Sacramento, CA Cost of Living (2026)

Sacramento has a cost of living index of 122, about 22% above the national average. The housing index is 158. A one-bedroom apartment in Sacramento rents for roughly $1,400 to $1,900 per month, and median home prices sit around $500,000. The median household income is approximately $78,000. Compared to the Bay Area cities just 90 miles away, Sacramento looks affordable in absolute terms. Compared to the national average, it carries a real cost premium.

For someone coming from an average-cost city, a $100,000 salary is worth about $82,000 in Sacramento. That's a noticeable drop but significantly better than the Bay Area or Southern California. Many Sacramento residents work remotely for Bay Area employers while living in Sacramento, effectively arbitraging the distance. At current housing prices, that trade can mean $800 to $1,500 less per month in rent or mortgage costs compared to San Jose or San Francisco equivalents.

California's income tax applies throughout the state, and Sacramento is no exception. The income tax structure is the same whether you live in Sacramento or San Francisco: a progressive rate that reaches 13.3% at the highest bracket and 9.3% for income between roughly $67,000 and $338,000 for single filers. Workers moving from other states often find this to be the sharpest adjustment, as state income taxes here are among the highest in the country.

One specific cost element in Sacramento is air conditioning. The Central Valley climate brings extended hot spells from June through September, and homes without efficient cooling systems can generate high electric bills. Pacific Gas & Electric rates in the region are among the higher utility rates in California, and summer electricity costs can run $200 to $350 per month for a standard apartment. That's a real cost that doesn't show up in rent comparisons.