If Your Household Makes This Much Income In California, You're Officially 'Upper Class'

The great state of California is the stuff of dreams and fantasies. So many people think about this enormous West Coast haven of activity as a leisurely playground. Here, residents up and down the coastline can bask in the sunshine, take in spectacular live music, and cheer on a laundry list of (frequently super-competitive) professional sports teams. Living in California is seen as a means of unlocking a uniquely laid-back lifestyle that's uber-rewarding and brings about an immense blend of relaxation and fun.

Of course, there's the financials to think about when exploring any lifestyle that may be had in California. On top of the fact that the 31^st state features a cost of living roughly 45% higher than the national average, the financial landscape of the state is actually just as varied as its climate and topography. Urbanites in communities like Beverly Hills or San Francisco will naturally see their spending power decreased when compared to less expensive and rural parts of the state (Bakersfield, or Eureka, for instance). This is obviously a feature that must be taken into consideration, but statewide data provides a wonderful starting place when exploring just what it means to find yourself in the "upper class" among Californians. Here's the cutoff for a high-end paycheck among those calling "The Golden State" their home.

An upper-class salary in California reaches up quite a bit higher than the national average (sitting at about $170,000). To be considered among the highest earners in the state, you'd need a household income of $192,668 or more. It's worth noting that many of high-paying jobs that can deliver these kinds of income figures to single earners are found within the medical field. That means you'll need to commit to a lengthy course of study and plenty of hard work to build your resume as a student, resident, and then an early-career practitioner.

On the other hand, household income is not something that is only shouldered by one person in many scenarios. Plenty of blue collar jobs pay in the six-figure range, and a life partnership featuring two well-paying professions can add up to an upper class take home figure with ease. The average salary in America is roughly $67,000, so two earners would need to each make about 44% more than average to achieve this goal—interestingly enough, almost exactly the same as the cost of living adjustment California experiences over the national average.

While the California average stands as a solid guidepost for exploring what it means to be a high earner in the state, there's a lot more to consider and a deeper dive is necessary. For those thinking about a job offer or a more general move to experience the California lifestyle for themselves, location is everything. Depending on where you intend to land, your buying power may be expansive with a salary in this range, or surprisingly limited. Earners around the $200,000 mark will actually find it hard to manage their day to day needs in a place like San Francisco, one of America's most expensive urban oases.

The median house price in the city is $1.3 million, and rent averages at just under $3,500 per month across all property types. The typical joint filer earning a household income right at the threshold will pay roughly $40,000 in income tax (for 2024), leaving a net monthly figure of around $11,700. This means that an average rental property will demand 30% of your budget, and even a slight upgrade could send you into dangerous waters. A 30% figure acts as a general rule of thumb and should be the cap on this cost for many people's housing expenses. For those with large credit card debts, expensive student loan repayments, or medical bills to manage, housing costs should be even lower. Unfortunately, housing is only the beginning, and residents of San Francisco can expect to pay almost 50% higher rates for utilities and 22% more than the national average on groceries.

Exploring the unique curvature of the California marketplace reveals another detail about upper-class lifestyles that may not be obvious at first. A $200,000 salary sounds like a fabulous amount of money. With that figure in tow, many people across the country could easily buy themselves a far more comfortable lifestyle. But salary is just one side of the coin. What you choose to do with your earnings dictates the kind of life you will lead. Those who squander their salaries on trivial spending habits or dig themselves into debt while chasing after extravagant experiences are found across the spectrum of paycheck values. High earners and those with low incomes can equally find themselves lacking fiscal mobility as a result of their financial choices and a series of unfortunate breaks that are out of their control.

A high income acts as a key to the door of upper class living. But once you start making this kind of money, the responsibility fall to you. Upper class incomes deliver greater mobility when it comes to paying off debts, investing in the future, and funding present day experiences. However, to fully take advantage of these incredible monetary benefits, you'll need to carefully and responsibly manage your fiscal life. A mortgage or rent bill that eats up too much of your income or revolving credit card debt that lessens the impact of monthly salary checks can really drive down the value of even the highest earnings figures.