Here’s the Minimum Salary Required To Be Considered Middle Class in California
Written by
Cindy Lamothe
Edited by
Amen Oyiboke
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Ever feel like your paycheck should be doing more than it is?
In California, the line between “doing okay” and “just scraping by” can be surprisingly blurry.
SmartAsset crunched the numbers on what counts as middle class across the U.S., including major cities. In California, a household is considered middle class if it earns between $63,674 and $191,042 –though in some cities, the numbers can shift a bit.
With sky-high housing costs and everyday expenses adding up fast, it begs the question: What does it actually take to be considered middle class in the Golden State?
Middle-Class Income Varies by City in California
According to Kevin Marshall, CPA and lead contributor at Smithii Tools, you need about $63,674 each year, but of course, the money changes because some cities are more expensive than others.
For example, in San Francisco, he said you need about $84,488, and in San Jose, around $90,810.
“That’s because rent, gas, and certain costs are more expensive in different cities,” said Marshall.
Elizabeth Rivelli, personal finance expert at BestMoney, shared that as of 2023, the official starting point to be considered middle class in California is around $64,000 a year.
“This is calculated like this: you have to earn at least two-thirds of the average household income of the state, and in California, that is around $95,521,” said Rivelli.
She noted the same as Marshall: “Of course California is big and you have to consider where exactly you live.”
California’s Middle Class Pays More — and Saves Less
Life in California is very hard for middle-class families, said Marshall.
Even if a family makes about $130,000 a year, he said they have to spend about $29,753 more than families in other countries, because everything from household needs, basic groceries, gas, childcare, and healthcare costs much more.
“And on top of all that, there are high taxes. There’s an income tax of 13.3%, and a sales tax of 8.8%, and when all of that adds up, it’s hard to save any money,” he said.
Smart Strategies Help California Families Stretch Their Dollars
According to experts, there are ways to make middle-class life in California work.
Marshall noted that retirement accounts like 401(k)s and health savings accounts (HSAs) lower taxes and help you save.
At the same time, homeowners can use exemptions to cut property taxes, and certain veterans or disabled residents can save even more.
Many earn extra income through side jobs like ridesharing or food delivery.
Budgeting methods, such as the 50-30-20 plan — 50% for needs, 30% for fun, 20% for savings — can also help.
Some families save by living with relatives. With the right tools and strategies, it’s possible to manage costs and still plan for the future.
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