The California Sun Tax and How I Break it Down


california sun taxAfter living in San Diego for almost two years now, I can confidently say that it’s expensive to live in California.   No, not as bad as San Francisco or Los Angeles, but still a bit pricey.   I call the extra living cost the California Sun Tax.â

As funny as that name sounds, it’s not funny when you see it take a toll on your wallet.   Don’t get me wrong, I love the SoCal lifestyle but it does take a bit more in terms of regular income.

This sun tax❠as I call it, breaks down into five major areas.   These are areas that I have personally felt since moving to San Diego from Seattle.

Higher Rent

I felt this the moment I moved down to San Diego.   Across the board, you will pay a hefty price for monthly rent in San Diego.   For a two bedroom condo near downtown will run you close to $2,000 per month while this price will go down to around $1,500 in the suburbs.   Compared to my buddies in other states, it seems like San Diego is somewhere between the cheaper rental states and Los Angeles.   Notice I didn’t compare it to San Francisco.   This is because the rental prices in the bay area are easily double what San Diego prices are.   So it’s hard to compare since I’m writing this from a San Diego perspective.

Expensive car insurance

California is a pure driving state.   If you don’t have a car, you’re just never going to get around.   The mega highways in San Diego still blow me away.   Be prepared to drive and easily go through a tank of expensive gas in a week or less!   Things in California are spread out for the most part so car insurance companies know this fact.   Since you will be driving more compared to other states, you’re more likely to get into an accident.   This causes your car insurance premium to go up substantially.   The key to saving on car insurance is to shop around!

Higher gas prices

Gas prices are a notch higher than the U.S. average and seem to always stay that way.   We are also the ones to get hit with the first wave of gas price increases.   It’s not pretty but you definitely need to look around your city in California for the cheapest gas prices.   I personally use Gas Buddy to help me save some hard earned dollars.   I hate spending extra money on gas!

State income tax

As if federal income tax was not painful enough, California has a high state income tax.   Don’t you just love taxes?   That was sarcasm⦠  I’ve seen this state income tax take a nice chunk out of my weekly paychecks for a while now and I cry every time I see it.   There is no escaping higher tax in California.   Who’s going to pay for their exploding deficit? Me and the other Californians!

More things to do❠factor

Compared to the rest of the United States, there are an insanely crazy number of things to do in California!   Due to this fact, it makes it super easy to give in to friends wanting to go boating or paintballing.   I always catch myself giving into doing something when I know I should be really saving my money.

California loves to take my money

To conclude, I hope I’ve done a great job at explaining why people complain about the cost of living in California.   When you have a friend complain, sympathize with them because it really is more expensive to live here!

But here’s the thing: even though I hate the sun tax, California will always be my favorite state in this amazing union!   Cali for life, who’s with me?!

photo by jackatothemon

Written by Jon the Saver

This post was written by yours truly, Jon Elder. My mission is to help you succeed in your personal finance life. Join me on the journey to financial freedom! You can subscribe through RSS FEED or EMAIL updates. You can also find me on TWITTER
and FACEBOOK
. Happy investing 🙂

Jon the Saver

This post was written by yours truly, Jon Elder. My mission is to help you succeed in your personal finance life. Join me on the journey to financial freedom! You can subscribe through RSS FEED or EMAIL updates. You can also find me on TWITTER and FACEBOOK . Happy investing 🙂

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