California Middle-Class Income Range Rises Reaching $60,000–$180,000

Among Highest in the Nation as Housing, Living Costs Soar
Wide Regional Gaps Seen in San Jose, Irvine and Other Coastal Cities
“High-Income Middle-Class Poverty” on the Rise

The income threshold required to be considered middle class in California has risen again for 2026, underscoring how soaring housing and living costs continue to reshape economic reality in the state.

Analysts note that salaries considered upper-income in many other states are no longer sufficient to maintain a middle-class lifestyle in California, where basic living expenses far exceed the national average.

According to criteria set by the Pew Research Center, the middle class is defined as households earning between two-thirds and twice the median household income in a given region. Applying that standard to California, where the projected 2026 median household income is approximately $91,905, places the middle-class income range between $61,269 and $183,810 annually. Households earning below that range are classified as lower income, while those above it are considered high income.

This threshold ranks among the highest in the nation. Only a handful of states — including Maryland, New Jersey and Massachusetts — report comparable middle-class income standards.

Within California, however, disparities are striking. In San Jose, which includes much of Silicon Valley, the middle-class income range spans $90,810 to $272,458. In San Francisco, the range is $84,478 to $253,460, while in Irvine and other parts of Orange County it stands at $85,317 to $255,978. Coastal metropolitan areas with dense concentrations of high-paying technology, finance and professional jobs continue to push income benchmarks sharply higher.

A recent California cost-of-living report released by a public policy research group found that a three-person household earning $130,000 annually pays an additional $29,753 per year compared with the national average. Higher housing costs, utilities, groceries, transportation, healthcare, childcare and taxes all contribute to the gap.

Overall, California’s cost of living is estimated to be about 40% higher than the national average. Housing costs are particularly burdensome, running 124% above national norms. Utilities cost 34% more, while grocery prices are about 14% higher.

Experts emphasize that housing costs are the single most decisive factor shaping middle-class stability. Homeowners who purchased properties during the era of historically low interest rates have largely been shielded from recent price spikes. In contrast, new homebuyers and renters face sharply higher mortgage payments and rents. In some major metropolitan areas, even households earning $150,000 per year struggle to cover housing and basic expenses.

Reflecting these realities, California’s state-funded Middle Class Scholarship program set its income eligibility cap at $250,000 for the 2026–27 academic year — an acknowledgment that even families labeled “high income” may remain financially vulnerable when education costs are factored in.

Pew Research data show that the share of Americans considered middle class declined from 61% in 1971 to about 51% in 2024. California exemplifies this polarization, where ultra-high-income households coexist with low-income populations, while the traditional middle class continues to shrink.

Economists warn that California is witnessing the expansion of what they describe as “high-income middle-class poverty” — households earning strong salaries on paper but living paycheck to paycheck with limited savings.

“In California, being middle class is no longer defined by income alone,” experts said. “Location, household size and homeownership status now play an equally critical role, leaving many high earners financially stretched despite their earnings.”