Many people dream of living in California. Considering it’s one of the most expensive states, however, some fear their dream may never come true. However, the average cost to live in California depends on the numerous financial aspects of making the potential move.
Sitting down and breaking down the costs and looking over your own finances will help you determine if moving to California is a financially doable option for you.
Are you ready to find out how expensive it really is to live in California? Let’s take a detailed look.
Housing Costs
The average cost of housing in California will vary greatly depending on where in the state you plan on moving to. It will also depend on the type of housing you opt for.
As a rough estimate, you can expect to pay anywhere from about $1600 to just over $3000 a month for housing, whether that be your mortgage or rent.
The median cost per month for a mortgage in California is $2800. Meanwhile, the median cost for a one-bedroom apartment is about $1700 a month.
Whether you’re considering beautiful homes for sale in Alameda, CA or looking for a place to rent in an affordable Tulare County-based town, there’s a housing option available for you within your budget in the Golden State.
Utility Costs
As a general guideline, expect to pay about $400 a month in utility costs when living in California, including cable and internet.
The average monthly California bill for electricity is $145, with natural gas costing around $35, cable and internet accounting for around $120, and water being around $95.
Groceries Costs
If you’re a singleton, your monthly cost for groceries for yourself will likely be around $390 a month. Add that number again to your monthly expenses for any additional person living in your home.
However, keep in mind that grocery and restaurant costs vary drastically depending on the city you live in and the stores or restaurants you choose to support.
Transportation Costs
For a single, childless adult, they can expect to spend about $10,600 in transportation costs annually when residing in California. That number increases to an average annual expense of $19,700 when there are two adults and three kids in the picture.
Rest assured that there are many transportation options available in the Golden State, including free and/or low-cost options.
This includes Caltrans, public buses, Paratransit, the High-Speed Rail system, ferries, ride sharing, planes, bicycles, and trains.
Healthcare Costs
Just about anywhere in the United States you live, healthcare costs can add up quickly. However, they’re required, and what is more, they’re essential.
According to the California Health Care Foundation, Californians spend about $10,300 a person on an annual basis. However, how much you actually end up spending a year will depend on your age, current state of health, and the plan you end up with.
Childcare Costs
Childcare expenses can add up quickly, especially if you have more than one child. The good news is, there are many different childcare options to consider with varying costs. What is more, you can write childcare costs off on your taxes every year.
Infant classrooms, toddler classrooms, preschooler classrooms, and home-based family child care cost roughly $1800, $1400, $1000, and $1300 a month per child, respectively, according to the Cost of Childcare organization.
How much you pay for childcare each month not only depends on how many children you have but many other factors as well:
- The demand and market value for childcare in your city
- Children-per-teacher ratio
- Teacher/staff salaries
- General facility costs
- Food costs
- Types of educational materials used
- Activities and amenities available
- Type and intensity of curriculum
Remember that once your child reaches age four and enters pre-k, their care will be free, that is, unless you enroll them into a private school.
Taxes
Now, you’re curious how California’s tax system looks. They’re something everyone pays, so you might as well become familiar with them now.
According to the Tax Foundation, individual income tax ranges from 1% to 13.3% and an 8.84% tax rate on corporations. The state of California’s sales tax is 7.25%, and when combined with county sales tax, the average overall sales tax is 8.85%. As for the property tax rate, it’s 0.68% in California.
There are also other taxes as well such as the gas tax and cigarette excise tax, which are 68.1 cents a gallon and $2.87, respectively.
Other Expenses
Of course, how much you spend as a California resident goes beyond the essentials, from the cost of groceries to how much you spend on transportation each year. There are other expenses to keep in mind, which you can make as frugal or as lavish as you’d like, depending on your budget.
Here are some other average, non-essential expenses Californians spend annually:
- $2250 per vacation
- $2700 on going out to eat
- $1400 on clothing per person
- $5500 on unexpected expenses
An Overview of the Costs
So, how expensive is it to make California your new permanent home? With all of the latter necessary expenses in mind, the average cost to live in California is around $64,835 a year. This will give you a better idea of whether or not California living is something you can afford or want to pay for.
Remember that there are ways to make your living expenses more affordable in California. From moving to a cheaper California city and finding cheaper rent to considering less expensive childcare options and cutting back on non-essential expenses like dining out, there are ways to ensure your cost of living in the Golden State doesn’t go well above your budget.
Conclusion
For being a state with favorable weather, many things to do, great tourist attractions, and a diverse landscape, the average cost to in live in California isn’t too shabby. What is more, there are plenty of cost-friendly cities in California to consider, from Bakersfield to Redding, if your budget is tighter. This makes California living a possibility for many folks.
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