Average Salary in California

State of United States · Data verified 2026-01-01

Minimum wage

$16.90 /hr

Average salary $7,200 /mo

+ 133% vs United States national rate #4 of 56 state Since 2026-01-01

With a population of 39.4 million, California is a state of United States whose economy centers on technology and entertainment. Its minimum wage of $16.90 per hour is 133% above the national rate. Workers earn an average gross salary of $7,200 per month. The cost of living is 11% above the national average. The median household income is $91,905 per year.

• AT A GLANCE

Rank: #4 of 56; state
vs National: +133%; United States floor
Annual (est.): $35,152; full-time, before tax
Change Since 2019: +41%; nominal wage

About the California economy

California sets the highest statewide wage floor among the large United States economies. The general minimum wage is $16.90 per hour for all employers, effective January 1, 2026, up from $16.50 in 2025. Since the state reached its $15 target, the rate adjusts automatically each year. The Labor Commissioner's Office ties the annual change to the national Consumer Price Index for urban wage earners and clerical workers, with the increase capped at 3.5 percent in any single year and no decrease permitted when prices fall. The floor also drives the exempt salary threshold, which reached $70,304 per year for 2026. Two sector-specific minimums sit above the general rate. Fast food restaurant workers at chains with at least 60 nationwide locations must be paid $20.00 per hour, effective April 1, 2024 under Assembly Bill 1228. Covered health care facility workers earn a phased minimum that varies by facility type, set at $24 per hour for large hospital systems and dialysis clinics from July 1, 2025, rising to $25 per hour on July 1, 2026, while smaller clinics and safety-net hospitals follow lower schedules that climb to $25 per hour over a longer horizon.

Many California cities and counties set local floors above the state rate, and most of them index annually. The City of Los Angeles raised its general minimum wage to $18.42 per hour, effective July 1, 2026. Berkeley set its floor at $19.61 per hour, effective July 1, 2026. San Francisco raised its minimum wage to $19.61 per hour on the same date. These local ordinances mean the wage a California worker is legally owed depends on the city, the county, and the industry, not only on the statewide number.

California wages run well above the national average. The state recorded an average weekly wage of $1,933 in the first quarter of 2025, a 5.7 percent gain over the prior year, compared with a national average of $1,592. Pay is concentrated in the coastal technology and professional-services hubs, where San Mateo, Santa Clara, and San Francisco counties post some of the highest county wages in the country. High pay is partly offset by high prices. California carried the highest cost level of any state, with a regional price parity of 110.7 in 2024, meaning prices ran about 10.7 percent above the United States average. A California paycheck therefore buys less locally than the same nominal figure would in a lower-cost state.

• SECTOR RATES

Fast food workers

$20 /hr

Since 2024-04-01

AB 1228 - applies to fast food restaurant chains with 60+ locations nationally.

Healthcare workers (large facilities)

$25 /hr

Since 2024-06-01

SB 525 - phased increases for healthcare facility employees. Rate varies by facility type and size.

Wage Breakdown

Hourly: $16.90
Monthly: $2,929.28 Based on 173.33 hours/month (40 hrs/week)
Annual: $35,152 Based on 2,080 hours/year

Applies to all employers regardless of size. California's rate is more than double the federal minimum of $7.25. CPI-indexed annually.

At this rate, a full-time worker earns approximately $35,152 /yr before tax. Whether that covers living costs depends on local prices. See United States purchasing power context.