State.

If you’re looking to rent or buy in California, a financial advisor could help you put a financial plan together for your needs and goals.

Housing Costs in California

For most people, the largest portion of their budget is housing. Needless to say, there’s a huge spectrum of housing costs in California, from the ultra-expensive San Francisco to smaller cities. According to Realtor.com, the median home value in San Francisco was between $1.3 million and $1.5 million in January 2026, whereas Sacramento boasts home values in the $485,000 to $515,000 range.

Recent data from Zillow shows that the average rent in California is $2,700. ¹ Comparatively, the average rent in the U.S. is $1,995. Most cities in California come out above that mark. Apartments.com’s data indicates that the median two-bedroom rent in Los Angeles ranges from $2,900 to $3,000, while San Diego comes in at around $3,000 to $3,500 a month. No matter where you live in California, you might pay more than you would in other states.

Utilities

Californians pay relatively low utility bills. According to data from the Save on Energy Electricity Bill Report, Californians consume an average of 503 kWh per month (down from 542 kWh in January 2024). ² They pay an average of33.60 cents/kWh (up from 24.46 cents/kWh), resulting in an average monthly electricity bill of $169.01 (up from $132.57).

For reference, the state with the most expensive average monthly bill is Maryland ($207.17 in January 2026) and the cheapest is Utah ($105.96 in January 2026). The average for the U.S. as a whole is $155.17 (up from $138.57 in March 2023).

Food

According to the MIT Living Wage Calculator, an adult with no children in California requires a living wage of $59,737 before taxes in 2026 to make a living wage. Of that annual income, food expenses account for $4,566, or 7.6%. This is a simple living wage calculation, though, so it doesn’t allow for luxuries.

Of course, food expenses vary within California. Based on 2026 data from Numbeo.com, the average cost of a gallon of milk and a dozen eggs in Los Angeles is $1.35 and $7.49, respectively. ³ For reference, the national average price for a gallon of milk and a dozen eggs is $1.06 and $4.40, respectively.

Transportation

California is known for its beautiful stretches of highway and its traffic. According to GasBuddy, a gallon of regular gas in Los Angeles, California ranged between $3.39 and $3.45 per gallon.

If you’re looking to own and drive a car in California, you’ll need insurance. Insure.com’s report on car insurance rates from January 2026 shows that California’s average annual cost per year comes in a $3,010. ⁴ This is more than the national average of approximately $2,300.

There are public transportation options in California, but the cost varies from place to place. For example, a monthly transit pass in LA will cost you $72 a month for unlimited use. A monthly pass for San Francisco-area transit costs $86, or $104 for access to the San Francisco municipal transit plus the Bay Area Rapid Transit (BART).

Taxes

California holds the honor of some of the highest income taxes in America. Its top state income tax bracket comes with a 12.3% rate. It’s a progressive tax system, though. Residents in the bottom bracket pay just 1% in state income taxes. If your taxable income is over $1 million, you’ll pay a 1% mental health services surtax on top of the 12.3% rate, bringing the total to 13.3%.

California also has the highest base rate for state sales tax, at 7.25%. Counties and cities can add sales taxes of their own, which is why some cities in Los Angeles have sales tax rates of 9.5%.

Here’s some good news for the tax-averse: California’s property tax rates are below average. The state has an average effective property tax rate of 0.71%, compared to the national average of 0.99%. This is largely because of California’s Proposition 13, a state law that reduced property taxes by more than 50% and capped annual increases in assessed home values.

Miscellaneous Cost of Living Facts

Moving to California is a dream for many. There’s no place quite like the Golden State. Wine lovers could look into Napa. Art fans can check out the Getty, the Los Angeles County Museum of Art (LACMA), the De Young in San Francisco or any number of other museums and galleries.

California also features a number of places where you can surf, hike and road trip your way through some of the country’s most beautiful terrain. There’s also a lot to love if you’re a sports fan – the Los Angeles Dodgers and Golden State Warriors have been contenders for the last few years, and the state also boasts multiple teams in the NFL and NHL.

Bottom Line

California’s cost of living varies widely by region, but higher housing prices and taxes tend to shape budgets across the state. While utilities and property taxes may be comparatively moderate, expenses such as rent, transportation and everyday goods can add up quickly, especially in major metropolitan areas. The key to living comfortably in the Golden State is understanding how these costs align with your income and lifestyle expectations. Careful budgeting and long-term financial planning can make a significant difference, whether you’re relocating for work, lifestyle or opportunity.

Next Steps If You’re Moving to the Golden State

• A financial advisor can help you navigate big life changes like a move, or offer assistance with identifying and meeting your financial goals in general. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
• Check out some of the top financial advisor firms in Los Angeles, Sacramento, San Diego and San Jose.
• If you make the move to California, it might be worth moving your savings to a local, in-state bank. Some options include Poppy Bank, Pacific Premier Bank, Beneficial State Bank, Preferred Bank and Bank of Hope.

Photo credit: ©iStock.com/Jeremiah Pierucci, ©iStock.com/Long_Strange_Trip_01, ©iStock.com/Larry Gibson