California Salaries 2025
Highest pay in the nation with tech hub premiums
Median Household Income (Highest in Continental US)
California Salary Overview 2025
California offers the highest salaries in the continental United States, driven by its position as the global center for technology, entertainment, and biotech industries. The state's median household income of approximately $72,000 significantly exceeds the national median of $74,580, though this figure masks the substantial variation between regions—from Silicon Valley's astronomical tech salaries to the more moderate wages in the Central Valley.
However, California's high salaries come with significant trade-offs. The state imposes the nation's highest marginal income tax rate (13.3% for top earners), and the cost of living—particularly housing—ranks among the most expensive in the country. A $150,000 salary in San Francisco provides roughly equivalent purchasing power to an $80,000 salary in many Midwest cities.
2025 brings continued wage growth, particularly in tech (AI/ML premium +30-50%), healthcare, and skilled trades. The state's $16.00 minimum wage (rising to $16.50 in some cities) remains the highest statewide rate in the nation. For comprehensive salary data, see salary trends 2025 and average US salary.
California Salary Snapshot
| Metric | California | National Average |
|---|---|---|
| Median Household Income | $72,000 | $74,580 |
| Mean Household Income | $106,000 | $97,300 |
| Per Capita Income | $41,000 | $37,638 |
| Minimum Wage (2025) | $16.00/hr | $7.25/hr (federal) |
| Cost of Living Index | 142 (42% above avg) | 100 |
| Top Income Tax Rate | 13.3% | Varies by state |
California's mean household income significantly exceeds the median, reflecting the extreme wealth concentration in tech and entertainment. Use our salary calculator for conversions.
California Salaries by Metro Area
| Metro Area | Median Household | COL Index | Key Industries |
|---|---|---|---|
| San Jose-Sunnyvale (Silicon Valley) | $140,000+ | 175 | Tech, semiconductors |
| San Francisco-Oakland | $120,000+ | 170 | Tech, finance, biotech |
| San Diego | $85,000 | 145 | Biotech, defense, healthcare |
| Los Angeles-Long Beach | $76,000 | 155 | Entertainment, aerospace, trade |
| Sacramento | $73,000 | 120 | Government, healthcare |
| Riverside-San Bernardino | $65,000 | 110 | Logistics, manufacturing |
| Fresno (Central Valley) | $55,000 | 100 | Agriculture, food processing |
San Jose-Sunnyvale-Santa Clara (Silicon Valley)
Median Household Income: $140,000+
The global epicenter of technology, home to Apple, Google, Meta, NVIDIA, and thousands of startups. Software engineers routinely earn $150,000–$300,000+ base salary, with total compensation (including stock) reaching $400,000–$700,000+ at senior levels. The astronomical incomes are partially offset by median home prices exceeding $1.5 million and average rents of $3,000–$4,500/month for a one-bedroom apartment.
San Francisco-Oakland-Berkeley
Median Household Income: $120,000+
San Francisco remains a major tech hub despite some company relocations, hosting Salesforce, Uber, Airbnb, and countless startups. Oakland offers a slightly lower cost of living while maintaining Bay Area salaries. Finance, legal services, and biotech also pay premium wages. Expect $3,000–$4,000/month for a modest apartment.
Los Angeles Metropolitan Area
Median Household Income: $76,000
Entertainment industry headquarters (studios, streaming, gaming) with salaries varying wildly—from struggling actors to executives earning millions. Aerospace (SpaceX, Northrop Grumman), healthcare, and international trade also drive employment. Tech presence growing in "Silicon Beach" (Santa Monica, Venice) with salaries approaching Bay Area levels for top talent.
San Diego
Median Household Income: $85,000
Biotech and pharmaceutical hub (Illumina, Qualcomm, numerous startups), major military presence (Navy), and growing tech sector. Lower cost of living than LA or SF while maintaining strong salaries. Popular destination for remote workers seeking California lifestyle at slightly lower cost.
California Salaries by Industry
| Industry | Average Salary | Top Roles |
|---|---|---|
| Technology (Software) | $150,000–$250,000 | Sr. SWE $200K–$400K+ TC |
| Tech (AI/ML) | $180,000–$350,000 | ML Engineer $250K–$500K+ TC |
| Finance (Bay Area) | $120,000–$200,000 | VP $200K–$400K |
| Healthcare | $75,000–$150,000 | Physician $250K–$500K |
| Entertainment | $60,000–$150,000 | Director $150K–$500K+ |
| Biotech/Pharma | $100,000–$180,000 | Scientist $130K–$200K |
| Legal (Big Law) | $190,000–$250,000 | Partner $500K–$2M+ |
| Construction/Trades | $55,000–$95,000 | Master Electrician $85K–$120K |
Technology Dominance
California's tech sector drives wage inflation across all industries. Entry-level software engineers at FAANG companies earn $150,000–$200,000 total compensation, while senior/staff engineers reach $300,000–$500,000+. The AI/ML boom has pushed specialized salaries even higher—machine learning engineers command $250,000–$500,000+ at top companies. See our software engineer salary guide and ML engineer salary guide for details.
Healthcare Premium
California healthcare salaries exceed national averages by 15–25% due to higher cost of living and strong union presence. Registered nurses earn $90,000–$150,000 (travel nurses even more), nurse practitioners $130,000–$180,000, and physicians $250,000–$500,000+ depending on specialty. Kaiser Permanente, UCLA Health, and Stanford Health are major employers.
Skilled Trades Demand
Construction trades face severe labor shortages, pushing wages up significantly. Union electricians in the Bay Area earn $85,000–$120,000+ with excellent benefits. HVAC technicians, plumbers, and welders similarly see premium wages. California's extensive building codes (seismic, energy efficiency) create specialized demand.
California Cost of Living: The Real Story
| Expense Category | Bay Area | LA | San Diego | Sacramento |
|---|---|---|---|---|
| 1BR Apartment (avg) | $3,200–$4,000 | $2,400–$3,000 | $2,200–$2,800 | $1,600–$2,000 |
| Median Home Price | $1.5M+ | $900K | $850K | $550K |
| Gas (per gallon) | $5.00–$5.50 | $5.00–$5.50 | $4.80–$5.20 | $4.70–$5.00 |
| Groceries Index | 130 | 110 | 105 | 100 |
| Healthcare Index | 115 | 105 | 102 | 100 |
Housing: The Critical Factor
Housing costs consume the largest portion of California income, particularly in coastal metros. A household earning $150,000 in the Bay Area—seemingly affluent—may struggle to afford home ownership when median prices exceed $1.5 million (requiring roughly $300,000 down payment and $8,000+/month mortgage). Many high-earning professionals remain renters indefinitely or commute 60+ miles from more affordable areas.
California Premium Calculation
To maintain equivalent purchasing power to a $100,000 salary in the average US city:
San Francisco/San Jose: $175,000–$190,000 needed
Los Angeles: $155,000–$165,000 needed
San Diego: $145,000–$155,000 needed
Sacramento: $120,000–$125,000 needed
Many California employers offer cost-of-living adjustments (COLA), though these rarely fully compensate for the gap, particularly in housing.
California State Income Tax 2025
| Taxable Income | Tax Rate | Cumulative Tax |
|---|---|---|
| $0–$10,412 | 1.0% | $104 |
| $10,413–$24,684 | 2.0% | $389 |
| $24,685–$38,959 | 4.0% | $960 |
| $38,960–$54,081 | 6.0% | $1,868 |
| $54,082–$68,350 | 8.0% | $3,009 |
| $68,351–$349,137 | 9.3% | $29,112 |
| $349,138–$418,961 | 10.3% | $36,304 |
| $418,962–$698,271 | 11.3% | $67,867 |
| $698,272–$1,000,000 | 12.3% | $104,979 |
| $1,000,001+ | 13.3% | Highest in nation |
Tax Impact Examples
$100,000 salary: ~$5,700 CA state tax (5.7% effective rate) + federal taxes
$150,000 salary: ~$10,400 CA state tax (6.9% effective rate) + federal taxes
$250,000 salary: ~$19,500 CA state tax (7.8% effective rate) + federal taxes
$500,000 salary: ~$45,000 CA state tax (9.0% effective rate) + federal taxes
High earners considering relocation to no-tax states (Texas, Florida, Nevada, Washington) can save $20,000–$100,000+ annually in state taxes alone. However, this calculation should include California's superior public services, climate, and job market density.
Highest Paying Jobs in California 2025
| Occupation | CA Average | Top 10% |
|---|---|---|
| Anesthesiologist | $350,000 | $450,000+ |
| Surgeon | $320,000 | $500,000+ |
| Psychiatrist | $300,000 | $400,000+ |
| Tech Executive (VP+) | $350,000 | $500K–$1M+ TC |
| ML/AI Engineer (Senior) | $250,000 | $400K–$700K+ TC |
| Software Engineer (Staff) | $220,000 | $350K–$500K+ TC |
| Investment Banker (Director) | $250,000 | $400,000+ |
| Attorney (Big Law Partner) | $400,000 | $1M–$3M+ |
| Dentist (Specialist) | $200,000 | $350,000+ |
| Pharmacist | $140,000 | $170,000+ |
California's highest salaries concentrate in medicine, technology, law, and finance—all benefiting from the state's premium pay scale. For comprehensive lists, see highest paying jobs 2025 and jobs that pay $100K.
California Minimum Wage 2025
| Jurisdiction | Minimum Wage | Notes |
|---|---|---|
| California (Statewide) | $16.00/hr | Highest statewide minimum |
| San Francisco | $18.67/hr | Local ordinance |
| Los Angeles | $16.78/hr | Local ordinance |
| San Jose | $17.55/hr | Local ordinance |
| Oakland | $16.50/hr | Local ordinance |
| Fast Food Workers | $20.00/hr | AB 1228 (2024) |
| Healthcare Workers | $18.00–$23.00/hr | SB 525 (phased) |
Fast Food and Healthcare Minimums
California made headlines in 2024 with sector-specific minimum wages. Fast food workers at chains with 60+ locations now earn $20.00/hour minimum—the highest industry-specific minimum in the nation. Healthcare workers at certain facilities earn $18.00–$23.00/hour depending on facility type, with scheduled increases to $25.00/hour by 2028.
At $16.00/hour statewide, California's minimum wage translates to $33,280 annually (40 hours/week)—significantly above federal minimum but still challenging for housing affordability in most California metros.
Remote Work and California Salaries
The remote work revolution significantly impacted California's salary landscape. Many tech workers relocated to lower-cost areas (Austin, Denver, Phoenix, even abroad) while initially retaining California salaries. However, most major employers have now implemented geographic pay adjustments:
Big Tech Policies (2025)
Google: Pay adjustments of 5–25% for relocating outside Bay Area
Meta: Location-based pay bands with Bay Area at top
Apple: Primarily requires office presence; remote exceptions adjusted
Salesforce: Flexible location policy with moderate adjustments
Startups: Increasingly offering "location-agnostic" pay to compete for talent
Workers in California metros benefit from proximity to headquarters, networking opportunities, and access to the full range of tech salaries. Those seeking remote positions may find some salary reduction but substantial cost-of-living savings. See our remote job salary guide for details.
Frequently Asked Questions
Is California worth it for the higher salary?
Depends on your field and career stage. For tech, finance, entertainment, and biotech—California offers unmatched opportunities, networking, and career growth that may justify the premium cost. For fields with similar salaries nationwide (many remote roles, government), other states may offer better value. Early career professionals often benefit from California experience before potentially relocating.
How much do I need to earn to live comfortably in California?
Varies dramatically by location. Single person comfortable living: Bay Area $120,000–$150,000+, LA $90,000–$120,000, San Diego $80,000–$100,000, Sacramento $70,000–$85,000. Families with children (housing, childcare) need roughly $200,000+ household income in Bay Area, $150,000+ in LA for middle-class lifestyle.
Should I move to California for a job offer?
Compare total compensation (including equity, benefits) to cost of living, not just base salary. A $150,000 Bay Area offer may provide worse quality of life than a $100,000 offer in Austin or Denver. However, California experience on your resume, particularly from top companies, often enables higher future earnings nationwide.
What's the real tax burden in California?
Combined federal + CA state taxes take roughly 30–40% of income for typical professionals ($100K–$300K range). A $200,000 earner might pay ~$15,000 in CA state tax alone—$15,000 more than they'd pay in Texas, Florida, or Washington. However, California's services (schools, infrastructure, healthcare programs) are generally superior.
Are California salaries inflated?
Yes, by design. Salaries reflect the cost of living premium required to attract talent. However, for certain fields (tech, entertainment), California salaries also reflect genuine market power—the concentration of opportunities creates competitive pressure that elevates pay beyond pure cost-of-living adjustment.