How Much Should I Charge as a Lawyer in California?

Charge too much and you lose clients. Charge too little and you lose profits.

The Clio Legal Trends Report shows exactly what California lawyers charge, bill, and collect, so you can stay competitive and profitable.

Key California Benchmarks (2025):

• Lawyers average hourly rate: $420/hour
• Law firms average hourly rate: $358/hour
• Cost-of-living–adjusted (lawyers): $373/hour
• KPI benchmarks: Utilization – 37% | Realization – 78% | Collection – 93%
• Top-earning practice areas in California: Bankruptcy ($544/hr), Corporate ($514/hr), Civil Rights & Constitutional Law ($505/hr)
• Lowest-earning practice areas in California: Worker’s Compensation ($181/hr), Small Claims ($240/hr), Medical Malpractice ($252/hr)

These numbers reflect what firms across California are earning right now. Use them to set a rate that’s competitive and aligned with the market.

Lawyers' Hourly Rates in California

Legal billing in California covers a wide range. According to the Clio Legal Trends Report, rates stretch from $181/hour in lower-paying practice areas like Worker’s Compensation to $544/hour in high-demand specialties such as Bankruptcy.

That’s a 201%+ difference between the lowest and highest ends of the spectrum! Your practice area matters just as much as your experience.

Compared with its neighbors, California sits comfortably above average as per Clio’s reporting.

• Oregon lawyers average $324/hour
• Nevada lawyers average $325/hour
• Arizona attorneys average $325/hour

That puts California about 25-30% higher than nearby states — particularly in cities like Los Angeles, San Diego, and San Francisco, where business growth continue to push rates upward.

In short, your hourly rate in California shouldn’t just reflect time spent. It should reflect market reality, specialization, and value.

Lawyers Hourly Rates by Practice Area in California

Every practice area tells a story.

Some pay top dollar, others barely cover the hours you put in. Check out what California lawyers really charge, bill, and collect.

Hourly Rates for California Law Firms

— Unadjusted Hourly Rates for California Lawyers

California lawyers bill an average of $358/hour (not adjusted for cost of living) — meaning this number reflects raw billing rates, not what those dollars are worth after local expenses.

By comparison, Oregon averages $283/hour and Arizona $279/hour. This puts California roughly 15-20% higher than its nearby peers.

— Adjusted Hourly Rates for California Lawyers

When adjusted for cost of living, California lawyers average $318/hour, reflecting what their billing power looks like after factoring in local expenses and regional purchasing power.

By comparison, while adjusted figures vary by source and year, California remains substantially above many nearby states on an unadjusted basis and remains competitive on a cost-of-living–adjusted basis.

California Key Performance Indicators (KPIs)

Your hourly rate is only part of the story. What really determines profit is your KPIs (Key Performance Indicators).

KPIs reflect how many of your hours turn into income. According to the Clio Legal Trends Report 2025, California lawyers perform close to the national averages in all 3 key areas.

— Utilization rate 37%

This is the percentage of a lawyer’s total workday spent on billable, revenue-generating work. 

California’s utilization is 37%, matching the national average.

— Realization rate 78%

Your realization rate shows how much of your billable time actually makes it onto an invoice - after write-offs, discounts, or canceled work.

In California, lawyers realize about 78% of the hours they log, below the national average of 86%. By comparison, Florida comes in at 81%, suggesting California firms are doing a better job of turning tracked hours into billed revenue.

— Collection rate 93%

Collection rate measures how much of that billed revenue actually gets paid.

California lawyers collect 93% of what they invoice, matching the national average of 93%. Hawaii, by contrast, maintains a 96% collection rate, showing how strong follow-up and payment systems can make a measurable difference in total earnings.

Law Firm vs Solo Lawyers Rates in California

— Lawyer Rates

— Law Firm Rates

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Frequently Asked Questions

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