New Jersey vs New York
A tax calculator says the difference is $603 a year. Once you count what a dollar actually buys in each, New Jersey is $51 ahead — $514 over 10 years.
Property tax is set by counties, not states. Inside Texas alone the rate varies six times over, so this is the single choice that changes the answer most.
Does it work everywhere in New York?
in what the money buys · $514 over 10 years
You need 0.1% more for the move to break even.
Who worked this out, and what it is built on
I build and maintain every comparison on this site — 1275 state pairs so far, on the same engine that runs the tax calculators for all 50 states and 3,143 counties. This is not a template with two names swapped into it: New Jersey and New York are run through the actual rules of each place, and if the numbers say the move is not worth it, that is what the page says.
Four sources, and one deliberate refusal. Federal figures from the IRS revenue procedure. State rates read one state at a time off each state’s own department of revenue. County property tax from the US Census Bureau. Cost of living from the Bureau of Economic Analysis Regional Price Parities, 2024 — and not from Numbeo or any other crowd-sourced index, because those are filled in by users, publish no methodology, and cannot be cited. That single choice is most of why the cost-of-living numbers here differ from everybody else’s.
When I get something wrong I publish the correction with the date and what it cost — including the two mistakes on these pages I found myself. Data last verified September 1, 2026.
Where to go from here
Almost nobody is choosing between exactly two places. These are the questions that usually come next, with the answer already attached so you can see which is worth opening.
Other moves involving New Jersey or New York
States that sit near New York on prices compared against New Jersey, and the mirror of that. The comparison you would run next.
- New Jersey vs Washington— Washington by $10,231
- District of Columbia vs New Jersey— District of Columbia by $4,085
- Hawaii vs New Jersey— Hawaii by $4,849
- District of Columbia vs New York— District of Columbia by $4,136
- Hawaii vs New York— Hawaii by $4,901
- New York vs Washington— Washington by $10,283
Each state on its own
The full detail behind each half of the comparison above.
The counties that decide it
Property tax is set by county, and the spread inside one state beats most state pairs.
- Cape May County, New Jersey— 1.32%, the cheapest
- Camden County, New Jersey— 3.08%, the dearest
- Kings County, New York— 0.69%, the cheapest
- Orleans County, New York— 3.00%, the dearest
Similar in price to New Jersey
States that sit next to New Jersey on the price index — often the comparison people should have run.
- California— 110.7 on prices
- Hawaii— 110 on prices
- District of Columbia— 109.9 on prices
- Washington— 107 on prices
- Every New Jersey comparison— all 50
- Every New York comparison— all 50
- The nine states with no income tax— and what they charge instead
New Jersey and New York cost almost exactly the same, so this one really is about tax
Most comparisons on this site end up decided by the price level rather than the tax code. This pair is the exception: New Jersey indexes at 108.8 and New York at 107.9 on the Bureau of Economic Analysis price index — 0.9 points apart, which is close enough that the deflator barely changes anything.
So the tax difference survives into the answer almost intact. Take-home differs by $603 and purchasing power by $51 — New Jersey ahead either way, which is unusual enough to be worth stating. When someone tells you tax rates decide where you should live, this is the shape of pair they are imagining — 281 of the 1,275, so a little over one in five.
Where the two sit nationally: New Jersey is the 4th most expensive place to live of the 51 — the 50 states and the District of Columbia — and New York is 5th. Housing, the component that moves most, is 134.3 against 122.2.
Grey columns are what a year of New Jersey and a year of New York are worth in the same money. The bars between them are each thing that changes, in the order it changes: green adds, amber takes away.
Where the money actually goes, line by line
Five separate taxes. On this pair the state income tax genuinely is the largest difference — $680 — which is less common than the coverage of this subject suggests:
Federal income tax — $13,170 either way. Identical, because it is federal. Any comparison that shows a difference here is wrong.
FICA — $7,650 either way. Also federal, also identical.
State income tax — $4,180 in New Jersey, $4,860 in New York. A difference of $680.
Property tax — $8,818 in New Jersey, $8,741 in New York on a $400,000 home, at each state's median local rate. Smaller than the income tax gap here, which is not usually the case.
Local income tax — zero on both sides. Both New Jersey and New York keep income tax at the state level only, so the figures above are complete rather than approximations.
Total: $33,818 in New Jersey against $34,421 in New York — 33.8% and 34.4% of gross.
And New Jersey housing costs 9.9% more
These two states cost almost the same to live in, which is why the tax difference survives into the answer. The index is the Bureau of Economic Analysis Regional Price Parity — official, published per state, 100 is the national average — and it is worth looking at the components even when the headline barely moves, because they can disagree with it.
Cheaper in New York than New JerseyDearer in New York than New Jersey
Each bar is how far apart New Jersey and New York are on that component, and which way. Housing almost always runs several times wider than everything else — which is why a single blended index tells you very little.
All items — 108.8 in New Jersey, 107.9 in New York. A gap of 0.9 points.
Housing — 134.3 against 122.2. A gap of 12.1 points, 13.4× the headline gap. This is what people mean when they say somewhere is expensive.
Goods — 107.1 against 107.3, 0.2 points apart — 60.5 times narrower than the housing gap — and typical: across all 1,275 pairs the median is 2.7 points for goods against 24.9 for housing. Blended into one figure, what you are reading is mostly housing wearing a general label.
Utilities — 114.2 against 134.4. 20.2 points, the second widest component after housing on this pair, and large enough to matter to anyone heating or cooling a big house.
Which half of this reaches you depends on whether you buy. Renting, the real difference between New Jersey and New York is $55 a year — property tax comes out of your side entirely, and what is left is the price level. Buying a $400,000 home it is $51. So renting is where the gap is widest here, by $4 — unusual, and it means buying erodes the advantage rather than compounding it.
The number to take into a salary negotiation: $100,086
This is the question people are actually asking and almost nobody answers: what would I need to earn in New York to live exactly as well as I do on $100,000 in New Jersey?
$100,086. That is 0.1% more than you earn now. Anything less than $100,086 and the move costs you money however it is presented.
The dashed line is the salary you earn now. The solid line is what matches it in New York. If the relationship were a simple multiplier the two would be parallel — they are not, because brackets, the Social Security ceiling and a property tax that does not move with income all bend it.
The obvious shortcut fails here, and by a measurable amount. Scaling your salary by the ratio of price levels — $100,000 × 107.9/108.8 — gives $99,173. The answer is $100,086, so the shortcut is $913 too low: brackets, the Social Security ceiling and a property tax that ignores income all bend the line the shortcut assumes is straight.
The figure belongs to the two states and your income. On $40,000 the match in New York is $40,798, 2.0% above what you earn; on $250,000 it is $247,996, 0.8% below. The relationship bends by 2.8% across that range.
Over 10 years: $514
At $51 a year, 10 years in New Jersey comes to $514 — and the county choice inside New Jersey is worth $70,012 over the same period. Both are real; only one of them is in the headline.
At $51 a year of real difference, 10 years in New Jersey instead of New York is worth $514 in today's purchasing power — before compounding anything you might invest it in.
The line starts below zero because moving costs about $15,000 and lands entirely in year one. It pays for itself inside the first year. That is the figure a per-year comparison hides.
And it is slower to arrive than the annual figure suggests. Reckoning $15,000 for removal, fees and the cost of selling — an assumption this page makes, not a figure from a source — at $51 a year it takes 292.0 years to recover — so the annual figure only becomes yours from year 293.
At three horizons: $154 over three years, $514 over 10, $1,541 over thirty — and the three-year figure does not clear the cost of getting there.
None of those figures contains the one variable that could overturn them: the same job rarely pays the same in New Jersey and New York. That is what the $100,086 break-even above is for — it prices an offer instead of assuming the offer is identical.
Choosing the county matters more than choosing the state here
This comparison is worth $51 a year. Choosing where inside New Jersey to live is worth $7,001 a year on the same $400,000 home — 136.3 times as much.
New Jersey has 21 counties and the effective property tax rate runs from 1.32% in Cape May County to 3.08% in Camden County. Move to the wrong county in the better state and you have given back more than the move gained you, twice over.
Which reframes the question. Rather than "New Jersey or New York", the decision that carries the money is which county inside New Jersey — and the answer is not visible on any comparison that stops at the state line. Set both in the calculator above and every figure on this page recomputes on your actual rates rather than two medians.
The same logic applies to the losing side: New York has counties cheaper than the median used here too, and for a reader who is staying put, moving county at home may be the better version of this decision.
Where every number here comes from
Four sources, each read off the body that publishes it:
US Bureau of Economic Analysis — Regional Price Parities by State and Metro Area, 2024 (released 19 February 2026) — read 2026-09-08. https://www.bea.gov/data/prices-inflation/regional-price-parities-state-and-metro-area
IRS — Revenue Procedure for the tax year (federal brackets, standard deduction and FICA) — read 2026-09-02. https://www.irs.gov/
Each state's own department of revenue (state income tax rates and deductions), verified one state at a time — read 2026-09-02. https://estimatetax.net/sources/
US Census Bureau, American Community Survey (county effective property tax rates) — read 2026-08-31. https://data.census.gov/
The cost of living index is the part worth checking, because it is where comparison sites usually reach for something crowd-sourced. The Regional Price Parities are produced by the Bureau of Economic Analysis, cover every state and metro area, and are published with a methodology document. The figures here are the 2024 release and are not extrapolated forward.
And what this page does not model:
— The cost of living index is the BEA's Regional Price Parity for 2024, the most recent published. It is not extrapolated to the current year, and it is a state-wide average — inside a state, a metro area and a rural county differ by more than most state pairs do.
— Moving costs, state transfer taxes on buying a home, and the cost of selling the one you have are not included. On a short stay they can outweigh every annual difference on this page.
— Sales tax is not modelled. It is inside the BEA index — that is what a price parity measures — but it is not broken out separately here.
— The comparison assumes the same salary in both places unless you change it. In practice a job in a high-cost state usually pays more, which is exactly what the break-even figure is for.
— Health insurance, childcare and car insurance vary enormously by state and are only inside the index as averages. If any of the three is a large part of your budget, it deserves its own arithmetic.
Where to go next
Questions
- Is it cheaper to live in New Jersey or New York?
- New Jersey, by $51 a year in real purchasing power on $100,000 with a $400,000 home. The take-home difference is only $603; the rest comes from the cost of living, where New Jersey indexes at 108.8 and New York at 107.9 against a national average of 100.
- How much do I need to earn in New York to match $100,000 in New Jersey?
- $100,086 — 0.1% more. That accounts for federal tax, FICA, state tax, property tax and the price level in each state.
- What are the taxes in New Jersey vs New York?
- On $100,000: state income tax of $4,180 in New Jersey against $4,860 in New York, and property tax of $8,818 against $8,741 on a $400,000 home at median county rates. Federal tax and FICA are identical in both — $13,170 and $7,650 — so any comparison showing a difference there is wrong.
- Does New York really have lower property tax?
- That depends entirely on the county, which is why a state-level answer is not much use. New York runs from 0.69% in Kings County to 3.0% in Orleans County — 4.4 times, or $9,232 a year on a $400,000 home. The median is 2.19%.
- How much is the difference over 10 years?
- $514 in today's purchasing power, at $51 a year. That excludes moving and housing transaction costs, which land in year one and can outweigh everything else on a short stay.
- Where does your cost of living data come from?
- The Bureau of Economic Analysis Regional Price Parities for 2024, an official index covering every state and metro area with a published methodology. Not a crowd-sourced database — and it comes broken into housing, goods, utilities and services, which matters because housing moves several times more than anything else.