The Salary Needed To Crack the Top 5% in 9 California Cities

Living in many California cities isn’t cheap, but rising to the top 5% takes serious money. Results of a recent GOBankingRates survey revealed being part this group is only for notably high earners.

Barely crossing the six-figure earning mark is enough to be a high earner in many U.S. cities, but this is only enough — or sometimes even not enough — to be considered average in these California cities. Worth noting, the real median household income in the U.S. was $74,580 in 2022, according to the U.S. Census Bureau.

Of course, this isn’t the case for the entire Golden State, as average salaries vary greatly by area. Here’s the annual household income you’ll need to be part of the top 5% in nine major California cities.

• Population: 541,528
• Top 5% income lowest limit: $226,427
• Top 5% income average: $379,858
• Percent of household income by the top 5%: 22.12%
• Median household income: $63,001
• Average household income: $85,872

It’s the most affordable city on the list, but your annual household income still has to be at least $226,427 to become part of Fresno’s top 5%. This is more than 2.6 times the city’s average household income.

• Population: 523,600
• Top 5% income lowest limit: $250,000-plus
• Top 5% income average: $409,032
• Percent of household income by the top 5%: 20%
• Median household income: $78,954
• Average household income: $102,258

On average the top 5% households in Sacramento are earning $490,032 per year — four times the city’s average household income. Given this, it’s not surprising that the top 5% households make up 20% of the city’s household income.

• Population: 404,321
• Top 5% income lowest limit: $250,000-plus
• Top 5% income average: $421,975
• Percent of household income by the top 5%: 21.25%
• Median household income: $73,827
• Average household income: $99,270

In Bakersfield, the average top 5% household income is 4.3 times the city’s average household income. A quarter-million dollar annual salary is needed to even break into this top-tier group.

• Population: 462,293
• Top 5% income lowest limit: $250,000-plus
• Top 5% income average: $425,993
• Percent of household income by the top 5%: 20.42%
• Median household income: $78,995
• Average household income: $104,313

The average top 5% income in Long Beach is 5.4 times that of the city’s median household income. Given this, it’s easy to see how the top 5% command 20.42% of this Southern California city’s household income.

• Population: 1.4 million
• Top 5% income lowest limit: $250,000-plus
• Top 5% income average: $572,131
• Percent of household income by the top 5%: 21.58%
• Median household income: $98,657
• Average household income: $132,533

In San Diego, the average household income is 4.3 times less than the average household income of the top 5%. Worth noting, the average household income is well more than six figures.

• Population: 3.9 million
• Top 5% income lowest limit: $250,000-plus
• Top 5% income average: $621,555
• Percent of household income by the top 5%: 26.57%
• Median household income: $76,244
• Average household income: $116,961

The average income of the top 5% of households in Los Angeles is 8.2 times more than the city’s median household income. Notably, the top 5% of households commands more than one-quarter — 26.57% — of the household income in the city.

• Population: 437,825
• Top 5% income lowest limit: $250,000-plus
• Top 5% income average: $643,643
• Percent of household income by the top 5%: 23.07%
• Median household income: $94,389
• Average household income: $139,468

The average income of top 5% households in Oakland is 4.6 times that of the city’s average household income. Elsewhere, even the city’s median household income would be considered above average, as it’s nearly in the six figures.

• Population: 1 million
• Top 5% income lowest limit: $250,000-plus
• Top 5% income average: $722,013
• Percent of household income by the top 5%: 20.07%
• Median household income: $136,010
• Average household income: $179,853

At first glance, you might think San Jose’s average household income of $179,853 is what it takes to get into the top 5% — but far from it. You’ll need to earn at least $250,000 annually, but the average household in this group actually brings in $722,013 per year.

• Population: 851,036
• Top 5% income lowest limit: $250,000-plus
• Top 5% income average: $937,518
• Percent of household income by the top 5%: 23.75%
• Median household income: $136,689
• Average household income: $197,408

In San Francisco, there’s even a massive income disparity among the top 5%. You need to earn at least $250,000 per year to break into this club, but the average household is bringing in $937,518 per year — surprisingly only 4.7 times the city’s average household income.