Income Reality in New Jersey — Taxes, Housing & Salary
High income, highest property taxes, NYC proximity
Data: 2026-Q2 · BLS · HUD · KFFIncome tax overview
New Jersey has a top income tax rate of 10.75%, one of the highest in the nation.
Housing snapshot
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.
Cost of living summary
At an index of 121, New Jersey is about 21% more expensive than the national average of 100.
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.
Major cities
Salary reality examples
Moderate in suburban NJ. High property taxes add $500-$1,000+/month to housing costs for homeowners.
Comfortable in most NJ areas. High taxes are the primary financial burden.
Good flexibility. NJ's proximity to NYC job market supports high earning potential.
FAQ — Income Reality in New Jersey
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.
Related tools
Cost of Living Index from C2ER. This is a picture, not a verdict.