Newark 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.
IndexNewarkNew JerseyNational
Cost of living index114131100
IndexNewarkNew JerseyNational
Goods & Services index115118100
Groceries index106116100
Health care index107111100
Housing index123166100
Transportation index111118100
Utilities index98110100
Displayed above is a general overview of the Newark, NJ cost of living index. The overall cost of living index in Newark, NJ is 114, which is 13% lower than the New Jersey average and 14% higher than the national average. The cost of living index is created from the following categories: goods/services (33%), groceries (13%), health care (5%), housing (30%), transportation (9%) and utilities (10%). As you can see, goods/services and housing make up the majority of the overall cost of living index. Everyday goods and services can be a good indicator of the general cost of goods in a given city. In this case, the goods and services in Newark, NJ are 3% lower than the New Jersey average and 15% higher than the national average.

Did you know?

  • The cost of living in Newark is 13% lower than the New Jersey average.
  • The cost of living in Newark is 14% higher than the national average.
  • The cost of housing in Newark is 23% 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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Salary Calculator

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Use the salary calculator to compare your current income in Newark, NJ to any other city in the country. The calculator will tell you how much income you would need to make in a particular city to live at the same level based on the cost of living in each city. For example, if the cost of living in the city you are looking to move to is higher than that of Newark, NJ, then you would need to earn a higher salary in order to enjoy the same standard of living. To use the Newark, NJ salary calculator, enter the name of the new city, then move the slider to your current salary level. The salary calculator will do the rest and let you know if your salary would need to increase or decrease for the new city. You will also see a complete overview of the cost of living.

Median Income & Debt-To-Income Ratio

Median IncomePer YearPer MonthMax Budget (28% DTI)Max Budget (36% DTI)
Owners$64,151$5,346$1,497$1,925
Renters$28,174$2,348$657$845
How much of your monthly income goes to housing can tell you whether or not you can afford housing in Newark, NJ, as well as what the average cost of living is. Generally, a good rule to follow is that the debt-to-income (DTI) level you want to maintain is 28 percent or less of your income on your rent or mortgage payment and not more than 36 percent of income on all expenses and debts. In Newark, NJ homeowners have a median income of $64,151. Using that number, you will come up with a maximum of $1,497 per month that can be spent on the cost of housing. For those who are renting instead of owning, the median income is $28,174, which means there is a maximum of $657 to be spent on the costs of renting a home or apartment.

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%
For those who live in Newark, NJ and want to know what the true cost of living is, they ought to look at both the New Jersey income tax rate and the New Jersey sales tax rate. By sales tax, we mean the taxes that are included whenever a person is purchasing any goods or services. The amount that is taxed depends upon the particular state, where some states have a sales tax of zero percent while others can have a tax higher than seven percent. In New Jersey, the sales tax is 7%, while the most you'll pay in surtax is 7%. There is also income tax to consider, which is based upon the amount of money made in a year. Just like sales tax, income tax depends upon the particular state but also depends upon what tax bracket the person is in. Income tax for the state can be higher than nine percent in some states to zero percent in others. For those that live in New Jersey, the income tax rate ranges between 1.4% to 8.97%.

Goods & Services

ItemNewarkNational avg.Difference
Haircut $19.00$14.5930.2%
Beauty Salon $33.75$34.682.7%
Toothpaste $2.29$2.477.4%
Shampoo $1.00$1.022.2%
Movie $11.70$9.8718.6%
Bowling $4.55$4.393.6%

Groceries

ItemNewarkNational avg.Difference
Ground Beef $4.39$4.481.9%
Fried Chicken $1.99$1.4635.9%
Milk $2.77$2.3617.5%
Potatoes $3.39$3.0610.7%
Pizza $8.00$9.2413.4%
Beer $9.19$8.636.5%

Health Care

ItemNewarkNational avg.Difference
Optometrist $91.25$99.788.5%
Doctor $90.00$105.0314.3%
Dentist $107.25$88.7020.9%
Ibuprofen $9.49$9.410.8%
Lipitor $341.01$298.5014.2%

Housing

ItemNewarkNational avg.Difference
Home Price $229,600.00$175,700.0030.7%
Avg. Mortgage Payment $1,790.20$1,081.0365.6%
Apartment Rent $978.00$920.006.3%

Transportation

ItemNewarkNational avg.Difference
Gasoline $2.17$2.093.7%
Tire Balancing $59.16$45.2930.6%

Utilities

ItemNewarkNational avg.Difference
All Electricity$159.41$170.806.7%
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.
East Orange, NJ64,53811313%
Roselle, NJ21,34811414%
Perth Amboy, NJ51,72711717%
Plainfield, NJ50,42311717%
Silver Lake, NJ3,59412323%
Newark, NJ278,75011414%

Cities with similar population

City, StatePopulationCost of Living IndexNational Avg.
Greensboro, NC276,22593-7%
Toledo, OH283,93286-14%
Plano, TX271,16611313%
Henderson, NV266,24511111%
Lincoln, NE265,81193-7%
Newark, NJ278,75011414%
Source: The Newark, NJ cost of living data displayed above is derived from the Council for Community and Economic Research (C2ER) for the fourth quarter of 2015.