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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
Let's be honest: New Jersey isn't cheap. But within that premium market, there are cities where your dollar stretches meaningfully further. Newark proves it with a cost index of 116 — for better or worse — , the lowest in New Jersey, and we've ranked all 4 contenders to help you find the best deal i…
#1 Ranked: Newark — cost index 116, rent $2,121/mo, income $48,416
0 of 4 cities come in below the national cost-of-living average of 112
Data sourced from Census Bureau, Zillow, BLS, and Tax Foundation — current as of 2026
| City | State Tax | Sales Tax | Property Tax | Est. Take-Home |
|---|---|---|---|---|
1Newark | 10.75% | 6.625% | 2.08% | $33,803 |
2Jersey | 10.75% | 6.625% | 2.08% | $33,803 |
3Paterson | 10.75% | 6.625% | 2.08% | $33,803 |
4Elizabeth | 10.75% | 6.625% | 2.08% | $33,803 |
Let's be honest: New Jersey isn't cheap. But within that premium market, there are cities where your dollar stretches meaningfully further. Newark proves it with a cost index of 116 — for better or worse — , the lowest in New Jersey, and we've ranked all 4 contenders to help you find the best deal in an expensive landscape.
Newark earns its position at #1 through a combination that's hard to replicate. The 116 cost index sits 4 points above the national baseline, and the $48,416 median income means purchasing power here is partially offset by higher costs. Homes list at $474,178 — $6,808 above the national median, reflecting the local market dynamics. On the cost side, Utilities leads the way at 106, while Housing trails at 139.
Bottom line: Newark leads this ranking for clear, data-backed reasons — but the "best" city depends on your priorities. Click into any city below to see the full detail page with 12-month trend charts, profession-specific salary data, and a breakdown of all five cost categories. If you're seriously considering a move, use our salary calculator to model your specific income against these numbers.
304,960 residents · New Jersey
Dive into Newark's numbers: cost index 116 (4 points above national average), rent $2,121/month, income $48,416, and a home price of $474,178. The city's cost profile isn't flat — Utilities is the cheapest category at 106, while Housing runs 139. With 304,960 residents, it balances mid-size city convenience with manageable costs.
291,657 residents · New Jersey
Here's Jersey by the numbers — and there's a lot to like. Cost index: 139. Rent: $3,048/month. Income: $94,813/year. Home price: $653,810. Population: 291,657. The strongest category is Utilities at 128; the most expensive is Housing at 197. Translate that rent to annual numbers, and residents are costing renters $13,836 more per year vs. the national median. Over a five-year window, that difference is life-changing (your mileage may vary — literally).
156,452 residents · New Jersey
Why Paterson ranks #3: the numbers tell a clear story. At 118 on the cost index, residents spend roughly 6% more than the typical American. Rent sits at $2,088/month while the median household pulls in $53,766/year. The Utilities category is particularly strong at 108, though Housing (144) lags behind. Home prices average $527,848 — $60,478 above the national median.
135,829 residents · New Jersey
Dive into Elizabeth's numbers: cost index 121 (9 points above national average), rent $2,293/month, income $63,874, and a home price of $533,247. The city's cost profile isn't flat — Utilities is the cheapest category at 111, while Housing runs 153. With 135,829 residents, it balances mid-size city convenience with manageable costs.
We combine state income tax rate, combined sales tax (state + local), and effective property tax rate into a total tax burden score. Cities are ranked by this combined metric — lower is better for your wallet. All data is sourced from federal agencies and verified research institutions. Cost of living indices are normalized to 100 (national median) using Zillow rent as the primary signal, with sub-category adjustments derived from regional BLS price data. Rankings are updated monthly as new data is released.
Newark ranks #1 in New Jersey for this analysis with a cost index of 116 and median income of $48,416.
Our cost of living index uses real Zillow rent data as the foundation, indexed to 100 (national median). Sub-categories (housing, food, transport, utilities, healthcare) are derived from the overall index with regional adjustments. Data is updated monthly.
Newark (ranked #1) has a cost index of 116 and rent of $2,121/mo, while Elizabeth (ranked #4) has a cost index of 121 and rent of $2,293/mo — a 5-point difference in cost of living.
City data is refreshed monthly from Census Bureau population estimates, Zillow rent and home price indices, BLS salary data, and Tax Foundation tax rates. Last updated: 2026.
The median 1-bedroom rent in Newark is $2,121/month as of 2026, based on Zillow's Observed Rent Index. This is $226 above the national median of $1,895/month.
The median home price in Newark is $474,178, which is 9.8× the local median income. Most median-income households would stretch to buy at this ratio. The national median home price is $467,370.
New Jersey has a 10.75% state income tax rate. Combined state and local sales tax averages 6.625%, and the effective property tax rate is 2.08%.
This ranking was generated using data current as of early 2026. Population and income data comes from the Census Bureau's American Community Survey (5-year estimates). Rent and home price data is from Zillow's monthly releases. Tax rates are from the Tax Foundation's 2025 edition. Rankings are refreshed monthly.