United States
Cost of living in New Jersey
Cost of living in New Jersey stands at a Regional Price Parity of 108.8, putting it 9 percent above the US average and fourth nationally. New Jersey's position is shaped by proximity: the state shares metro labor markets with both New York City and Philadelphia, and housing prices in commuter counties reflect demand from workers who need reasonable access to those employment centers. The income tax tops out at 10.75 percent on income over one million dollars, and notably New Jersey offers no general standard deduction, meaning taxable income is calculated from gross with fewer offsets than most states allow. Sales tax sits at 6.625 percent. For anyone moving from a lower-cost state like Colorado (RPP 103.1) or Maryland (RPP 105.0), New Jersey's price level requires a meaningful salary adjustment to maintain equivalent purchasing power.
Price level
108.8
US = 100
National rank
4th
of 51, dearest first
Income tax
10.75%
top rate
Sales tax
6.625%
state base rate
What your salary is worth in New Jersey
Because prices here sit at 108.8 against the national 100, the same paycheck stretches differently than it would elsewhere. These figures hold buying power constant: the salary listed is what you would need in New Jersey to live as you would on the reference amount in another place.
| Same lifestyle as | $60,000 | $100,000 |
|---|---|---|
| US average | $65,280 | $108,800 |
| California (dearest) | $58,970 | $98,284 |
| Arkansas (cheapest) | $75,121 | $125,201 |
Compare New Jersey with anywhere in the US
To live the same in California you need
$71,222
to match $70,000 in New Jersey
Price level, US = 100
The equivalent salary keeps your purchasing power constant: it is your pay scaled by the ratio of the two price levels. Regional Price Parities measure what a fixed basket of goods and services costs locally. Source: U.S. Bureau of Economic Analysis, 2024.
New Jersey in context
Property taxes are the cost factor most distinctive to New Jersey and the one the RPP figure alone does not fully capture. The state consistently records the highest effective property tax rates in the nation, often exceeding 2 percent of assessed value annually. For homeowners, this substantially increases the real cost of housing relative to states with comparable home prices but lower tax rates. Renters are not directly liable for property tax, but landlords factor these costs into rent, so the burden flows through indirectly. Income variation across the state is substantial: Bergen and Morris counties in the northern commuter belt carry prices close to those of New York City suburbs, while Cumberland and Salem counties in the south have significantly lower housing and living costs. The income tax structure, with its absence of a standard deduction, tends to affect middle-income earners more than the top rate headline implies. New Jersey suits dual-income professional households who work in the major metro markets and can distribute high housing costs across two incomes.
The closest state above New Jersey on price is District of Columbia at 109.9. Just below sits New York at 107.9.
Frequently asked questions
Is New Jersey expensive to live in?
New Jersey sits at a price level of 108.8 where the US average is 100, so a typical basket of goods and services costs about 9% more than the national norm. That ranks it 4th most expensive of 51 states. Housing is usually the largest single driver of the gap.
What salary do you need in New Jersey?
To match the buying power of $60,000 earned at the US average, you would need about $65,280 in New Jersey. The figure scales with the price level: a place dearer than average needs more, a cheaper one needs less. Your own number also depends on housing choice and household size.
How much tax does New Jersey charge?
New Jersey applies a top state income-tax rate of 10.75% and a base state sales tax of 6.625%. 2025 single-filer brackets. New Jersey has no general standard deduction. Top rate 10.75% over $1,000,000. Local jurisdictions can add their own sales tax on top.
Cost of living in other states
Price levels are Regional Price Parities from the U.S. Bureau of Economic Analysis, Regional Price Parities (SARPP, MARPP), 2024 (public domain). State tax figures are the latest published rates from state revenue departments. All figures are estimates for general comparison and not financial advice; your own costs depend on housing, household size and lifestyle.