California · Population 990,054 · Updated March 2026
How far your income goes in San Jose
State-level tax rates that affect your costs
San Jose has a significantly higher cost of living than most US cities, driven largely by premium housing costs. With a cost index of 254 (where 100 equals the national median), San Jose residents can expect to pay median rent of $2,617/month while earning a median household income of $141,565/year.
The median home value in San Jose, CA is $1,187,800, with typical monthly owner costs around $2,775 including mortgage, insurance, and taxes. The median rent-to-income ratio of 22.2% means housing is relatively affordable here — well below the 30% threshold that HUD considers cost-burdened.
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 San Jose.
Common questions about living costs in San Jose
Similar-sized cities to compare
Compare the cost of living in San Jose, CA with 299 other major U.S. cities