California's cost of living index is 140.3 — 40.3% above the US average of 100 (MERIC (C2ER index), Second Quarter 2026). The index averages the cities that take part in the survey, so it describes those areas rather than the whole state. Compare purchasing power and equivalent salaries across states.
CoL Index
140.3
US avg = 100 · MERIC (C2ER index), Second Quarter 2026
vs. National Avg
+40.3%
More expensive
Median Income
$100,149
Median household · Census ACS 2024 1-year
Equiv. at US Avg
$71,382
Same purchasing power
| CoL Index | 140.3 | MERIC (C2ER index), Second Quarter 2026 — composite, US avg = 100 |
| vs. National | +40.3% | Above average cost |
| Median Household Income | $100,149 | California median — Census ACS 2024 1-year |
| National Purchasing Power | $71,382 | Equivalent $ at US avg CoL |
| Overall Category | Very High | CalcHub band of the index: Low < 90 ≤ Moderate < 100 ≤ High < 115 ≤ Very High |
| Population | 39,355,309 | Census Bureau estimate, July 1, 2025 |
With a cost of living index of 140.3, California is 40% above the national average. Higher costs in California mean your dollar stretches less far than in most states. A salary of $100,149 in California provides the equivalent purchasing power of $71,382 in a state with average cost of living.
Housing is typically the largest driver of cost of living differences between states.California's typical home value of $764,200 is well above the U.S. typical value of $368,700 (Zillow Home Value Index, August 2026). Other factors include state income tax (13.3% top rate in California), sales tax (7.25% state rate), and property taxes (0.71% effective rate).
