| Index | California | Maryland | National |
| Cost of living | 125 | 121 | 100 |
| Groceries | 106 | 105 | 100 |
| Health care | 112 | 109 | 100 |
| Housing | 161 | 151 | 100 |
| Transportation | 112 | 109 | 100 |
| Utilities | 112 | 108 | 100 |
| Lifestyle & Entertainment | 113 | 109 | 100 |
| Household Items | 104 | 105 | 100 |
| Education & Childcare | 114 | 112 | 100 |
Understanding the cost of living in California can help future residents assess whether their current financial situation aligns with the expenses they will encounter. It enables them to plan for potential changes in their budget and lifestyle. The California cost of living index is 125, which is 25% higher than the national average. The cost of living index is calculated by taking into account multiple categories, which encompass both the cost of everyday expenditures and larger expenses as well.
If you prioritize affordability when seeking a new place to live, California may not be your ideal choice, as it ranks among the most expensive locations in the entire United States. A very small amount of areas exhibit a cost of living at least 20% higher than the national average, and unfortunately, California falls into this category, which may not align with your preferences for a budget-friendly living environment.
Housing costs make up a big chunk of the cost of living in California, and they usually eat into a large part of your take-home pay. Unfortunately, in this area, both buying a home and renting one costs 61% more than the average city. This includes stuff like home prices, rent, mortgage rates, and insurance.
Is California affordable? It's a key consideration when pondering a move, as affordability often shapes your choices. The cost of living index (we discussed it earlier), coupled with housing costs and income levels, serves as the cornerstone for determining a location's affordability. Take California, for instance, where the median home price falls 58.2% higher than the national average, and monthly rent rates are 67.5% higher than usual. Additionally, median income levels contribute to the equation, with California flaunting a median household income of $145,290, 78.6% higher than the national norm.
Utilities: Similar to the prices of any goods or services, utility expenses can fluctuate widely, contingent on variables such as climate, available energy sources, geographical location and state regulations. Costs associated with electricity, water, heating, and waste disposal can differ in magnitude, depending on the specific city or state. In California, the utilities index registers at 11.7% higher than the national average.
Taxes: Areas with higher taxes, including sales taxes and income taxes, can contribute to a higher cost of living. Paying more tax for everyday household expenses like clothing and food will result in higher costs, as will paying a higher rate of income tax. The general sales tax rate in California starts at 6% and the income tax rates start at 2%.
Groceries: Grocery prices have seen substantial hikes in the last 2-3 years, with some markets witnessing food cost increases of over 20% during this period. Conversely, certain markets have experienced only moderate upticks. These variations in food expenses can have a substantial impact on the overall cost of living in any locality. In California, the groceries index is 6.4% higher than the national average.
The California cost of living data displayed above uses a U.S. average baseline of 100 to provide a practical way to compare living expenses across cities. Housing estimates incorporate U.S. Census home price and rental data, while all other values are generated using AI-assisted models based on everyday expense expectations, regional pricing trends, climate, transportation patterns, and local economic conditions. These values are designed for directional city-to-city comparisons.
| Cost of living index | |
| Groceries index | |
| Health care index | |
| Housing index | |
| Transportation index | |
| Utilities index | |
| Lifestyle index | |
| Household index | |
| Educare index |
| Median Income | Per Year | Per Month | Max Budget (28% DTI) | Max Budget (36% DTI) |
| Owners | $174,362 | $14,530 | $4,068 | $5,231 |
| Renters | $106,428 | $8,869 | $2,483 | $3,193 |
| State | General Sales Tax | With Max Surtax |
| Maryland | 6% | 6% |
| State | Income Tax (Low) | Income Tax (High) |
| Maryland | 2% | 5.75% |
| City | Population | Cost of Living Index | National Avg. |
| Taylors Island, MD | 85 | 110 | 10.1% |
| Lexington Park, MD | 13,260 | 113 | 12.9% |
| Benedict, MD | 188 | 117 | 16.8% |
| Chesapeake Ranch Estates, MD | 9,937 | 119 | 19.1% |
| Lusby, MD | 2,264 | 119 | 19.3% |
| California, MD | 15,094 | 125 | 25.3% |
| City | Population | Cost of Living Index | National Avg. |
| Fort Leonard Wood, MO | 15,080 | 107 | 7.0% |
| Ferndale, WA | 15,070 | 127 | 26.5% |
| Callaway, FL | 15,068 | 99 | 0.7% |
| Spring Creek, NV | 15,068 | 114 | 14.2% |
| Bluffdale, UT | 15,121 | 141 | 41.2% |
| California, MD | 15,094 | 125 | 25.3% |
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