Table of Contents Hide
- Average Income in California 2023
- Average Income in California by Age
- Median Income in California
- Median Income in California by Zip Code
- Does the Cost of Living in California Correspond to the Average Income 2023?
- Downsides of Living in California
- How much does it cost to live in California per month?
- What is the lowest pay in California?
- Who can afford to live in California?
- Is life cheap in California?
- Is California a high-paying state?
- Are salaries high in California?
- What is the easiest job that pays the most?
- FAQs On Average Income in California
- What is a good average salary in California?
- What is a good annual salary for a single person?
- What is a good salary in US California?
- Is it worthwhile to live in California?
- What is minimum wage in California?
- Related Posts
If you’re thinking about relocating to California, you would probably be wondering how much you can expect to earn and what the average or median income in California is. The average income in California in 2021, according to Statista is 76,386 US dollars. An average income means the total amount of money received by a person from all sources.
Of course, a variety of factors influence how much money you’ll make regardless of where you live. The amount you can expect to earn from your job is affected by both your chosen field and your level of experience. The area of the state in which you live will also have an impact on your pay. When calculating how much you can expect to earn in California, you should consider all of these factors and more. Having said that, let’s now discuss the average income in California by age, plus the median income by zip code in 2023.
See Also: HOW TO BUY A HOUSE IN CALIFORNIA: Tips, facts & 8 Steps to Buy a House in California
Average Income in California 2023
Remember that California is a large state, so everything from the weather to the cost of living will differ depending on where you choose to settle. California has some of the highest incomes in the country with San Francisco and Los Angeles having the highest-paying occupations.
On the other hand, trade, transportation, manufacturing, utilities, government, IT & telecommunications, financial services, education, health care, and leisure are the largest job sectors available in California. They basically account for roughly 13% of the US gross domestic output.
Moreover, we all know how expensive it is to live in California. So, in 2023, what will be considered an average income in California? Obviously, we would think that a good or typical income ranges from $125k to $160k these days, but it also relies on your family circumstances and lifestyle, as well as the city and region within the state.
An average income, in the end, permits you to live comfortably, but what does that mean in 2023 in California? Let’s find out in 2023 with our assessment of what constitutes an average income in California.
California’s Average Income
California’s average income is approximately $65,539 which is less than the national average of $66,665. Earnings in California range from $133,703 to $20,154; however, the majority of average-wage earners earn between $48,663 and $72,749. Although average income differs by area, research indicates that the chance for a pay raise on experience is minimal. The job market, on the other hand, is quite active. California ranks 17th among the 50 states in terms of average job salaries.
The following are some of the highest-paying jobs in California:
- Gynecologists and Obstetricians
- Nurse Anesthetists
- Chief Executive Office
In California, the minimum wage applies to both salaried and non-salaried workers. There is also a minimum wage for exempt employees. Certain standards must be met by exempt personnel. In other words, they must earn a minimum wage that is twice the state minimum wage. If a company has 25 or fewer employees, the current minimum wage in California is $12 per hour. For larger businesses, however, the rate is $13 per hour. It is therefore expected that by 2023, the rate will have risen to $15 per hour.
Average Income in California by Age
Many would claim that the average income in California varies substantially depending on age. On the contrary, employers cannot compute your average income depending on your gender or age, according to the California Equal Pay Act. A seniority system or a merit system determines income instead. Even if older employees make more than their younger counterparts, you cannot calculate your average income in California depending on age.
Median Income in California
According to the United States Federal Reserve, the median household income in California in January 2020 was 77358.00000 US dollars. Also historically, Median Household Income in California reached a high of 78105.00000 in January 2019 and a low of 25287.00000 in January 1984. Trading Economics presents the most recent actual number, a historical data chart, and related indicators for Median Household Income in California, as reported by the United States Federal Reserve in March of 2023.
Median Household Income in California by Age of Householder
Since the average income of an individual in California is not based on age, an individual householder’s median income in California can however be computed by age.
The table below shows the median income of householders in California by age:
|Under 25 years||$38,389|
|25 to 44 years||$80,095|
|45 to 64 years||$88,861|
|65 years and over||$54,428|
Median Income in California by Zip Code
While Americans use the term “zip code,” most other countries use the terms “post code,” “postal code,” or “pin code.” The zip code is a system used by the United States Postal Service to identify and route mail to specific locations. ZIP is an abbreviation for Zoning Improvement Plan.
Originally, the United States Postal Service utilized a 5-digit zip code. It was later increased to nine digits. It can do a more comprehensive identification using nine digits. Even if a 5-digit zip code is sufficient for mailing postal items, a 9-digit code is primarily used for businesses.
Highest Median Income Zipcode in California
In California, the median income by zip code differs by country. This simply means that some zip codes are higher. Here are some of the highest zip codes in California.
|Position||Zip Code||Median Income|
Does the Cost of Living in California Correspond to the Average Income 2023?
California is a state of opposites. It is home to both wealthy and impoverished cities. As a result, determining the precise cost of living for the entire state is somewhat impossible
The major contributor to the cost of living in California is housing. The range of housing expenses in California is wide. Most California cities have higher rents than the national average. The median rent for a two-bedroom property in Los Angeles, for example, is $1752 which is over $577 higher than the national average. San Diego’s median rent, on the other hand, is $2030. Because the expenses of utilities, healthcare, and childcare are reasonable, the average pay in Los Angeles and San Francisco may be proportionate to the cost of living.
For the most part, utilities are quite inexpensive in most places in California. Food costs vary depending on where you reside. An adult in California requires a living salary of around $30,392 before taxes, according to the MIT Living Wage Calculator. A dozen eggs and a gallon of milk cost roughly $1.83 and $2.91, respectively. Depending on where you live, the costs may be greater.
Furthermore, the state boasts a dependable public transportation system. Long lengths of highways and high-quality infrastructure are also available. Although transportation expenses vary from city to city, the average cost is $4.09. Annual insurance costs $1,846, which is significantly higher than the national average.
In summary, California is an expensive place to live. If you intend to relocate to the state, you should perhaps consult with a financial expert. They can assist you in navigating life in the state.
Downsides of Living in California
While there are many advantages to living in California, the great weather and pleasant neighbors come at a price. As a result, it’s critical for many Americans and foreigners considering relocating to California to examine the financial implications of doing so.
Financial expenses, such as the cost of living, property prices, and taxes, can be substantially greater than in other states in the US due to the high quality of life.
Away from the high zip code, the median and average income in California, let us look at the downsides that come with living in California.
#1. High Cost of Living
As previously said, the golden state has a higher than average cost of living when compared to other states in the United States. In California, everything costs a little more, from rent to minor things like haircuts and clothing.
Therefore, adjusting your lifestyle and creating a realistic budget for all fees, including emergency medical expenditures and travel expenses, is a good method to prepare for these higher costs.
#2. Unpredictable Weather
In California, you can count on sunshine and good weather 99 percent of the time. One of the main reasons why Americans go to the shore is because of this! Unfortunately, living near the sea brings with it an unpredictably changing climate and weather.
Hurricanes frequently strike coastal communities, wreaking havoc on property and even killing people. Storms, hurricanes, tsunamis, and flooding are all possible natural calamities in California, so be prepared.
If you’re considering the benefits and drawbacks of living in California, you’re not alone! Yes, several California cities are deemed overcrowded. As a result, housing, along with schooling, transportation, pollution, and a variety of other concerns, becomes a concern. California is a wonderful place to live, but it may be a little too wonderful!
The state of California, unfortunately, is experiencing a pollution problem. Pollution has been accumulating for decades in areas like Los Angeles and San Francisco as a result of too many cars. Thankfully, the California government is taking significant steps to address this issue, including improved public transit, carpooling, and climate change programs to reduce the effects of human-caused pollution.
#5. Transportation Services are Below Average
One major “con” of living in California is that public transportation is slightly below average. Buses, ferries, railroads, and subways connect California communities. Many California residents, on the other hand, choose to drive themselves about instead of taking the slow and expensive public transportation systems.
As a result, cities like Los Angeles, San Diego, and San Francisco have many more cars on the highways than they need, producing gridlock and potential accidents.
#6. Higher Taxes
California’s government taxes and property taxes are higher than those in other US states. This is due in part to the higher expense of living that comes with a higher standard of living. It is also attributable to overcrowding and the poor quality of medical facilities, schools, and recreational facilities.
#7. Expensive Education
Is it possible to place a price on a decent education? Yes, of course. Private grade school tuition in California is relatively high, putting a strain on young families with several children. In terms of universities, the average college student in California can expect to pay more than $20,000 in tuition costs. Expect hefty student debt if you plan to study in California and aren’t relying on scholarships.
How much does it cost to live in California per month?
How much does it cost to live in California on a monthly basis? The average monthly cost of living in California is around $3,886 based on the BEA’s estimate of the annual cost of living in California ($46,636).
What is the lowest pay in California?
California’s statewide minimum wage will be $15.50 per hour as of 2023. The federal minimum wage of $7.25 per hour is superseded by California’s minimum wage statute. You must be paid the higher state minimum wage rate if you work in California.
Who can afford to live in California?
The cost of living in California is affordable if you earn more than $46,636 annually. According to the US Economic Bureau of Analysis, this is roughly how much the typical Californian household spends every year.
Is life cheap in California?
In comparison to the national average, California has a 41% higher cost of living. Utilities are 27% more expensive than the national average, while housing is 96% more expensive.
Is California a high-paying state?
Silicon Valley, Hollywood, and more than 50 Fortune 500 corporations are all located in California. The high incomes are a result of California’s high cost of living.
Are salaries high in California?
In comparison to several other states in the US, California has a greater median household income. However, it also has some significant disadvantages that, for some people, may outweigh this large income.
What is the easiest job that pays the most?
Pet care, puppy walking, house watching, technical writing, medical care, delivery driving, massage treatment, and political science positions are among the simple, well-paying jobs. Most of these jobs just require the necessary skill set and sometimes a post-secondary degree.
FAQs On Average Income in California
What is a good average salary in California?
In California, the average salary is $65,539, while the mean salary is $91,149. The average annual salary in the 25th percentile is $48,633, and the average annual salary in the 75th percentile is $72,749. The salary you earn in California is heavily influenced by your profession and where you live.
What is a good annual salary for a single person?
While a single person’s pay will vary depending on where they reside, the median household income in the US is $67,521. Hence, a single person earning at least $67,521 can be considered a decent salary, but this is commonly based on numerous salaries in the same household.
What is a good salary in US California?
California’s average wage is $63,783. That’s the median salary, which basically represents average salaries in California better than the mean. Salary: $91,149. Your wage in California is heavily influenced by your location and work.
Is it worthwhile to live in California?
For the most part, living in California is a wonderful experience. Furthermore, if you’re willing to put up with greater living costs and spend a few hundred thousand dollars more on a home, then the golden state lifestyle is superior to that of many other areas in the world.
What is minimum wage in California?
The state minimum wage for firms with 25 or fewer employees will rise to $14 per hour on Jan. 1, 2023, from $13. Additionally, the state minimum wage for firms with 26 or more employees will increase from $14 to $15 per hour.