The short version
- Social Security taxed?
- No
- Income tax
- Brackets 1%–13.3%
- Property tax on a $300,000 home
- ≈ $2,100 / yr ($175 / mo)
- Everyday cost index (U.S. = 100)
- 142
- January / July high
- 68°F / 84°F
- Sales tax (state + local avg)
- 9.03%
Retiring in California
The best weather in America and Social Security is untaxed. Watch out: the highest living costs in the mainland US and full tax on pensions and IRA withdrawals.
How California taxes your retirement income
Social Security: not taxed at all.
Pensions: Pensions taxed as regular income.
401(k) and IRA withdrawals: 401(k)/IRA withdrawals fully taxed.
The setup: Brackets 1%–13.3%.
Property tax & senior breaks
The average effective property tax rate is about 0.70% — roughly $2,100 a year ($175 a month) on a $300,000 home. Your county sets the real number.
Help for seniors: Proposition 13 caps assessment growth at 2% a year until the home is sold.
Try your own home value in the Property Tax Estimator.
Everyday costs & sales tax
Overall cost of living runs about 42% above the U.S. average. The combined state and average local sales tax is 9.03%.
Weather
January days top out around 68°F and July days around 84°F, with roughly 263 sunny days a year. Watch out for: Wildfires, drought, and earthquakes; coastal weather is mild.
Healthcare
World-class academic medical centers; costs and waits vary by region.