A p
Lv 5
A p asked in TravelUnited StatesLos Angeles · 7 years ago

Just how expensive is it to live in LA/CA in general?

Let's say you make $50,000/year living in Los Angeles. In an imaginary world where taxes are your only expense, how much do you take home? Next, how high are gas prices above the national average? Are there any other expenses that stand out as significantly higher than outside of CA?

BQ: Supposedly, CA is about the worst place to start a business. I can't help but wonder if that's somewhat subjective though. What makes it so difficult?

I know this isn't entirely travel related but people ask "can I move there" questions all the time. This all hypothetical, but I am curious all the same.

4 Answers

Relevance
  • 7 years ago
    Favorite Answer

    If you have a $50,000 income = about 7.5% would go for state taxes; federal taxes would be the same.

    Gas prices = there is a big difference between SoCal and NorCal gas ~ NorCal is usually about 40+ cents more.

    - this week SoCal gas is hovering around $4 a gallon. You can research the national average, since it's really meaningless to me.

    Housing is obviously more expenses than most places. In the Y!A Business Section, the other day there was a question that said "in LA when rent is advertised as $1800, that's for the whole year, right?"... NO.

    It depends what type of business you are starting = if you are operating as a sole proprietor with no employees ~ you probably won't have any other taxes than you would in another state, except the state income tax will be higher than average.

    - If you are a corporation, there is a minimum corporate tax starting at $800 even if you make NOTHING.

    - if you have employees, you would have additional taxes

    - and you have more business regulations in California, related to air quality and things like that. For example: clothing lines have to have special certification including health certificates.

    OBVIOUSLY there are many large businesses that are headquartered in California = 54 of the Fortune 500 are in California. Yes, a lot of this is tech, but it's also retail, insurance, healthcare, oil, and many other. Plus you have the entertainment giants...

  • 7 years ago

    $50,000 a year net is about $3050 a month for a single, just deducting taxes (IRS and state), and things that must be deducted, like social security and medicare. That doesn't include other typical deductibles like health insurance.

    Paycheck calculator http://www.paycheckcity.com/calculator/salary/

    Generally almost everything is more expensive in California. Housing is significantly more in Los Angeles than just about everywhere, except for Boston, San Francisco, DC, and NYC. Housing can easily cost / rent for twice as much as it does in cities where the wages are not much less than (or the same as) in LA.

    California is a pain to do business in because the costs are high, from rent to workers compensation and taxes.

    Businesses typically need a state and at least one local city permit/license (could be more than one, depending on type of business, if you do any business in other cities), and fees and taxes are paid to all. Often there are more regulations in CA than in other areas of the country, and they can end up being costly. In California there are actually state employees who go to small businesses and count employees and make sure that you're paying taxes for all. Once I called about opening a new business and when tax time came around, I received a letter asking why I wasn't paying taxes for my employees for my new business, which I hadn't opened or even applied for a license yet. (And they have my other business records showing I always pay my taxes, etc.)

    Promising Businesses a Better Life Elsewhere

    States Are Sending Recruiters to California to Lure Companies With the Prospect of Lower Taxes and Fewer Regulations

    http://online.wsj.com/article/SB100014241278873246...

    Good luck!

  • 7 years ago

    It is possible to live in Los Angeles on $50,000 a year.

    No, not supposedly. It IS the WORST state in the United States to start a business. What makes it unfriendly is the amount of costs and taxes the state expects for you to keep the business running, which in the end almost makes it not worth owning.

  • John
    Lv 7
    7 years ago

    Most variable question you could ask.

Still have questions? Get your answers by asking now.