Raleigh vs Sacramento: cost of living compared
Sacramento is 28% more expensive than Raleigh overall. State income tax tops out around 4.5% in NC vs 9.3% in CA.
Indexes use a US average of 100: below 100 is cheaper than the national average. Housing and transportation are derived from median home prices, rents and commute times; figures come from BLS, Census ACS, Numbeo and the MIT Living Wage Calculator.
The big picture
Raleigh generally offers a cost of living that aligns closely with the national average, making it a more budget-friendly option. Sacramento, in contrast, is noticeably more expensive across the board, with its overall cost of living significantly higher than the national benchmark. This substantial difference is primarily driven by the higher housing costs in Sacramento, which create a considerable gap in expenses between the two metros.
Housing
Housing costs are considerably higher in Sacramento, whether you're looking to buy a home or rent a one-bedroom apartment. The median home price in Sacramento is substantially greater, and monthly rents also reflect a significant premium. Raleigh's housing market is more accessible, with both home prices and rental rates being notably lower. Both metros feature a mix of housing types, but the financial commitment for shelter is much more substantial in Sacramento.
Taxes and everyday costs
Daily expenses for transportation, food, healthcare, and utilities are all more expensive in Sacramento compared to Raleigh. Additionally, California's state income tax rate is considerably higher than North Carolina's, impacting disposable income. This means that routine spending on groceries, medical care, and getting around, combined with a larger tax burden, will result in a noticeably higher monthly outlay in Sacramento.
Lifestyle trade-offs
Raleigh, situated in the humid subtropical climate of the Southeast, experiences warm summers and mild winters, with a generally greener landscape. Sacramento, in California's Central Valley, has a Mediterranean climate with hot, dry summers and mild, wet winters. Both metros are car-dependent, but Sacramento's average commute is slightly longer. Raleigh often feels more spread out, while Sacramento can have a slightly denser urban feel in its core.
Bottom line
Moving from Raleigh to Sacramento would entail a significant increase in your household budget, primarily due to much higher housing costs and a steeper state income tax. Conversely, a move from Sacramento to Raleigh would likely free up substantial funds, as nearly all categories of expenses, from housing to daily necessities, are more affordable. Your financial planning should account for these considerable differences in cost when weighing a relocation.
| Measure | Raleigh, NC | Sacramento, CA |
|---|---|---|
| Overall cost of living (US avg = 100) | 100 | 128 |
| Housing index | 106 | 132 |
| Transportation index | 97 | 110 |
| Food index | 95 | 108 |
| Healthcare index | 95 | 108 |
| Utilities index | 98 | 125 |
| Misc index | 90 | 105 |
| Median home price | $388,000 | $498,000 |
| Median 1-bedroom rent | $1,500/mo | $1,750/mo |
| Average commute | 27 min | 30 min |
Compare any two metros with the free cost of living tool, or see the true monthly cost of a specific Sacramento home with the True Cost Calculator.