New Providence cost of living index

In the event that the cost of living data was unavailable for this city, estimates based upon nearby cities were used. Each cost of living index is based on a national average of 100. If the amount is below 100, it is lower than the national average. If the amount is above 100, it is higher than the national average.
IndexNew ProvidenceNew JerseyNational
Cost of living index159131100
IndexNew ProvidenceNew JerseyNational
Goods & Services index112118100
Groceries index110116100
Health care index113111100
Housing index276166100
Transportation index111118100
Utilities index97110100
An overview of the general cost of living index for New Providence, NJ is displayed above for your reference. Residents in New Providence, NJ enjoy a cost of living index of 159. This index is 21% higher than the New Jersey average, and 59% higher than the national average. The following categories are used when determining the cost of living index for any given city: health care (5%), transportation (9%), utilities (10%), groceries (13%), housing (30%), and goods/services (33%). Clearly, housing and goods/services make up the majority of the formula for calculating the cost of living index. Because of this, the general cost of living for any given area can be estimated by looking at the cost of everyday goods in that area. For those living in New Providence, NJ, the average cost of goods and services is 5% lower than it is in New Jersey, and it is 12% higher than the national average.

Did you know?

  • The cost of living in New Providence is 21% higher than the New Jersey average.
  • The cost of living in New Providence is 59% higher than the national average.
  • The cost of housing in New Providence is 176% higher than the national average.
  • New Jersey general sales tax is 37% higher than the national average.
  • New Jersey state income tax is 37% lower than the national average.

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Compare New Providence, NJ Cost of living To Other Cities

Salary Calculator

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Groceries index
Health care index
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The salary calculator is used in order to provide a comparison of your current salary in New Providence, NJ to another city of your choice. The calculator will inform you of what your salary needs to be in any specific city in order for you to maintain your living standard based on what the city’s cost of living is. As an example, if you are seeking to move to a city that has a higher cost of living compared to New Providence, NJ, you would have to earn a higher income to maintain a standard of living that is similar. To get started with the New Providence, NJ salary calculator, input the new city’s name and then move the slider to indicate your current income. The salary calculator will now process the numbers and show you whether you need to earn more or less in the chosen city. A comprehensive breakdown of the cost of living will also be shown.

Median Income & Debt-To-Income Ratio

Median IncomePer YearPer MonthMax Budget (28% DTI)Max Budget (36% DTI)
Owners$160,509$13,376$3,745$4,816
Renters$53,750$4,479$1,254$1,613
If you want to find a good determining factor for the cost of living and the general affordability of housing in New Providence, NJ, all you must look at is the percentage of monthly income that should be spent on housing expenses, otherwise known as the debt-to-income ratio (DTI). Generally speaking, no more than 28 percent of your total gross income should be spent on your housing expenses and not more than 36 percent of your gross income on total expenses, including debts. In New Providence, NJ, the median monthly income is $160,509 for those who own their own homes. Under the standard rule, that income level would allow for $3,745 to be budgeted for housing expenses each month, at the most. Renters, on the other hand, earn about $53,750, per the median income in the area. That would allow for renters to spend up to $1,254 on monthly rental expenses.

New Jersey Sales Tax

StateGeneral Sales TaxWith Max Surtax
New Jersey7%7%

New Jersey Income Tax

StateIncome Tax (Low)Income Tax (High)
New Jersey1.4%8.97%
When you are determining the total cost of living in New Providence, NJ you will want to make sure you consider both the New Jersey sales tax and the New Jersey income tax rates. Sales tax come in the form of taxes levied on both services and goods that are sold. The sales tax rates are different state to state and range from zero sales tax to higher than 7%. The sales tax in New Jersey is 7%, with the highest surtax being 7%. Tax that is on income by the government is income tax. Different states have different income tax rates and these rates can be higher or lower dependent on the corresponding tax bracket. The state income tax rates are different state to state and range from no income tax to more than 9% income tax. The income tax rates in New Jersey have a range from 1.4% to 8.97%.

Goods & Services

ItemNew ProvidenceNational avg.Difference
Haircut $18.00$14.5923.3%
Beauty Salon $32.75$34.685.6%
Toothpaste $1.99$2.4719.5%
Shampoo $1.08$1.025.7%
Movie $11.70$9.8718.6%
Bowling $4.72$4.397.5%

Groceries

ItemNew ProvidenceNational avg.Difference
Ground Beef $4.44$4.480.8%
Fried Chicken $1.97$1.4634.6%
Milk $2.57$2.369.1%
Potatoes $3.39$3.0610.7%
Pizza $8.00$9.2413.4%
Beer $8.79$8.631.8%

Health Care

ItemNew ProvidenceNational avg.Difference
Optometrist $102.25$99.782.5%
Doctor $86.25$105.0317.9%
Dentist $119.50$88.7034.7%
Ibuprofen $10.32$9.419.6%
Lipitor $351.24$298.5017.7%

Housing

ItemNew ProvidenceNational avg.Difference
Home Price $579,100.00$175,700.00229.6%
Avg. Mortgage Payment $1,607.16$1,081.0348.7%
Apartment Rent $1,375.00$920.0049.5%

Transportation

ItemNew ProvidenceNational avg.Difference
Gasoline $2.17$2.093.7%
Tire Balancing $58.80$45.2929.8%

Utilities

ItemNew ProvidenceNational avg.Difference
All Electricity$155.83$170.808.8%
Phone $29.75$28.265.3%
Although the cost of living data is updated regularly, this cost of living information is to be used as estimates only as prices can change on an ongoing basis.

Nearby cities with low cost of living

City, StatePopulationCost of Living IndexNational Avg.
Zarephath, NJ01099%
Byram Center, NJ501099%
Victory Gardens, NJ1,64611212%
East Orange, NJ64,53811313%
Newark, NJ278,75011414%
New Providence, NJ12,31415959%

Cities with similar population

City, StatePopulationCost of Living IndexNational Avg.
Arkansas City, KS12,31680-20%
Cleveland, MS12,31884-16%
Ringwood, NJ12,32013939%
Lake Tapps, WA12,30613333%
Eatontown, NJ12,32314646%
New Providence, NJ12,31415959%
Source: The New Providence, NJ cost of living data displayed above is derived from the Council for Community and Economic Research (C2ER) for the fourth quarter of 2015.