(Last Updated – September 4, 2025)

Many people live in New Jersey because the state offers all the advantages of living near the Big Apple – fantastic restaurants, premier sports events, Broadway shows – but with more space. Also, New Jersey’s income tax rate and sales tax are generally both lower than in New York.

In contrast to its urban reputation, New Jersey is often referred to as the Garden State. It lives up to that moniker with plenty of public parks, local and national, such as Ellis Island, Morristown National Historical Park, and the Thomas Edison National Historical Park.

Here’s a closer look at the cost and quality of living in the state of New Jersey.

What’s the Average Cost of Living in New Jersey?

Average Cost of Living in New Jersey: $63,814 per year

The Missouri Economic and Research Information Center (MERIC) maintains a cost of living index that measures the cost of different expenses (such as housing, health care, transportation, and others) for a person living in a specific city or area. The index uses a baseline of 100, which is the national average, and a score above or below 100 indicates a higher or lower than average cost of living.

At 114.8, the cost of living in New Jersey is lower than in New York and almost the same as in nearby Maryland, but higher than in other surrounding states of Connecticut, Delaware, and Pennsylvania.

The latest data from the Bureau of Economic Analysis shows average personal consumption expenditures to be around $63,814 for a single person living in New Jersey.

Here’s a breakdown of what living expenses in New Jersey look like by category.

That translates to average monthly expenses of $5,318 per person.

Housing Costs in New Jersey

Median Housing Costs in New Jersey: $1,379 to $2,464

New Jersey, like its neighbor New York and surrounding states, is densely populated. Situated in the mideast region, it’s not the most affordable state in the country.

The U.S. Census Bureau estimates that New Jersey has 3,761,229 housing units. The average home value in New Jersey is $569,578 as of August 2025, according to Zillow. That’s significantly above the national average home value of $368,581. With its proximity to New York, New Jersey is a competitive market with 59% percent of homes selling over list price.The median monthly cost of a mortgage in New Jersey is $3,151.

If you’re renting, the general costs of putting a roof over your head in New Jersey, according to the latest census data, are as follows.

•  Median studio rent: $1,379

•  Median one-bedroom rent: $1,421

•  Median two-bedroom rent: $1,755

•  Median three-bedroom rent: $1,924

•  Median four-bedroom rent: $2,288

•  Median five-bedroom or more rent: $2,464

•  Median gross rent: $1,667

As with any market, your housing costs will vary according to your location, and so will home values. Here are typical home values for New Jersey’s top cities, according to Zillow’s August 2025 data.

Utility Costs in New Jersey

Average Utility Costs in New Jersey: $376.21 per month

Utility costs are a major component of your monthly expenses. This table can give you some idea of the approximate costs for monthly utilities if you live in New Jersey.

Groceries & Food

Average Food and Beverages Spending in New Jersey: $1,477 per month for a family of four.

New Jersey residents’ spending on groceries is similar to that of inhabitants of neighboring states New York, Pennsylvania, and Delaware. Washington, D.C. has much higher food costs, and Maryland has significantly lower food costs.

According to the Bureau of Economic Analysis, the average annual cost of food and beverages per person living in New Jersey is $4,432, which comes out to around $369 per month.

The Council for Community and Economic Research ranks the cost of groceries in major cities across the United States.The table below shows the comparative grocery items index in the mideastern region for 2024, from lowest to highest.

The Index measures relative price levels for consumer groceries using a base index of 100. An index that is above or below 100 reflects groceries that are more expensive or less expensive in a city.

Transportation

Average Transportation Costs in New Jersey: $9,700 to $18,050 per year

While New Jersey homes generally offer more space than you might get for the same price in New York City, the state is still highly populated. As it’s adjacent to New York and many residents work there, long commutes and tolls may be difficult to avoid. According to RentCafe, the cost of transportation in New Jersey is 6% higher than the national average.

Here are estimated transportation costs in New Jersey, according to MIT’s Living Wage Calculator, updated for February 2025.

Health Care

Average Health Care Costs in New Jersey: $9,762 per person, per year

Health care costs in New Jersey are around $9,762 per person, according to the Bureau of Economic Analysis Personal Consumption Expenditures report. This number can vary significantly depending on your health needs, age, and insurance coverage. That said, New Jersey is known for its excellent health care facilities.

Health care is one of the more significant expenses to factor into your cost of living, particularly as you age. Visit Healthcare.gov to find out more about affordable health insurance in New Jersey.

Child Care

Average Child Care Costs in New Jersey: $1,143 to $1,462 per child, per month

Average childcare costs in New Jersey are relatively consistent regardless of the age of the child. Here are average child care costs in New Jersey according to CostofChildCare.org.

Taxes

The maximum statutory income tax rate for New Jersey, according to the Tax Foundation, is: 10.75%.

New Jersey, like neighboring New York, has one of the highest state income taxes in the country. The good news is that it’s a graduated tax, so if you are making a modest salary, your rate likely won’t be the maximum.

The state sales tax in New Jersey is 6.625%, though in some cases local tax may apply as well. There’s also an effective state property tax of 2.08%, and New Jersey levies an inheritance tax.

Miscellaneous Costs

With an understanding of the monthly cost of living in New Jersey, you can budget more effectively for the fun things available to the state’s residents, such as hiking the Appalachian trail or enjoying a dinner out in Hoboken. Living in New Jersey gives you easy access to the Big Apple, where you can watch a top-tier football or baseball game, or alternatively, spend a night out on Broadway. Here are the price tags on a few popular options.

•  Tickets to a New York Giants or New York Jets game: From around $100 and up.

•  Tickets to a Broadway show: Tickets range from $20 to $145 and up. Tickets for the most popular shows can cost $300 or more.

•  A day out in Atlantic City: around $126 (for meals and transportation, according to Budget Your Trip).

How Much Money Do You Need to Live Comfortably in New Jersey?

If you’re still unsure of how much you need to live in New Jersey, MIT’s Living Wage Calculator provides the following statistics: The average single, childless individual working 40 hours a week for 52 weeks a year would need to make $26.20 an hour, or $54,503 a year, to earn a living wage in New Jersey.

New Jersey is an expensive state to live in. U.S. News & World’s Report ranked the state 49th for cost of living and affordability. It ranked the state 19th in terms of best state overall and 45th for opportunity.

What City Has the Lowest Cost of Living in New Jersey?

While New Jersey has a high cost of living overall, some of its cities are more affordable. Here are three of the most economical choices in the Garden State.

Gloucester City

Perhaps best known as the birthplace of Betsy Ross, Gloucester City has a cost of living 6% below the national
average and 23% below New Jersey’s average, according to the Economic Research Institute (ERI). It’s located in
Camden County, across the Delaware River from Philadelphia.

Vineland

Vineland is 4% less expensive than the national average and 22% less pricey to live in than the average city in New
Jersey, according to the ERI. Vineland is located in Cumberland County, and it’s also close to Philadelphia. Once
famed for its poultry industry, the city’s major sectors now include agriculture, health care, and retail.

Camden

Camden does have a cost of living that’s 4% higher than the national average, but it’s still 15% below the average
for New Jersey. Also adjacent to Philadelphia, the city is currently engaged in a major redevelopment of its
waterfront, which already includes attractions like the Adventure Aquarium and the Battleship New Jersey Museum and
Memorial, to bring additional retail, office space, and housing to the area.

Helpful Resources for Future New Jersey Residents