What Is Upper Middle Class in California?

An individual’s financial standing in contemporary society is understood through the concept of economic class, a multi-dimensional framework extending beyond mere income. This classification reflects a blend of financial resources, educational attainment, occupational status, and lifestyle. The fluidity of these categories means that benchmarks shift based on location and prevailing economic conditions. This article explores the characteristics and financial thresholds that define the “upper middle class,” specifically within California’s unique economic landscape.

Understanding the Upper Middle Class

The upper middle class represents a segment of the population distinguished by more than just their earnings. While income serves as a primary indicator, it is not the sole determinant of this socio-economic group. Educational background plays a significant role, with many individuals in this class holding bachelor’s, master’s, or professional degrees. These advanced degrees often lead to specific career paths.

Common professions associated with the upper middle class include white-collar professionals such as physicians, lawyers, university professors, engineers, and managers. These occupations frequently offer a high degree of autonomy and involve tasks centered on conceptualization, consultation, and instruction. Beyond current income, the accumulation of wealth and assets, including investments and property, further distinguishes this group. The typical upper-income household had a median net worth of approximately $803,400 as of 2021.

California Income Benchmarks

Defining the upper middle class in California requires examining specific income thresholds, which are based on household earnings. The U.S. Census Bureau reported California’s median household income as $96,334 in 2023, notably higher than the national median of $78,538. Financial research often categorizes income tiers by comparing them to the median household income.

Using the Pew Research Center’s methodology, a California household needed to earn between approximately $63,674 and $190,644 annually to be considered middle class in 2023. Therefore, to be categorized as “upper income,” which encompasses the upper middle class, a household’s earnings would generally exceed $190,644 in California. These figures are for a typical household, but specific income thresholds can vary with household size. For instance, in 2023, the median income for a one-person household in California was $49,595, while a seven-person household had a median income of $138,755.

The Role of California’s High Costs

California’s income benchmarks are significantly elevated compared to the national average due to its persistently high cost of living. The state’s overall cost of living index is 142.2, indicating it is about 42.2% more expensive than the national average. This elevated cost impacts various aspects of daily life, necessitating higher incomes to maintain a comparable standard of living.

Housing costs are a primary driver of this financial burden, with expenses for rent and homeownership being substantially higher than the national average. Housing in California is approximately 116% more expensive than the national average. The median home price in the state reached $910,160 in April 2025.

Beyond housing, utility costs are about 31% higher, and transportation expenses are the second highest in the country, reflecting elevated fuel prices and vehicle-related costs. California also imposes a progressive state income tax system, with rates ranging from 1% to 13.3% for incomes over $1 million. The statewide sales tax is 7.25%, with combined state and local rates averaging 8.85%. Consequently, a higher nominal income in California may translate to a similar or even reduced purchasing power when compared to a lower income in a less expensive state.

Variations Across California Regions

California’s economic landscape is diverse, leading to substantial variations in what constitutes the upper middle class across its different regions. Income thresholds and the cost of living can differ dramatically from one metropolitan area to another. For example, in the highly expensive Bay Area, a household in San Jose needed to earn between $90,810 and $272,458 annually to be considered middle class in 2023, while in San Francisco, the range was $84,478 to $253,460.

Conversely, in areas with a lower cost of living, such as Fresno in the Central Valley, the middle-class income range was significantly lower, from $46,064 to $135,206. These regional disparities are directly linked to varying costs for essentials, particularly housing. Median home prices in Bay Area counties like San Mateo and Santa Clara can exceed $2 million, whereas in parts of the Central Valley, such as Lassen County, median home prices were around $226,501 in early 2025. Local economic factors, including dominant industries, job market opportunities, and population density, contribute to these regional differences, shaping the financial realities for the upper middle class across the state.