Cost of Living for New Jersey (2026)
New Jersey (NJ) Key Facts
Cost of Living Index
120
National Average Index
100
Median Household Income
$86,000
Approximate Median Rent (1 B R)
$1,400/month
State Income Tax Rate
10.75%
How This Calculator Works in New Jersey
This cost of living calculator helps you compare salaries between New Jersey and other states or cities by adjusting for purchasing power differences. Enter a salary and a target location to see what equivalent income you would need. It uses New Jersey's cost of living index of 120 relative to the national average of 100 to provide an accurate comparison.
New Jersey Overview
New Jersey has a cost of living index of 120, where 100 represents the national average. Northern New Jersey's proximity to New York City creates some of the highest housing costs in the nation. Southern New Jersey is more affordable but still above the national average. Property taxes are the highest in the country. The median household income is $86,000, which has a purchasing power equivalent of approximately $71,667 in an average-cost location.
How New Jersey Compares
New Jersey's cost of living index of 120 compares to New York's 127 and Pennsylvania's 98. Residents in New Jersey generally need higher incomes to maintain the same standard of living as those in more affordable states. The most affordable states like Mississippi (84) cost roughly 43% less than New Jersey, while the most expensive like Hawaii (192) cost 60% more.
| State | Top Rate | Notes |
|---|---|---|
| New York | COL Index: 127 | New York has a cost of living index of 127 and a median household income of $72,000. It is more expensive than New Jersey. |
| Pennsylvania | COL Index: 98 | Pennsylvania has a cost of living index of 98 and a median household income of $67,000. It is more affordable than New Jersey. |
| Delaware | COL Index: 103 | Delaware has a cost of living index of 103 and a median household income of $70,000. It is more affordable than New Jersey. |
The national average cost of living index is 100. New Jersey's index of 120 is above the national average. States like Mississippi (84) and West Virginia (84) have the lowest cost of living, while Hawaii (192) and DC (148) have the highest. New Jersey's median household income of $86,000 should be evaluated alongside its cost of living to understand real purchasing power.
Tips for New Jersey Residents
- 1Northern New Jersey's proximity to New York City creates some of the highest housing costs in the nation. Southern New Jersey is more affordable but still above the national average. Property taxes are the highest in the country.
- 2New Jersey's median household income of $86,000 has a real purchasing power of about $71,667 when adjusted to the national average. Compare this figure, not the raw salary, when evaluating cross-state moves or job offers.
- 3New Jersey's top state income tax rate of 10.75% further reduces purchasing power beyond what the cost of living index alone shows. Factor in taxes when making state-to-state comparisons.
- 4When comparing job offers between states, adjust salaries by the cost of living index. A $60,000 salary in a state with an index of 90 provides more purchasing power than $70,000 in a state with an index above 105.
- 5Look beyond the state average — costs can vary dramatically within New Jersey between metro areas, suburbs, and rural communities. Research the specific city or county where you would live.