F
32%
Overall NAT. AVG.
9%
Goods & Services NAT. AVG.
79%
Housing NAT. AVG.
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Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.
The cost of living index is based on a national average of 100. For example, if the cost of living is 90, then it is 10% lower than average. If the cost of living is 110, then it is 10% higher than average. The breakdown for each index is as follows: goods & services (33%), groceries (13%), health care (5%), housing (30%), transportation (9%) and utilities (10%). If the cost of living data was unavailable for this city, estimates based upon nearby cities were used.
Index Sacramento California National
Cost of living132140100
Goods & Services109111100
Groceries108112100
Health care113109100
Housing179196100
Transportation121126100
Utilities114127100

An Overview of Cost of Living in Sacramento, CA

Getting a feel for the cost of living in Sacramento is essential for anyone planning to relocate, as it empowers them to make informed financial decisions, secure a comfortable lifestyle and maintain financial stability in their new environment. The cost of living in Sacramento is 132, which is 32% higher than the national average. Relocating individuals may need to adjust their savings and investment strategies based on the cost of living in the new location. It influences decisions about retirement planning, investments and financial goals.

The cost of living in Sacramento is among the highest in the country, making it a very expensive place to live. Only a small fraction of regions boast a cost of living that is at least 20% higher than the national average, and regrettably, Sacramento falls into this category, which may not be suitable for those seeking an economically favorable living environment.

Housing costs are a very significant part of the Sacramento cost of living index and generally encompass a large percentage of take-home income. Unfortunately, in this area, the housing costs for both homes and rentals were 78.9% more than the average city. This includes things like home and rent prices, mortgage rates and insurance.

What Do Locals Say About the Cost of Living in Sacramento?

When it comes to knowing a city, its residents are the experts. We conducted a survey with 41 locals to understand their opinions on the cost of living in Sacramento. The results indicated that 37% found it reasonably priced with decreasing prices of goods and services, while 63% viewed it as quite expensive, with increasing prices.

Is Sacramento Affordable?

Is Sacramento an affordable place to live? It's a good question and one that you might want to ask when considering any new city, as affordability can play a huge role in the decision making process. The cost of living index (which we covered above), as well as housing costs and income levels play a vital role in determining the affordability of an area. The median home price in Sacramento is 95.6% higher than the national average, while the average monthly rent prices are 39.9% higher than average. The affordability of any location can also be influenced by median income levels. Sacramento has a median household income of $65,847, which is 19% higher than the national average.

What Factors can Influence the Cost of Living in Sacramento?

Subsidies: Certain regions may provide government subsidies or assistance initiatives designed to alleviate the cost of living burden on their residents. These programs encompass a wide range of support mechanisms, such as Medicare, Medicaid, housing subsidies, low-income home energy assistance programs, school lunch programs, supplemental nutrition assistance programs, student loans, electric vehicle tax credits, affordable care act subsidies and farming subsidies. Areas with fewer subsidy offerings might experience an elevation in their cost of living.

Utilities: Like everything else, utilities costs can range significantly depending on factors like climate, energy sources available, location and even state regulations. Things like electricity, water, heating and waste disposal costs can be higher or lower, depending on the city or state. The utilities index in Sacramento comes in at 14% higher than the national average.

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 Sacramento, the groceries index is 8.2% higher than the national average.

Where is the Data From?

The Sacramento cost of living data displayed above is derived from the C2ER cost of living index to provide a useful and reasonably accurate measure of living cost differences in urban areas. Published on a quarterly basis, it compiles data from more than 300 independent researchers, encompassing over 60 goods and services. These items have been meticulously selected to represent various consumer expenditure categories, in 6 categories. Weightings assigned to cost differentials draw from government survey data tracking spending patterns among professional and executive households. While the C2ER index excludes data on sales or income tax rates, AreaVibes incorporates tax rates into the overall cost of living score for each region.

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Cost Of Living Quick Facts

  • The cost of living in Sacramento is 6% lower than the California average
  • The cost of living in Sacramento is 32% higher than the national average
  • Sacramento housing is 79% higher than the national average
  • California general sales tax is 42% higher than the national average
  • California state income tax is 56% lower than the national average

Most Affordable Places to Live in and Around Sacramento

See all the best places to live around Sacramento

Compare Sacramento, CA Cost of Living

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      This is how much you would need to earn in
      Price difference in compared to
      Cost of living index
      Goods & Services index
      Groceries index
      Health care index
      Housing index
      Transportation index
      Utilities index

      Median Income & Debt-To-Income Ratio

      Median Income Per Year Per Month Max Budget (28% DTI) Max Budget (36% DTI)
      Owners$91,117$7,593$2,126$2,734
      Renters$47,524$3,960$1,109$1,426
      The affordability of the housing market in Sacramento, CA as well as the overall cost of living can be predicted by what percent of the monthly income is spent on housing related costs. This is konwn as the debt-to-income ratio (DTI). The overall rule of thumb is that no more than 28% of your gross income should be spent on the overall costs related to housing and no more than 36% of gross income on all expenses and debts. Among Sacramento homeowners, the median income is $91,117. This indicates that a monthly maximum of $2,126 should be spent by homeowners on all housing related costs. Renters have a median income of $47,524. This indicates that renters would have a maximum of $1,109 for their rent related monthly costs.

      California Sales Tax

      State General Sales Tax With Max Surtax
      California 7.25% 10.5%

      California Income Tax

      State Income Tax (Low) Income Tax (High)
      California 1% 12.3%

      Goods & Services

      Item Sacramento National avg. Difference
      Haircut $40.00$24.2664.9%
      Beauty Salon $60.53$45.5632.8%
      Toothpaste $3.67$3.701.0%
      Shampoo $1.44$1.2812.5%
      Movie $13.76$12.1313.4%
      Bowling $22.22$18.0023.5%

      Groceries

      Item Sacramento National avg. Difference
      Ground Beef $5.56$5.844.7%
      Fried Chicken $2.06$1.5731.0%
      Milk $4.93$4.675.5%
      Potatoes $4.69$4.935.0%
      Pizza $13.98$12.0915.7%
      Beer $10.49$10.410.8%

      Health Care

      Item Sacramento National avg. Difference
      Optometrist $153.50$125.6822.1%
      Doctor $201.43$135.7848.3%
      Dentist $115.72$113.292.1%
      Ibuprofen $11.03$10.653.5%
      Lipitor $380.45$468.6018.8%

      Housing

      Item Sacramento National avg. Difference
      Home Price $361,300.00$184,700.0095.6%
      Avg. Mortgage Payment $3,182.68$2,346.6935.6%
      Apartment Rent $1,328.00$949.0039.9%

      Transportation

      Item Sacramento National avg. Difference
      Gasoline $4.51$3.4630.2%
      Tire Balancing $58.67$59.922.1%

      Utilities

      Item Sacramento National avg. Difference
      All Electricity $238.53$193.9923.0%
      Phone $190.81$192.250.7%
      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 Population Cost of Living Index National Avg.
      Freeport, CA7011211.6%
      Hood, CA28911211.6%
      Clarksburg, CA36611211.6%
      Fruitridge Pocket, CA5,77111010.0%
      McClellan Park, CA84311514.7%
      Sacramento, CA503,48213231.8%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Mesa, AZ508,91811615.8%
      Atlanta, GA497,64211615.8%
      Kansas City, MO491,158946.2%
      Fresno, CA526,14711616.5%
      Omaha, NE479,529964.3%
      Sacramento, CA503,48213231.8%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.