California · Population 89,766 · Updated March 2026
How far your income goes in Merced
State-level tax rates that affect your costs
Merced has a cost of living close to the national average, offering a balanced mix of expenses and amenities. With a cost index of 99 (where 100 equals the national median), Merced residents can expect to pay median rent of $1,293/month while earning a median household income of $59,938/year.
The median home value in Merced, CA is $347,700, with typical monthly owner costs around $1,352 including mortgage, insurance, and taxes. With a rent-to-income ratio of 25.9%, Merced falls within the generally affordable range, though it's approaching the 30% burden threshold.
California's top income tax rate of 13.3% is among the highest in the nation, adding to the overall cost burden. Combined with a 7.25% sales tax rate and 0.71% effective property tax rate, the overall tax environment is a factor in the total cost of living in Merced.
Common questions about living costs in Merced