Cost of Living in New Jersey (NJ)
Compare costs across 6 New Jersey cities. From home services to salaries, see how NJ stacks up against the national average.
Is New Jersey Affordable?
New Jersey's average cost index is 117, which is above the national baseline of 100. Trenton is the most affordable tracked city in NJ at index 105, while Jersey City is the most expensive at index 135.
The gap between the cheapest and most expensive tracked cities is 30 index points, so state-level averages should be used as a map, not a final budget.
What Drives the Statewide Cost Picture?
New Jersey is above the national cost baseline across tracked cities.
Trenton has a cost index of 105.
Jersey City has a cost index of 135.
Average median household income across 6 tracked NJ cities.
Cheapest and Most Expensive Cities in New Jersey
New Jersey State Taxes (2026)
Headline tax rates that affect your real take-home pay and total cost of living in New Jersey.
State Planning Checklist
- Start with Trenton if the priority is lowest recurring cost inside New Jersey.
- Compare Jersey City against salary and tax advantages before assuming the higher-cost city is worse.
- Use city pages for rent, salary, insurance, and local service costs before making a relocation decision.
Cost by Category Across New Jersey
Business Startup Costs
Legal Services
Compare Cities Within New Jersey
Explore Other States
Popular New Jersey cost & affordability searches
- → Cost of living in Newark, NJ
- → Cost of living in Jersey City, NJ
- → Cost of living in Paterson, NJ
- → Cost of living in Elizabeth, NJ
- → Cost of living in Lakewood, NJ
- → Cost of living in Trenton, NJ
- → Average rent in Newark, NJ
- → Average rent in Jersey City, NJ
- → Average rent in Paterson, NJ
- → Salary needed to live in Newark
- → Salary needed to live in Jersey City
- → Salary needed to live in Paterson
Frequently Asked Questions: New Jersey Cost of Living
What is the cost of living in New Jersey?
New Jersey's average cost-of-living index is 117, which is 17% above the U.S. baseline of 100. Across 6 tracked cities, costs span from index 105 in Trenton to 135 in Jersey City.
What is the cheapest city to live in New Jersey?
Trenton is the most affordable tracked city in New Jersey, with a cost index of 105 — roughly 5% above the national average.
What is the most expensive city in New Jersey?
Jersey City is the most expensive tracked city in New Jersey, at a cost index of 135. The gap between Trenton and Jersey City is 30 index points, so always budget at the city level.
What is the average household income in New Jersey?
The average median household income across 6 tracked New Jersey cities is about $44,543 per year.
Does New Jersey have a state income tax?
Yes. New Jersey levies a progressive state income tax at 1.4-10.75%, which affects your real take-home pay.
How much is sales tax in New Jersey?
The combined sales tax in New Jersey averages 6.63% — 6.625% at the state level plus 0% in average local tax.