The minimum wage in San Jose is $17.95/hour in 2026. See how it compares to the MIT living wage of $30.55/hour and local cost of living.
Last updated: May 2026 · Data: MIT Living Wage Calculator, C2ER, U.S. Census, BLS, IRS, state and city sources
Calculate annual, monthly, and weekly income at any hourly wage in San Jose.
San Jose sets a local minimum wage of $17.95/hour, above the California statewide minimum of $16.90/hour. The City of San Jose sets a local minimum wage above the California state minimum and indexes it to the Bay Area consumer price index each January. The bigger question for most workers is how that compares to what it actually costs to live in San Jose. With average 1-bedroom rent near $2,700/month and a cost-of-living index of 177 (US average = 100), the gap between the minimum wage and a true living wage is significant.
| Benchmark (San Jose, 2026) | Hourly | Annual (full-time) |
|---|---|---|
| Applicable minimum wage | $17.95 | $37,336 |
| MIT living wage (single adult) | $30.55 | $63,544 |
| MIT living wage (family of four, one earner) | $52.30 | $108,784 |
| Federal minimum wage | $7.25 | $15,080 |
| California state minimum wage | $16.90 | $35,152 |
| Average rent (1-bedroom, annual) | - | $32,400 |
Living wage figures: MIT Living Wage Calculator for Santa Clara County. Minimum wage reflects the rate applicable to most private employers in San Jose.
San Jose is the largest city in the Bay Area and the civic capital of Silicon Valley, home to the headquarters of Adobe, Cisco, eBay, PayPal, and Zoom, with one of the highest median household incomes and housing costs of any large U.S. city.
| Local Metric | San Jose (2026 estimate) |
|---|---|
| Metro population | 970,000 |
| County / jurisdiction | Santa Clara County |
| Cost of living index (US avg = 100) | 177 |
| MIT living wage, single adult | $30.55/hour |
| MIT living wage, one earner supporting a family of four | $52.30/hour |
| Applicable minimum wage | $17.95/hour |
| Average rent, 1-bedroom | $2,700/month |
| Average rent, 2-bedroom | $3,400/month |
| Median home price | $1,450,000 |
| Median household income | $126,000/year |
| Combined sales tax rate | 9.375% |
| Effective property tax rate | 0.74% of value/year |
Local figures are 2026 estimates compiled from the MIT Living Wage Calculator, the C2ER Cost of Living Index, U.S. Census and Zillow housing data, and city and county sources. Verify current figures before relying on them.
San Jose sets a local minimum wage of $17.95/hour, above the California statewide minimum of $16.90/hour. The City of San Jose sets a local minimum wage above the California state minimum and indexes it to the Bay Area consumer price index each January. A full-time worker (40 hours/week, 52 weeks) earns about $37,336 per year gross before taxes at that rate.
Not for a single adult. The MIT Living Wage Calculator estimates a single adult in Santa Clara County needs about $30.55/hour (roughly $63,544/year) to cover basic costs. That is $12.60/hour above the applicable minimum wage, and a one-earner family of four needs closer to $52.30/hour.
At $17.95/hour, full-time work (2,080 hours/year) produces about $37,336 gross. Part-time at 30 hours/week is roughly $28,002/year. Average 1-bedroom rent in San Jose is about $2,700/month, or $32,400/year.
San Jose has a city minimum wage ordinance that sits above both the federal and California state minimums and rises with inflation.
The federal minimum wage is $7.25/hour and has not changed since 2009. California's higher state and local rates apply in San Jose instead.