"Sunshine tax" is an ironic term used in the United States and Canada describing the phenomenon that salaries are often lower than the national average, and costs of living higher than the national average, in places which have a desirable climate.

It primarily refers to the fact that many people are willing to accept lower earnings in exchange for living in a place like California, Florida, Colorado, the Okanagan region of British Columbia or other places with an attractive climate.

"As most people know, everything seems to cost more in California. The houses are more expensive, the gas and groceries cost more and don’t ask about the cost of daycare. This added cost of living has inspired its own term – the sunshine tax. It is the added cost to live in one of the best climates on earth, where the sun shines almost every day."

The term can also be used to mean anything that has the effect of making costs higher in areas like the Sunbelt. In 2007 the San Diego Union Tribune calculated the cost of the California sunshine tax at $1.1 billion just for the additional cost of gasoline in the state.