California isn’t known for its affordability. It can be challenging for a two-income household to keep up with the high cost of living expenses and even more difficult for a single person.
But just how much does a single person in California need to make to live comfortably? A new study from Smart Asset determined that a person must make at least $ 89,190 to get by comfortably.
Here’s the breakdown.
Using data from the latest MIT Living Wage Calculator and the 50/30/20 budgeting method, Smart Asset calculated the pre-tax salary a single person without kids would need to earn to “live comfortably” in 99 of the largest cities in the U.S., including those in California.
The 50/30/20 budgeting method separates one’s budget into three categories: basic living expenses, discretionary spending, and saving or paying off debt.
The budgeting method calls for 50% of the salary to be used to pay for basic living expenses, such as rent and bills, 30% for personal spending, and 20% to be put into a savings account or used to pay down debt.
The data used in the study analyzed the cost of living in each city as of 2024.
In some California cities, like Bakersfield and Fresno, a single person would need to make at least $89,190 to “live comfortably,” the data shows.
However, the salary requirement is higher in cities like Sacramento, Los Angeles, Irvine, and San Diego. To live comfortably, people in these areas should make over $104,000.
The study found that 7 of the 10 cities with the highest salaries needed to live comfortably are in California.
- New York City: $138,570
- San Jose, California: $136,739
- Irvine, California: $126,797
- Santa Ana, California: $126,797
- Boston: $124,966
- San Diego: $122,803
- Chula Vista, California: $122,803
- San Francisco: $119,558
- Seattle: $119,392
- Oakland, California: $118,768
In contrast, according to Smart Asset, people in Houston, Tulsa, and Cleveland needed to make between $75,000 and $82,000 pre-tax to afford a comfortable life.
These are the top 10 cities with the lowest salary requirement to live comfortably.
- Houston, Texas: $75,088
- El Paso, Texas: $75,254
- Lubbock, Texas: $75,379
- Toledo, Ohio: $77,501
- Laredo, Texas: $78,458
- Milwaukee, Wisconsin: $79,664
- Lexington, Kentucky: $79,997
- Tulsa, Oklahoma: $81,078
- Wichita, Kansas: $81,203
- Cleveland, Ohio: $81,786
Researchers found that, on average, single adults living in 99 of the largest metro areas in the U.S. need to make $96,500 to sustain comfortable living.
FAQs
A new study from Smart Asset determined that a person must make at least $ 89,190 to get by comfortably.
How much does a single person need to make to live in California? ›
Here, a single person needs $110,781 annually or $53.26 in hourly wages to be comfortable, according to the data. For a family of two working adults with two children, a salary of $276,557 is needed.
What salary is considered rich for a single person in California? ›
How rich is rich in California? As of 2022, the top 5% of earners in the state made $613,602 a year on average, according to a recent analysis from personal finance site GoBankingRates. That's roughly a 37% increase from 2017, when top earners raked in an average annual income of $447,207.
How much does a single person need to make to live comfortably in the US? ›
The national median for living comfortably alone is $89,461, which suggests that a 50/30/20 budget might not be practical for most single people.
What is the true cost of living in California? ›
Summary. California's average cost of living is $53,082 annually. Californians spend more than any other state on groceries per month, at $298. California is also above the national average when it comes to the cost of utilities, with the average monthly bill coming in at nearly $438.
What is low income in California for a single person? ›
Very-Low, Low and Moderate-Income Limits
| Household Size | Very-Low Income | Moderate-Income |
|---|
| 1 | $11,550 or less | $19,301 - $30,850 |
| 2 | $13,200 or less | $22,051 - $35,250 |
| 3 | $14,900 or less | $24,801 - $39,650 |
| 4 | $16,550 or less | $27,551 - $44,100 |
4 more rowsThe following data are the most current income statistics for California from the US Census Bureau, are in 2022 inflation adjusted dollars and are from the American Community Survey 2022 5-year estimates. Median Household Income: $91,905. Average Household Income: $130,718. Per Capita Income: $45,591.
What is middle class single income in California? ›
With New Jersey ranking as the top state to make the most money to be considered middle class, other states ranking in the top five requiring salaries exceeding $50,000 to be in this category include Maryland ($63,321) and Massachusetts ($62,986), Hawaii ($61,633) and California ($61,028).
What salary is considered poor in California? ›
2024 Federal Poverty Guidelines
| Persons in Family Household | Poverty Guideline | MAGI Household Income <500% FPL |
|---|
| 1 | $15,060 | $75,300 |
| 2 | $20,440 | $102,200 |
| 3 | $25,820 | $129,100 |
| 4 | $31,200 | $156,000 |
4 more rowsMar 29, 2024
Upper middle class: Anyone with earnings in the 60th to 80th percentile would be considered upper middle class. Those in the upper middle class have incomes between $89,745 and $149,131. Upper class: Finally, the upper class is the top 20% of earners and they have incomes of $149,132 or higher.
The average annual average salary in the U.S. is $63,795. The median annual salary, which is often less skewed by outlying numbers, is $59,384. It's worth noting that average and median salaries vary quite a bit by state.
What is a livable hourly wage? ›
According to research from MIT, the living wage in the United States was $25.02 per hour ($104,077.70 per year) before taxes per year in 2022 for a family of four (two working adults with two children). That's an increase from $24.16 ($100,498.60 per year) in 2021.
How much money to live without working? ›
To account for this, experts suggest you multiply your desired retirement income by 25 times. So if you want to retire on $20,000 a year, you would need $500,000 saved to live comfortably and never have to work again.
How much salary do I need to live comfortably in California? ›
Overall, SmartAsset found that to live comfortably in any major city, you need to make about $96,500 annually, up immensely from the nearly $68,500 it estimated last year. A family of four would need to make much more at $235,000 to avoid living paycheck to paycheck.
How much does it cost a month to live in California? ›
What is the cost of living in California? According to 2021 data from the Bureau of Economic Analysis , the annual average cost of living in California is $53,082. Based on that number, it would cost $4,423 per month to live in California. Here is how that breaks down by major spending categories.
Is 80k livable in California? ›
A single person needs upwards of $80,000 a year to live comfortably in California, survey data shows.
Is $80,000 a good salary for a single person? ›
Is $80K a good salary for a single person? $80,000 is about $5,000 higher than the U.S. median household income, so many people would consider it very good for a single person. “Good” is always a relative term when it comes to salary; whether or not the amount you earn covers your expenses is a highly personal dynamic.
Is $80,000 a good salary in California? ›
A single person needs upwards of $80,000 a year to live comfortably in California, survey data shows. California is not known for its affordability, but exactly how much it takes for a single person to live comfortably here might surprise you.
Is $75000 a good salary for a single person? ›
If you make $75,000 a year, you're earning more than half of all workers in the U.S. And in fact, many people would probably consider the salary as good pay. After all, a $75,000 salary works out to around $6,250 per month, $1,442.31 per week, or $36.06 an hour.
