Monterey cost of living index

In the event that the cost of living data was unavailable for this city, estimates based upon nearby cities were used. Each cost of living index is based on a national average of 100. If the amount is below 100, it is lower than the national average. If the amount is above 100, it is higher than the national average.
IndexMontereyCaliforniaNational
Cost of living index163135100
IndexMontereyCaliforniaNational
Goods & Services index104107100
Groceries index110117100
Health care index103109100
Housing index292189100
Transportation index114125100
Utilities index113116100
An overview of the general cost of living index for Monterey, CA is displayed above for your reference. Residents in Monterey, CA enjoy a cost of living index of 163. This index is 20% higher than the California average, and 63% higher than the national average. The following categories are used when determining the cost of living index for any given city: health care (5%), transportation (9%), utilities (10%), groceries (13%), housing (30%), and goods/services (33%). Clearly, housing and goods/services make up the majority of the formula for calculating the cost of living index. Because of this, the general cost of living for any given area can be estimated by looking at the cost of everyday goods in that area. For those living in Monterey, CA, the average cost of goods and services is 2% lower than it is in California, and it is 4% higher than the national average.

Did you know?

  • The cost of living in Monterey is 20% higher than the California average.
  • The cost of living in Monterey is 63% higher than the national average.
  • The cost of housing in Monterey is 192% higher than the national average.
  • California general sales tax is 47% higher than the national average.
  • California state income tax is 55% lower than the national average.

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Compare Monterey, CA Cost of living To Other Cities

Salary Calculator

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Health care index
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Use the salary calculator to compare your current salary in Monterey, CA to any other city. The salary calculator will tell you how much you would need to earn in any given city to maintain the same standard of living based on the cost of living in each city. For example, if the cost of living in the city you are looking to relocate to is higher than the cost of living in Monterey, CA, then you would need to earn more income in order to maintain the same standard of living. To use the Monterey, CA salary calculator, simply enter in the name of the new city, then adjust the slider to your current income. The salary calculator will do the rest and let you know if you need to earn more or less in the new city. You will also see a complete breakdown of the cost of living.

Median Income & Debt-To-Income Ratio

Median IncomePer YearPer MonthMax Budget (28% DTI)Max Budget (36% DTI)
Owners$87,172$7,264$2,034$2,615
Renters$56,405$4,700$1,316$1,692
A good way to judge both the affordability of the housing and the cost of living is by simply calculating the maximum that a person should spend on housing in Monterey, CA, otherwise known as the debt-to-income ratio (DTI). The safest way to live in the city is to avoid spending more than 28 percent of the gross income that one earns on costs that pertain to housing and no more than 36 percent on all expenses and debts. Monterey, CA has a median income of about $87,172 for people who own homes. Based on that number, a person should spend a maximum of $2,034 on expenses related to housing. Renters have a slightly different median income, which is $56,405. Based on this average, renters should spend no more than $1,316 on all of their rental costs if they want to maintain a non-impoverished standard of living.

California Sales Tax

StateGeneral Sales TaxWith Max Surtax
California7.5%10%

California Income Tax

StateIncome Tax (Low)Income Tax (High)
California1%12.3%
When assessing the complete cost of living in Monterey, CA, the California income tax and the California sales tax percentages should unquestionably be taken into consideration. Sales taxes aren't just levies imposed onto sold goods, but they also include taxes that are charged when services are provided for a fee. The rates are different from state to state and can run has high as 7 percent. Some states have no sales tax at all. The California maximum surtax is 10%, and the California sales tax is 7.5%. By contrast, income tax is an unfortunate obligation that is charged by the government against earnings. Just like sales taxes, the rates for income taxes differ from state to state. They also decrease or increase according to the individual's tax bracket. Tax rates can run as high as 9 percent, with a minimum of zero. Income tax rates range from 1% to 12.3% in California.

Goods & Services

ItemMontereyNational avg.Difference
Haircut $16.49$14.5913.0%
Beauty Salon $43.50$34.6825.4%
Toothpaste $2.39$2.473.4%
Shampoo $1.39$1.0236.0%
Movie $10.25$9.873.9%
Bowling $4.00$4.398.9%

Groceries

ItemMontereyNational avg.Difference
Ground Beef $5.15$4.4815.0%
Fried Chicken $1.61$1.4610.0%
Milk $2.76$2.3617.1%
Potatoes $3.19$3.064.2%
Pizza $13.17$9.2442.5%
Beer $8.99$8.634.1%

Health Care

ItemMontereyNational avg.Difference
Optometrist $134.00$99.7834.3%
Doctor $91.50$105.0312.9%
Dentist $92.00$88.703.7%
Ibuprofen $10.75$9.4114.2%
Lipitor $316.62$298.506.1%

Housing

ItemMontereyNational avg.Difference
Home Price $615,900.00$175,700.00250.5%
Avg. Mortgage Payment $1,906.33$1,081.0376.3%
Apartment Rent $1,423.00$920.0054.7%

Transportation

ItemMontereyNational avg.Difference
Gasoline $2.53$2.0921.1%
Tire Balancing $43.33$45.294.3%

Utilities

ItemMontereyNational avg.Difference
All Electricity$231.09$170.8035.3%
Phone $22.99$28.2618.6%
Although the cost of living data is updated regularly, this cost of living information is to be used as estimates only as prices can change on an ongoing basis.

Nearby cities with low cost of living

City, StatePopulationCost of Living IndexNational Avg.
Boronda, CA1,2781055%
Castroville, CA6,22611515%
Salinas, CA154,07711818%
Moss Landing, CA20012424%
Marina, CA20,19813030%
Monterey, CA28,05316363%

Cities with similar population

City, StatePopulationCost of Living IndexNational Avg.
Savage, MN28,05511313%
Round Lake Beach, IL28,048100-0%
Shaker Heights, OH28,0711088%
Oak Forest, IL28,1041022%
Winchester, NV28,11197-3%
Monterey, CA28,05316363%
Source: The Monterey, CA cost of living data displayed above is derived from the Council for Community and Economic Research (C2ER) for the fourth quarter of 2015.