New Jersey, also known as the Garden State, has a population of over 9 million, being one of the most highly densely populated states in the United States.
It contains large cities like Newark, Peterson, and the capital of the state Trenton.
New Jersey has been considered one of the most expensive states due to the cost of living.
New Jersey cost of living is on the higher side mainly because of the desire to live so close to New York City. On the contrary, New Jersey has lower taxes than New York on grocery and fashion items.
It also is the home state of some of the best northeastern colleges.


Proximity New York is not the only reason for the staggering costs.
Another major reason for this is taxation policies, in addition, the State is extremely dense, and this has been interlinked with the increasing property charges.
Hence, the costs are seen to be pushed further towards the higher end.
The imperative commodities which one might analyze include but are not limited to:


Abode to several wealthy counties, New Jersey has an average property cost of roughly $360,000.
If you compare it to the average property cost in America which is roughly 230,000, you get a clearer understanding of the pricing.
The high prices make it a challenge, but not impossible, to purchase property upfront so many buyers usually end up getting a mortgage to finance their properties.
Not surprisingly NJ has more renters in comparison to property owners, which can be indicative of how difficult it is to manage your monthly expenses in a state like New Jersey.
In any case, every individual will seek property to reside in, be it rent or purchase, and doing research on the different areas of New Jersey is imperative.
Expensive areas like Upper Montclair have an average property cost of $800,000, comparing it to the cost of living in Jersey City which is averaged at $400,000.
Rent on the other hand is averaged at $1,750 in Jersey City for a one-bedroom apartment while in Upper Montclair it is averaged at $2,000.
The difference is quite evident, and one must seek the best fit according to their affordability and other living factors.


The first thing an individual would seek when the property is purchased or rented is facilities like electricity and the internet.
Although the property is heavy on the pocket, New Jersey is rather cheaper in terms of the cost of energy, compared to the rest of the United States.
Internet Facilities have a somewhat uniform cost when compared with other states, with the starting price being $30-50 depending on the service provider you opt for.


According to recent data, New Jersey is one of the most highly taxed states across the country.
The top tax rate according to the state, effective from 2020, is now 10.75%, rising from the previous 8.97% in 2017.
Furthermore, income tax is charged contrarily for different income brackets, for example, if your income is more than 1 million, 21.3% income tax will be charged, overall amplifying the New Jersey cost of living.


Health insurance is equally, if not more important than the compared commodities.
Health is wealth and one should have an insurance plan in any case of unforeseeable health events that might occur.
According to the State website, the effective health insurance rates effective 2021 start from $216.99 and go up to $725.
The reason for the variation is the amount that is going to be covered by these different plans.


Public Transportations is the most opted-for approach when it comes to traveling between New Jersey and New York, especially since the Holland tunnel can be quite pricey to use for daily use, parking is also something to consider.
The options for public transportation include trains, busses, ferries, and ride-hailing apps like Uber.
The average time an individual spends commuting is roughly 30-40 minutes.
The average cost of commuting through public transportation is quite affordable, for example:
It would cost you $2.75 to travel from New Jersey to New York on a train and only 20 minutes of your time depending on your destination.
If you own a car, the current price of a gallon of gas is around $3, which has increased by $.68 since 2020.

As of January 5, 2020: Cars $16.00 (cash) $13.75 for Peak (E-ZPass) $11.75 for Off-peak one-way on the Holland Tunnel. The convenience and cost-efficiency of public transport are very clear!


If you or anyone you know is considering New Jersey for higher education, there are a variety of options to consider.
New Jersey has some of the best colleges in the country, for example, Princeton University, Stevens Institute of Technology, and Rutgers.
Should New Jersey be the state for your higher education, there are a few notes to consider:
Every town, city, and area has different universities with different fee structures and accommodation options, you need to find the best fit according to your criteria.
Let’s do a little comparison between New Jersey and New York:
The cost of living in New Jersey for a student enrolled at Princeton University is roughly $75,000; this includes the tuition fee, accommodation, expenses, and miscellaneous costs.
In contrast, the cost of living in New York for a student enrolled at Columbia University is roughly $81,000.
Keep in mind these are top private universities, there are state universities that are more affordable, and New Jersey is found to be more inexpensive for students.
Now if we talk about the cost of living in New Jersey for international students there is a hike in the fee structure because international students are non-residents.
For example, at Rutgers, residents have to pay around $28,000 for their semester including accommodation; on the contrary, non-residents have to pay $45,000.


The following is the New Jersey cost of living compared with various other states to give a clearer depiction of the affordability of the state.
The following information is extracted from Numbeo:
Cost of living in New Jersey vs. New York:
Rent is approximately 33.4% cheaper in NJ than in NY.
Grocery costs 17% less in NJ than in NY.
New Jersey is relatively cheaper than New York in almost all the facilities.
Cost of living in NJ vs. Illinois
Rent is approximately 14% higher than it is in Illinois.
Grocery costs are 15% higher in NJ than in Illinois.
The New Jersey cost of living is much higher in comparison to Illinois.
Cost of living in Newark vs. Austin:
Rent is 9% less than the average rent in Austin.
Grocery is 13.48% more expensive in NJ than in Texas.
It is quite evident that apart from New York, NJ is a comparatively expensive state to reside in.
The comparison has been kept brief above but there are significant price variations in every commodity.
Be it basics like grocery items or fundamental commodities such as transportation and healthcare. The New Jersey cost of living has surpassed most of the states.


In comparison, New Jersey is relatively an expensive state to reside in, due to multiple factors discussed above.
Nonetheless, it offers top-notch educational opportunities along with a plethora of state-wide benefits from the beaches to the sprawling state parks, to other highlights not listed in this article.

If you are thinking of moving to New Jersey, consider the cost of living in New Jersey and look for a property that fits with your budget, and life.