Cost of Living in New Jersey — Housing, Taxes & Everyday Expenses
High income, highest property taxes, NYC proximity
Data: 2026-Q2 · BLS · HUD · KFFOverview
New Jersey has very high incomes but also very high taxes — both income and property. It serves largely as a bedroom community for New York City workers.
Housing costs
Median 1BR rent in Newark is approximately $1,800. Jersey City and Hoboken near NYC are $2,500-$3,000+. Suburban NJ varies widely by proximity to NYC.
Tax reality
New Jersey has a top income tax rate of 10.75%, one of the highest in the nation.
Everyday expenses
At a cost of living index of 121, New Jersey is about 21% more expensive than the national average of 100. New Jersey's very high income tax and property taxes significantly reduce real purchasing power despite high nominal incomes.
Salary reality in New Jersey
Cost of Living in New Jersey — FAQ
What is New Jersey's income tax rate?
New Jersey has a graduated income tax with a top rate of 10.75%. It also has the highest property taxes in the nation, averaging over $9,000/year.
Is New Jersey expensive?
Yes. New Jersey has a cost of living index of 121, about 21% above the national average. Taxes are the primary driver.