F
133%
Overall NAT. AVG.
8%
Goods & Services NAT. AVG.
404%
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 Santa Clara California National
Cost of living233140100
Goods & Services108111100
Groceries115112100
Health care123109100
Housing504196100
Transportation130126100
Utilities132127100

An Overview of Cost of Living in Santa Clara, CA

Getting a feel for the cost of living in Santa Clara 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 Santa Clara is 233, which is 133% 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 Santa Clara 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, Santa Clara falls into this category, which may not be suitable for those seeking an economically favorable living environment.

Housing costs make up a big chunk of the cost of living in Santa Clara, 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 404.4% more than the average city. This includes stuff like home prices, rent, mortgage rates, and insurance.

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, Santa Clara is no exception, where grocery prices are 14.5% above the national average.

What Do Locals Say About the Cost of Living in Santa Clara?

The most insightful perspective on a city comes from its residents. We recently surveyed 18 locals to gauge their perception of the cost of living in Santa Clara. The feedback revealed that 28% of respondents found the cost of living to be reasonable, with prices on the decline, while 72% regarded it as notably expensive with prices that continue to rise.

Is Santa Clara Affordable?

Wondering if Santa Clara is affordable? It's a question that often comes up when you're thinking about a new city since affordability can really shape your decisions. The cost of living index (covered earlier), housing expenses and income levels all play a part in the affordability equation. In Santa Clara, for example, the median home price is 506.6% higher than what folks pay nationally, and monthly rent is 165.9% higher than the usual rates. Plus, income levels matter too, with Santa Clara boasting a median household income of $136,870, which is 147.4% higher than the national average.

What Factors can Influence the Cost of Living in Santa Clara?

Subsidies: Some areas might offer government subsidies or assistance programs that help lower cost of living for residents. These programs can include anything from 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 crop subsidies. Areas that offer less subsidies, could see an increase in their cost of living.

Taxes: Cities that impose higher taxes, including sales and income taxes, can contribute to an escalated cost of living. The added expense of taxes on everyday goods like clothing and food naturally results in higher overall costs. Similarly, a higher income tax rate can further elevate the cost of living. In Santa Clara, the general sales tax rate starts at 7.25%, and income tax rates begin at 1%.

Healthcare: Healthcare expenses and insurance premiums can vary significantly depending on the specific city or state. Factors such as accessibility to healthcare facilities, out-of-pocket expenses for doctor's visits, dental care expenses, prescription costs and specialized medical care fees can all influence the overall cost of living. In Santa Clara, healthcare costs are 22.6% higher than the national average.

Where is the Data From?

The cost of living in Santa Clara, presented above is derived from the C2ER cost of living index, offering a practical method for assessing living cost disparities in urban areas. Published quarterly, this index compiles data from more than 300 independent researchers, encompassing over 60 goods and services in 6 categories. The weightings assigned to cost variances are informed by government survey data tracking the expenditure patterns of professional and executive households. It should be noted that the C2ER index does not include data on sales or income tax rates, however, AreaVibes incorporates tax rates into the overall cost of living score for each area.

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Cost Of Living Quick Facts

  • The cost of living in Santa Clara is 67% higher than the California average
  • The cost of living in Santa Clara is 133% higher than the national average
  • Santa Clara housing is 404% 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 Santa Clara

See all the best places to live around Santa Clara

Compare Santa Clara, CA Cost of Living

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      Salary Calculator

      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$164,581$13,715$3,840$4,938
      Renters$114,563$9,547$2,673$3,437
      A good way to judge both the affordability of the housing and the cost of living in Santa Clara is by simply calculating the maximum that should be spent on housing, otherwise known as the debt-to-income ratio (DTI). The plan is to avoid spending more than 28 percent of the gross income on costs that pertain to housing and no more than 36 percent on all expenses and debts. Santa Clara has a median income of about $164,581 for people who own homes. Based on that number, a maximum of $3,840 should be spent on expenses related to housing. Renters have a slightly different median income, which is $114,563. Based on this average, renters should spend no more than $2,673 on all rental costs if they want to maintain a non-impoverished standard of living.

      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 Santa Clara National avg. Difference
      Haircut $33.94$24.2639.9%
      Beauty Salon $48.51$45.566.5%
      Toothpaste $3.72$3.700.4%
      Shampoo $1.66$1.2829.9%
      Movie $13.31$12.139.7%
      Bowling $33.30$18.0085.0%

      Groceries

      Item Santa Clara National avg. Difference
      Ground Beef $5.79$5.840.8%
      Fried Chicken $2.13$1.5735.7%
      Milk $5.05$4.678.2%
      Potatoes $4.77$4.933.4%
      Pizza $14.92$12.0923.5%
      Beer $10.99$10.415.6%

      Health Care

      Item Santa Clara National avg. Difference
      Optometrist $158.95$125.6826.5%
      Doctor $194.05$135.7842.9%
      Dentist $147.78$113.2930.4%
      Ibuprofen $11.51$10.658.1%
      Lipitor $390.15$468.6016.7%

      Housing

      Item Santa Clara National avg. Difference
      Home Price $1,120,400.00$184,700.00506.6%
      Avg. Mortgage Payment $8,581.10$2,346.69265.7%
      Apartment Rent $2,523.00$949.00165.9%

      Transportation

      Item Santa Clara National avg. Difference
      Gasoline $4.81$3.4638.9%
      Tire Balancing $65.62$59.929.5%

      Utilities

      Item Santa Clara National avg. Difference
      All Electricity $294.74$193.9951.9%
      Phone $190.07$192.251.1%
      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.
      Mountain View CDP, CA2,58513030.1%
      Alum Rock, CA11,79817877.8%
      Newark, CA48,14819797.0%
      East Palo Alto, CA29,448206105.5%
      San Jose, CA1,029,409208108.2%
      Santa Clara, CA126,723233133.1%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Lafayette, LA126,674982.4%
      Topeka, KS125,8198812.3%
      Pearland, TX125,81711212.4%
      Saanich, BC125,800n/a 
      Thousand Oaks, CA127,64818787.3%
      Santa Clara, CA126,723233133.1%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.