New Jersey Cost of Living Comparison

New Jersey: the property-tax capital, dearer than New York

New Jersey outranks its larger neighbour on the headline measure. Its all-items parity of 108.805 is above New York's 107.921, and its rent parity of 134.292, rank 49 of 51, is well above New York's 122.168. The two-bedroom gross-rent median of $1,804 ranks fifth, $184 a month more than New York's statewide median. Goods (107.066) rank 49th as well, so there is little relief at the store.

Property tax is New Jersey's signature cost. The median real estate tax paid, $9,590 a year, is the highest of all 51 jurisdictions, and owners without a mortgage report median monthly costs of $1,232, also the highest anywhere. Owners with a mortgage pay a median $2,829 a month, rank 4, on homes with a median value of $454,400 (rank 9). Those bills go to local governments; property tax is essentially absent from state collections.

High incomes absorb much of it. The median household income of $103,556 ranks fourth, and real per capita personal income, adjusted for New Jersey's prices, is $63,142, rank 12. Renters spend 30.9% of income on gross rent, rank 12.

The state government collected $54.07 billion in fiscal 2025, $5,662 per resident (rank 12): individual income tax 38.9%, general sales 27.4% and corporate income tax 15.6%. The sales tax rate has been 6.625% since January 1, 2018.

The relative price level has eased from 110.722 in 2020 to 108.805 in 2024. Pennsylvania (97.572) and Delaware (99.808) are the cheaper neighbours; the two-bedroom median is $1,245 in Pennsylvania, or $559 a month less, and the New Jersey vs Pennsylvania page covers the wage agreement between the two. New York (107.921) is also the nearest price level nationally.

Before you budget a move

New Jersey is near the top of the verified all-items price-parity distribution. That broad result helps screen an offer, but a New York or Pennsylvania commute still requires its own transport and tax preparation. Residence, work location and offered benefits are inputs absent from statewide medians.

For a particular New Jersey purchase, obtain the actual municipality’s bill and likely assessment rather than multiply home value by a supposed statewide effective rate. This page publishes historical tax dollars. Renters should confirm lease utilities and parking before comparing an advertised amount with median gross rent.