Cost of Living In Palm Springs, CA

Palm Springs stretches across the Coachella Valley like a sun-soaked welcome mat, and its endless sunshine, short commutes, and steady flow of visitors all influence day-to-day costs.

The guide below breaks down key expenses such as housing, taxes, utilities, groceries, and transportation, then compares those figures to national averages so you can plan a budget or salary that matches the lifestyle enjoyed beneath the city’s iconic palm trees.  

Homes for sale in Palm Springs generally list above the national median, yet prices vary by neighborhood, property style, and lot size.

Market reports for mid-2025 show most closings landing between $620,000 and $650,000, while well-preserved mid-century homes or properties with mountain views can reach well past $1 million.

Those figures ripple through any monthly budget. A 20% down payment on a $630,000 purchase comes to about $126,000, and a conventional loan at current interest rates places principal and interest near $3,400 per month before taxes, insurance, and maintenance.

Buyers aiming for a lower entry point often look to smaller condos, fixer-uppers, or areas farther from Downtown, though Palm Springs’ limited inventory keeps competition steady year-round.

The most recent trackers show average monthly rent in Palm Springs ranges from roughly $1,500 for smaller units up to $2,000–$3,000, depending on neighborhood and size.

Differences in rent figures reflect sample size (apartments versus single-family rentals) and seasonality in a resort market. Expect to budget for a higher monthly rent than the national average in many parts of the city, especially if you want a two-bedroom or a property close to downtown.

California uses a progressive state income tax that ranges from 1% to 12.3%, with an additional 1% surtax on taxable income above $1,000,000. Most local households land in the 6% to 9.3% brackets, so paycheck withholding depends on filing status and total earnings.

Sales tax layers stack up, too. The statewide base is 7.25%. Riverside County adds 0.5% for transportation, and Palm Springs has its own 1% district measure, bringing the combined rate in city limits to 8.75% as of July 2025. Grocery staples remain exempt, while prepared food and most retail purchases are fully taxable at this rate.

Several smaller levees can pop up. The city charges an 11.5% transient occupancy tax on stays shorter than 28 days, something to note if you plan short-term rentals. 

Palm Springs sits within Riverside County, and the county’s baseline property tax rate usually lands just under 1% of a home’s assessed value.

For a freshly purchased home priced at $600,000, that means roughly $6,000 a year before any local assessments for schools, parks, or special districts get added. Buyers often find smaller add-ons on the tax bill for things like flood-control projects or community services, so it is smart to look at the parcel report before closing.

Long-time owners sometimes pay less because California’s Proposition 13 limits yearly increases in assessed value, but new buyers should budget for taxes based on the sale price plus whatever local assessments apply.

Summer heat is the biggest driver of utility costs in Palm Springs. Households running air conditioning can see electric bills climb to $300–$400 in July and August, while milder spring and fall months often fall closer to $150–$200.

Water and sewer service from Desert Water Agency or Coachella Valley Water District usually adds $60–$90 per month for a single-family home.

Internet packages from major providers range from $60–$80, trash collection averages about $25, and many homes budget roughly $15 for natural gas used mainly in winter.

Put the pieces together, and a typical Palm Springs household spends $250–$500 per month on utilities, with the higher end reflecting peak summer cooling and larger lots with pools or lush landscaping.

Grocery and food average costs in Palm Springs tend to be higher than the U.S. average. Broad cost-of-living calculators and local price surveys put groceries roughly 15–20% above typical national levels.

To budget, use USDA food plan benchmarks for baseline per-person monthly grocery costs (thrifty, low-cost, moderate, liberal) and then apply a local premium to reflect Palm Springs retail pricing trends.

A single adult following a moderate grocery plan will need to add a city premium to the USDA baseline to estimate the average monthly grocery expense here.

Drivers in Palm Springs pay California fuel prices, which averaged about $5.50 per gallon in mid-2025.

A commuter covering 1,000 miles a month in a vehicle that gets 25 miles per gallon spends roughly $220 on gas.

Add insurance, maintenance, and a prorated share of the $200 annual registration fee, and car ownership often lands between $400 and $600 per month.

Occasional ride-share trips and parking downtown add a little extra, but even frequent transit riders can keep monthly transportation costs under $60 if they limit driving.

Median household income for Palm Springs is reported to be around $71,979.

This median helps benchmark how much income households locally earn versus housing and other costs. If your household income is well below the median, housing expenses will consume a larger share of take-home pay.

Home values here generally trend higher than markets such as Cathedral City or Indio, thanks to strong second-home demand and limited buildable land inside city limits. Buyers looking at median listings near $600,000 should factor location, lot size, and architectural style into their comparisons.

Electricity rates in summer and grocery bills often catch people off guard. Fuel costs can also feel steep compared with nationwide averages, so those items deserve extra attention when setting monthly allowances.

Because overall costs run about 15%–25% above the national index, many financial planners suggest earning at least $85,000 for a single occupant or $110,000 for a two-adult household to cover typical expenses and still save for long-term goals. Individual needs vary, so revisit these targets if you carry debt or have dependents.

Riverside County falls in the middle of the pack. The county’s effective rate usually hovers near 1% of a home’s assessed value, while California’s statewide average is closer to 0.8%. On a $600,000 purchase, that works out to roughly $6,000 each year before any voter-approved assessments. 

Yes, for residents living near SunLine routes. A $30 monthly pass covers unlimited rides, which is far less than the combined cost of fuel, insurance, and maintenance for a personal vehicle. Occasional rideshares can fill gaps without erasing those savings.

Plan on an extra $150–$200 during peak summer months when air conditioning runs nonstop. Seasonal tourism can also nudge restaurant and service prices upward, so keeping a small buffer in the budget prevents surprises.