| Index | San Jose | California | National |
| Cost of living | 217 | 141 | 100 |
| Groceries | 121 | 111 | 100 |
| Health care | 124 | 116 | 100 |
| Housing | 424 | 197 | 100 |
| Transportation | 136 | 118 | 100 |
| Utilities | 131 | 119 | 100 |
| Lifestyle & Entertainment | 135 | 120 | 100 |
| Household Items | 116 | 111 | 100 |
| Education & Childcare | 145 | 127 | 100 |
Are you thinking about relocating, but curious about the potential cost of living in San Jose? Is it more expensive or more affordable than average? Based on the most recent report, the cost of living in San Jose stands at 217, making it 117% higher than the national average. The cost of living directly affects the affordability of one's desired lifestyle. Knowing the cost of housing, transportation, groceries and other essentials in the new area allows people to gauge whether they can maintain their preferred standard of living.
If affordability is among your top priorities when searching for a new place to live, this area may not be the ideal fit, as the cost of living in San Jose is among the most expensive in the United States. Just a minority of areas exhibit a cost of living at least 20% higher than the national average, and unfortunately, San Jose falls into this category, which may not align with your goal of finding a budget-friendly living environment.
Housing costs are a major factor in the San Jose cost of living index, and they often eat up a big chunk of your take-home pay. Unfortunately, in this area, housing expenses for both homeownership and rentals were 323.8% higher than what's typical in an average city. That includes the prices of homes and rents, as well as mortgage rates and insurance.
Household expenses account for 8% of the cost of living index and include the products people rely on every week, from toiletries and detergent to clothing and kitchen essentials. In San Jose, household essentials are 16.1% more expensive than the U.S. average, which can leave less room in your monthly budget.
The relentless increase in grocery prices is a noteworthy trend. In the last two years, grocery costs have experienced an upward trajectory of over 10%. Unfortunately, San Jose is no exception, where grocery prices are 20.9% above the national average.
Locals have the inside scoop on their city. So, we polled 38 residents in San Jose to learn how they view the cost of living. We asked how they felt about the cost of living in their area, and if they thought that prices were increasing, decreasing or staying the same. The verdict? 16% find it reasonable with decreasing prices, but 84% think it's quite pricey, with prices that continue to rise.
Is San Jose affordable? This is a pivotal question, especially when mulling over a move, as affordability carries substantial weight in your decision-making process. Factors such as the cost of living index (discussed earlier), housing expenses and income levels all contribute to a location's affordability. For instance, in San Jose, the median home price is 404.2% higher than the national average and monthly rent prices are 136.1% higher than the typical rates. Additionally, the median income levels play a role in affordability, with San Jose boasting a median household income of $171,721, 111.1% higher than the national average.
Transportation: If public transportation is limited or not available, residents may need to own and maintain vehicles, which can add to the cost of living. Gas, insurance, regular maintenance and potentially lease or finance payments will all need to be paid on a monthly basis. In San Jose, the transportation index is 36.1% higher than the national average.
Healthcare: The costs associated with healthcare and insurance premiums can exhibit notable disparities based on the city or state of residence. Access to healthcare facilities, out-of-pocket expenses for medical appointments, dental care charges, prescription medication costs and specialized medical care expenses all contribute to variations in the cost of living. In San Jose, healthcare costs are 23.7% higher than the national average.
Taxes: Locations with elevated tax rates, encompassing both sales and income taxes, can be a factor in driving up the cost of living. When you're paying more in taxes for everyday household expenses, it naturally translates into higher expenses. Similarly, a higher income tax rate can also contribute to an overall higher cost of living. In San Jose, the standard sales tax rate starts at 7.25%, and the income tax rates commence at 1%.
The San Jose cost of living estimates above use a normalized U.S. average of 100 as the baseline for comparison. Housing values incorporate local home price and rental information from the U.S. Census, while all other estimates are AI-assisted and modeled using expected everyday expenses, local market trends, climate, and transportation-related cost pressures. The results are intended for practical 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 | $219,151 | $18,263 | $5,113 | $6,575 |
| Renters | $126,464 | $10,539 | $2,951 | $3,794 |
| State | General Sales Tax | With Max Surtax |
| California | 7.25% | 10.5% |
| State | Income Tax (Low) | Income Tax (High) |
| California | 1% | 13.3% |
| City | Population | Cost of Living Index | National Avg. |
| Mountain View CDP, CA | 2,675 | 134 | 33.5% |
| Boulder Creek, CA | 5,454 | 166 | 65.9% |
| Alum Rock, CA | 12,233 | 189 | 88.9% |
| Newark, CA | 49,971 | 195 | 95.1% |
| Morgan Hill, CA | 45,880 | 200 | 100.5% |
| San Jose, CA | 1,062,558 | 217 | 117.4% |
| City | Population | Cost of Living Index | National Avg. |
| Ottawa, ON | 1,058,126 | n/a | |
| Edmonton, AB | 1,053,392 | n/a | |
| Austin, TX | 988,400 | 126 | 26.1% |
| Jacksonville, FL | 934,752 | 108 | 8.0% |
| Fort Worth, TX | 926,371 | 103 | 2.9% |
| San Jose, CA | 1,062,558 | 217 | 117.4% |
Here are the best places to live in California
Most Dangerous States In The US
Safest Cities In The US
See the best places to live in San Jose