New Jersey, known as the "Garden State", is one of the most expensive states with the highest property taxes in the nation. Here is everything you need to know about the cost of living in the Garden State — from housing and groceries to taxes, utilities, childcare, and what salary you actually need.
Here is what a typical month costs in New Jersey for a single person earning the median income of $87,700/year:
Each category shows how New Jersey compares to the national average. Green means cheaper, yellow means similar, orange/red means more expensive.
Adjust your salary to see a detailed monthly budget breakdown for living in New Jersey.
Select a state to see how much salary you would need there to maintain the same lifestyle you have in New Jersey.
The most popular cities for residents and newcomers in New Jersey:
Housing is the single biggest expense in New Jersey, as it is everywhere. The median home price in New Jersey is $495,000, and the median rent for a one-bedroom apartment is $1,500/month. With a housing cost index of 131, New Jersey housing is 31% more expensive than the national average.
Housing affordability is a real challenge in New Jersey. Many residents spend well over 30% of their income on housing. Consider looking at suburbs or smaller cities within the state for significantly lower costs.
New Jersey has a state income tax rate of 10.75%. On the median household income of $87,700, you will pay approximately $9,428/year in state income tax ($786/month). This is one of the higher rates nationally and significantly impacts disposable income.
The average single person in New Jersey spends approximately $450/month on groceries. A family of four can expect to spend $1,125-$1,350/month. The food cost index of 104 means groceries in New Jersey are 4% above the national average.
Gas prices in New Jersey average $3.35/gallon. For the average commuter driving 15,000 miles/year at 25 MPG, that is roughly $2,010/year in fuel costs.
New Jersey healthcare costs are 8% above the national average (index: 108). The average annual healthcare cost per person in New Jersey is approximately $6,480 including premiums and out-of-pocket expenses. Employer-sponsored health insurance covers the majority of working adults.
Infant daycare in New Jersey averages $1,400/month ($16,800/year). This is a significant expense that rivals rent in many areas. Many families in New Jersey find that one parent staying home is more cost-effective when two or more children need daycare.
New Jersey is a higher-cost state, but the higher expenses often come with higher incomes, better infrastructure, and more job opportunities. The median household income of $87,700 helps offset the 21% premium on living costs.
See all New Jersey financial calculators:
New Jersey (NJ) has a cost of living index of 121, meaning it is 21% more expensive than the US average. Housing is the biggest factor with an index of 131. The median rent is $1,500/month and the median home price is $495,000. New Jersey ranks #45 out of 50 states for affordability (1 = cheapest).
For a single person, a comfortable salary in New Jersey is approximately $114,010/year ($9,501/month). For a family of four, aim for $192,940/year. This covers housing at 30% of income, groceries ($450/mo), transportation, healthcare, and a 15% savings rate. The median household income in New Jersey is $87,700.
The median rent for a one-bedroom apartment in New Jersey is approximately $1,500/month. A two-bedroom averages $2,025/month. Rent varies significantly by city: Newark, Jersey City, Paterson are the most popular metro areas. Housing costs in New Jersey are above average — budget carefully.
New Jersey is a more expensive state (COL index 121), but offers strong job markets and high median incomes ($87,700). Popular areas include Newark, Jersey City, Paterson.
The most affordable areas in New Jersey are typically smaller cities and rural areas away from the major metros. Within New Jersey, costs can vary 20-40% between the most expensive city (Newark metro) and more affordable areas. Elizabeth and Trenton tend to offer lower costs while still providing good amenities and job opportunities.
The average monthly grocery bill in New Jersey for a single person is approximately $450 ($1,125 for a family of four). New Jersey food costs are 4% above the national average. Shopping at Walmart, Aldi, and local discount stores can reduce this by 15-25%.
The average monthly electric bill in New Jersey is approximately $155. Total utilities (electric, gas, water, internet) average $341/month. New Jersey utilities are 10% above the national average. Utility costs are manageable for most households.
New Jersey has a state income tax rate of 10.75%. On the median household income of $87,700, that is approximately $9,428/year in state income tax. This is among the highest in the nation.