Is $90K a Good Salary in California?

A $90,000 salary in California has vastly different implications depending on personal circumstances and specific geographic location. What might be considered comfortable in one part of the state could prove challenging in another.

Key Components of California’s Cost of Living

California consistently ranks among states with the highest cost of living, significantly exceeding the national average. Housing expenses represent the most substantial portion, being more than double the national average. The median home price in California is projected to reach approximately $909,400 in 2025, while the average rent for a two-bedroom apartment is around $2,800 per month.

Transportation costs also contribute significantly, with California experiencing some of the nation’s highest gasoline prices. Vehicle maintenance and insurance, alongside the varying availability and cost of public transportation, add to these expenditures. Groceries and dining out are likewise more expensive, with food costs being approximately 12% to 15% higher than the national average.

Utility expenses for electricity, water, gas, and internet services are notably elevated, averaging around 31% to 38% higher than the national average. The average monthly residential electricity bill is about $260, over 20% higher than the national average. Healthcare costs, including insurance premiums and out-of-pocket expenses, are also about 15% higher than the national average. Miscellaneous expenses such as childcare, personal care services, and entertainment further contribute to daily spending.

Regional Variations in Expenses

The financial reality of a $90,000 salary in California depends heavily on the specific region, as costs vary dramatically. Major metropolitan areas, particularly the San Francisco Bay Area, Greater Los Angeles, and San Diego, are known for their exceptionally high costs. For example, the median home price in San Francisco County is around $1.7 million, and in Santa Clara County, it’s about $2.1 million. Renters in cities like San Francisco and Santa Cruz can expect to pay over $3,000 a month for a two-bedroom apartment.

Mid-cost areas, such as Sacramento, offer a slightly more affordable, yet still above-average, cost of living compared to major metros. While housing costs in Sacramento are lower than in Los Angeles, transportation expenses can be comparable. Utility costs in Los Angeles can sometimes be lower than in Sacramento.

Conversely, regions within the Central Valley, including cities like Fresno and Bakersfield, present considerably lower expenses, particularly for housing. Fresno, for example, has a cost of living that is 28% lower than the state average and only 8% higher than the national average. A $90,000 salary would afford significantly higher quality of life and greater purchasing power in these more affordable areas compared to California’s major urban centers.

Net Income Considerations

A gross salary of $90,000 is subject to various deductions before it becomes take-home pay, impacting disposable income. Federal income tax is a primary deduction, operating under a progressive system where different portions of income are taxed at increasing rates. For a single taxpayer with $90,000 in taxable income, federal tax liability involves rates ranging from 10% to 22% for the 2024 tax year.

California also imposes a progressive state income tax, which is among the highest in the nation. For the 2024 tax year, California’s tax rates range from 1% to 12.3%, depending on income and filing status. The progressive nature means that as income increases, higher portions are taxed at higher rates.

Further deductions include Federal Insurance Contributions Act (FICA) taxes, which fund Social Security and Medicare. For 2025, employees contribute 6.2% of their wages to Social Security (up to $176,100) and 1.45% to Medicare with no wage limit. Beyond these mandatory taxes, common payroll deductions such as health insurance premiums, contributions to retirement accounts like a 401(k), and other voluntary benefits further reduce gross salary. The actual take-home pay will be less, influencing an individual’s ability to cover living expenses and save.

Benchmarking Your Salary

To assess the adequacy of a $90,000 salary in California, compare it against broader economic benchmarks. The median household income in California was approximately $96,334 in 2024, indicating a $90,000 individual salary falls below the state’s median household income. This comparison provides a general perspective on how the salary stands relative to average household earnings.

Online cost of living indices and calculators serve as practical tools for personalized evaluation. These resources allow individuals to compare the purchasing power of a $90,000 salary across various California cities or even against other states. By inputting specific location data, users can gain insights into how their income translates into actual affordability for housing, goods, and services.

Whether $90,000 is a “good” salary is a subjective determination rooted in individual circumstances. Factors such as family size, existing debt obligations, and personal financial goals, including saving for a down payment or retirement, play a significant role. Aligning cost data with personal financial priorities is essential for understanding the implications of this salary level in California.