F
24%
Overall NAT. AVG.
10%
Goods & Services NAT. AVG.
59%
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 California Maryland National
Cost of living124119100
Goods & Services110106100
Groceries113106100
Health care10997100
Housing159150100
Transportation11198100
Utilities101111100

An Overview of Cost of Living in California, MD

Getting a feel for the cost of living in California 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 California is 124, which is 24% 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.

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 California 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, California falls into this category, which may not align with your goal of finding a budget-friendly living environment.

Housing costs are a very significant part of the California 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 58.9% more than the average city. This includes things like home and rent prices, mortgage rates and insurance.

Recurring essentials like haircuts, toothpaste, and entertainment, from movies to gym sessions, can really add up in your budget and make up 33% of the cost of living index. In California, you you will have to spend 10.2% more than average when compared to the typical prices for these items, making it a more expensive place to live.

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, California is no exception, where grocery prices are 12.6% above the national average.

Is California Affordable?

Is California 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 California, the median home price is 53.4% higher than the national average and monthly rent prices are 71.9% higher than the typical rates. Additionally, the median income levels play a role in affordability, with California boasting a median household income of $97,331, 75.9% higher than the national average.

What Factors can Influence the Cost of Living in California?

Taxes: Areas with higher taxes, including sales taxes and income taxes, can contribute to a higher cost of living. Paying more tax for everyday goods and services 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%.

Housing: Elevated demand for housing within coveted locales has the propensity to escalate both property values and rental rates, thereby serving as a primary catalyst for an augmented cost of living. Conversely, areas witnessing diminished housing demand, particularly within less desirable environs, often experience an inversely proportional effect, leading to price reductions and subsequently contributing to a more modest cost of living. In California, the housing index is 58.9% higher than the national average.

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 0.8% higher than the national average.

Where is the Data From?

The California cost of living data you see above is sourced from the C2ER cost of living index, providing a practical and accurate means of comparing living expenses in urban areas. Updated quarterly, this index gathers data from over 300 independent researchers, covering more than 60 goods and services, in 6 different categories. These selections are made meticulously to represent a wide range of consumer expenditure categories. The weightings applied to cost differences are based on government survey data that tracks spending patterns among professional and executive households. It's important to note that while the C2ER index excludes data on sales or income tax rates, AreaVibes factors 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 California is 5% higher than the Maryland average
  • The cost of living in California is 24% higher than the national average
  • California housing is 59% higher than the national average
  • Maryland general sales tax is 18% higher than the national average
  • Maryland state income tax is 23% lower than the national average

Most Affordable Places to Live in and Around California

See all the best places to live around California

Compare California, MD Cost of Living

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      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$117,625$9,802$2,744$3,529
      Renters$72,042$6,004$1,681$2,161
      A good way to judge both the affordability of the housing and the cost of living in California 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. California has a median income of about $117,625 for people who own homes. Based on that number, a maximum of $2,744 should be spent on expenses related to housing. Renters have a slightly different median income, which is $72,042. Based on this average, renters should spend no more than $1,681 on all rental costs if they want to maintain a non-impoverished standard of living.

      Maryland Sales Tax

      State General Sales Tax With Max Surtax
      Maryland 6% 6%

      Maryland Income Tax

      State Income Tax (Low) Income Tax (High)
      Maryland 2% 5.75%

      Goods & Services

      Item California National avg. Difference
      Haircut $25.51$24.265.1%
      Beauty Salon $47.63$45.564.5%
      Toothpaste $3.62$3.702.1%
      Shampoo $1.34$1.284.4%
      Movie $13.08$12.137.8%
      Bowling $24.34$18.0035.2%

      Groceries

      Item California National avg. Difference
      Ground Beef $6.08$5.844.1%
      Fried Chicken $1.41$1.5710.6%
      Milk $4.68$4.670.2%
      Potatoes $5.30$4.937.3%
      Pizza $12.49$12.093.4%
      Beer $10.83$10.414.0%

      Health Care

      Item California National avg. Difference
      Optometrist $120.12$125.684.4%
      Doctor $135.82$135.780.0%
      Dentist $98.77$113.2912.8%
      Ibuprofen $10.80$10.651.4%
      Lipitor $485.49$468.603.6%

      Housing

      Item California National avg. Difference
      Home Price $283,300.00$184,700.0053.4%
      Avg. Mortgage Payment $1,923.85$2,346.6918.0%
      Apartment Rent $1,631.00$949.0071.9%

      Transportation

      Item California National avg. Difference
      Gasoline $3.34$3.463.6%
      Tire Balancing $64.70$59.928.0%

      Utilities

      Item California National avg. Difference
      All Electricity $213.29$193.999.9%
      Phone $184.83$192.253.9%
      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.
      Taylors Island, MD831099.3%
      Lexington Park, MD12,93411212.3%
      Benedict, MD18111515.2%
      Chesapeake Ranch Estates, MD9,57911817.6%
      Lusby, MD2,18011919.3%
      California, MD14,73012424.2%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Lebanon, MO14,7358119.2%
      Lamont, CA14,7241055.0%
      West Nipissing / Nipissing Ouest, ON14,724n/a 
      Bradley Gardens, NJ14,71414848.3%
      Hewitt, TX14,7051000.1%
      California, MD14,73012424.2%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.