Incomes are higher in California than elsewhere—particularly for top earners.

California families had a median income of $127,000 in 2024 (the most recent data available), slightly higher than in the rest of the US ($120,000).
The lowest-income families, at the 10th percentile, had $33,000, the same as the rest of the US. Top incomes, however, are much higher here: the 90th percentile is $356,000 ($307,000 in the rest of the US).
Earnings from salary and wages account for 88% of total income among families with earnings (who comprise the vast majority of California families). However, families headed by adults ages 65 and up rely more on retirement savings or Social Security than earnings. And 99% of the highest-income families have income from sources like businesses, investments, and real estate, compared to 38% of the lowest-income families.

Income inequality remains near historic highs.

In 2024, California families at the 90th percentile of the income distribution earned 11 times more than families at the 10th percentile. Eight other states had wider income gaps.
The gap between top and bottom incomes in California has increased substantially (by 57%) since 1980, when families at the top earned seven times more than those at the bottom. This reflects 72% income growth for the 90th percentile, and 19% growth for the 10th percentile.
Since 2008, income inequality has remained high, despite some narrowing after the Great Recession and between 2016 and 2019, when the economy was growing rapidly.

Strong growth among the highest incomes has widened the gap between the top and all other incomes. This reflects shifts in technology and international trade that have reshaped jobs and created advantages for college-degree holders.
Middle incomes have seen multiple periods of stagnation. Since reaching a low during the Great Recession, median income has grown substantially—increasing about $10,000 (after inflation) between 2023 and 2024.
Only in recent years have low incomes in California surpassed their 1980 levels. Between 2023 and 2024, a $2,400 (or 8%) increase in income brought the 10th percentile back to its pre-pandemic level.
Despite recent income increases, inflation acceleration since 2021 has cut into gains for families at all income levels. Inflation hit low-income families the hardest due to the rise in prices for essentials like housing, food, transportation, and health care, which make up 82% of spending for low-income families (65% for high-income families).

In 2024, median income was higher for Asian ($153,000) and white ($150,000) families than for Black ($99,000) and Latino ($88,000) families.
Families of four-year-degree holders have substantially higher incomes than others ($195,000 vs. $85,000).
Families headed by men have higher incomes than those headed by women ($130,000 vs. $110,000).
At the regional level, median incomes are highest in the Bay Area ($166,000) and lowest in the northern and Central Valley and Sierras regions (about $90,000).
Overall, the highest-income families in California are disproportionately Asian and white, tend to reside in the Bay Area and other coastal regions, and are headed by college-degree holders. The lowest-income families tend to be Black and Latino, and are disproportionately headed by women, young adults under 25, and those without college degrees.

Families in the bottom quarter of California’s income distribution fall below or are at risk of falling below the poverty threshold (about $40,000 per year for a family of four).
The combination of taxes, tax credits, and safety net resources narrows the gap between top and bottom incomes by 52%, according to the California Poverty Measure (as of 2023, when some pandemic expansions to food assistance were still in place).
State policy on education and training, employment, housing, taxation, and the safety net could further reduce inequality by both increasing opportunity and ensuring basic needs—although these policies often have significant costs and tradeoffs.
Californians are concerned about economic inequality. According to the PPIC Statewide Survey, 72% believe that the gap between the rich and poor is widening, and a similar share think state government should do more to reduce the gap. At least six in ten across regions and demographic groups say the government should do more, but partisans are sharply divided (Democrats 86%, independents 68%, Republicans 38%).