California · Population 52,689 · Updated March 2026
How far your income goes in Novato
State-level tax rates that affect your costs
Novato has a significantly higher cost of living than most US cities, driven largely by premium housing costs. With a cost index of 225 (where 100 equals the national median), Novato residents can expect to pay median rent of $2,422/month while earning a median household income of $112,193/year.
The median home value in Novato, CA is $1,007,100, with typical monthly owner costs around $2,576 including mortgage, insurance, and taxes. With a rent-to-income ratio of 25.9%, Novato 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 Novato.
Common questions about living costs in Novato