Here’s the Minimum Salary Required To Be Considered Upper Class in California
Written by
Jordan Rosenfeld
Edited by
Molly Sullivan
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If you think earning six figures makes you upper class in California, you might be surprised to learn it’s not quite that simple. With the state’s high cost of living, particularly in cities like San Francisco and Los Angeles, the income required to reach the upper class is higher than many expect.
In fact, according to GOBankingRates research, the minimum salary needed to be considered upper class in the Golden State is significantly higher than in many other states. It ranks as the fourth highest in the country, making financial success in California a steeper climb. So, how much do you really need to earn to join the ranks of the wealthy? Let’s break it down.
A Spectrum of Income Levels
While factors such as location, salary and other assets all go into determining one’s income class, the threshold to be considered upper class in the U.S. begins at $169,800, according to the Pew Research Center.
Being upper class doesn’t just mean you earn a higher income; it also implies that you have the ability to build and grow wealth more quickly than those in lower-income brackets. Wealth accumulation is a key differentiator, as income alone does not necessarily equate to financial security or affluence. According to Pew, as of 2021, for example, the typical upper-income household had a median net worth of $803,400. That was 33 times the wealth of the typical lower-income household ($24,500) and nearly four times that of middle-income households ($201,800).Â
The Minimum Salary To Be Upper Class in California
According to GOBankingRates’ survey, which utilized data from the 2023 American Community Survey (conducted by the U.S. Census Bureau), the median household income in California is $96,334. The middle-income class range is from $64,223 to $192,668. Thus, in California, to be upper class, you need to earn almost $23,000 more than Pew’s national threshold.
This number, however, does not account for the reality of California’s vastly different living costs across regions. While $192,668 might be sufficient to be considered upper class in some parts of the state, it may not go nearly as far in high-cost areas of the state.
Location, Location, Location
Additionally, someone earning a salary of $192,668 or higher in San Francisco, parts of Silicon Valley or San Diego might say they don’t feel like they belong to the upper class. That’s because the cost of living in these areas is significantly higher than in other parts of the state, such as Stockton or Sacramento. Housing alone can make a massive difference in how far an income stretches.
For example, the median home price in San Francisco is well over $1 million, and even renting can be exorbitant, according to Realtor.com. A modest two-bedroom apartment in the city could cost upwards of $4,000 per month, eating up a large portion of one’s income. However, in cities like Fresno or Bakersfield, housing is much more affordable, allowing that upper class income to go significantly further.
The Cost of Living Factor
Beyond housing, California residents face some of the highest costs for necessities such as groceries, healthcare and transportation. According to data from the Bureau of Economic Analysis, California has one of the highest regional price parities in the country, meaning everyday expenses cost significantly more than in many other states.
Because of these factors, someone making close to $200,000 per year in San Francisco may struggle to afford a lifestyle that would be considered comfortably upper class in other parts of the state, and most definitely in other states.Â
While six-figure salaries might suggest financial success, they don’t necessarily equate to being upper class in California. Ultimately, wealth accumulation, not just income, is the real measure of financial security and class status.
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