| Index | Madison | New Jersey | National |
| Cost of living | 180 | 125 | 100 |
| Groceries | 108 | 108 | 100 |
| Health care | 111 | 112 | 100 |
| Housing | 343 | 157 | 100 |
| Transportation | 110 | 114 | 100 |
| Utilities | 109 | 111 | 100 |
| Lifestyle & Entertainment | 108 | 113 | 100 |
| Household Items | 106 | 107 | 100 |
| Education & Childcare | 118 | 120 | 100 |
The cost of living in Madison affects the quality of life one can afford in this new location. It allows people to assess whether they can maintain their preferred lifestyle, including housing, leisure activities and dining options. Your total monthly expenditures can varry depending on the area, as well as many other factors. The cost of living in Madison is 180, which is 80% higher than the national average. Knowledge of the cost of living can help individuals make informed decisions about retirement savings, investments, and financial goals.
The cost of living in Madison is among the highest in the country, making it a very expensive place to live. Only a small fraction of regions boast a cost of living that is at least 20% higher than the national average, and regrettably, Madison falls into this category, which may not be suitable for those seeking an economically favorable living environment.
When it comes to the cost of living in Madison, housing costs are a real heavyweight, often hogging a significant chunk of your earnings. Sadly, in this area, housing expenses for both buying and renting were 242.7% more expensive compared to your average city. That means you'll be shelling out more for homes, rents, mortgage rates and insurance.
Is Madison an affordable place to live? It's a good question and one that you might want to ask when considering any new city, as affordability can play a huge role in the decision making process. The cost of living index (which we covered above), as well as housing costs and income levels play a vital role in determining the affordability of an area. The median home price in Madison is 302.5% higher than the national average, while the average monthly rent prices are 103% higher than average. The affordability of any location can also be influenced by median income levels. Madison has a median household income of $233,686, which is 187.3% higher than the national average.
Taxes: Cities that enforce higher taxes, covering both sales taxes and income taxes, can be a factor contributing to a higher cost of living. Paying more in taxes for everyday essentials like clothing and food inevitably leads to higher expenses. A higher income tax rate can further contribute to an overall elevated cost of living. In Madison, the baseline sales tax rate begins at 6.625%, and income tax rates start at 1.4%.
Urbanization: Urban areas with a wealth of amenities and employment opportunities tend to come with a higher price tag for living. Why? Well, more people want to be there, which drives up home prices and rents. On the flip side, less densely populated rural areas or places where there's not as much demand usually mean fewer attractions, things to do and slower job growth. That often results in a lower cost of living.
Housing: A sought-after location with high housing demand often leads to increased property values and rental rates, which can significantly inflate the overall cost of living. Conversely, areas with low housing demand, particularly in less desirable locales, tend to experience the opposite effect, causing prices to drop and contributing to a more affordable cost of living. In Madison, the housing index stands at 242.7% higher than the national average.
The Madison cost of living estimates above use a normalized U.S. average of 100 as the baseline for comparison. Housing values incorporate local home price and rental information from the U.S. Census, while all other estimates are AI-assisted and modeled using expected everyday expenses, local market trends, climate, and transportation-related cost pressures. The results are intended for practical city-to-city comparisons.
| Cost of living index | |
| Groceries index | |
| Health care index | |
| Housing index | |
| Transportation index | |
| Utilities index | |
| Lifestyle index | |
| Household index | |
| Educare index |
| Median Income | Per Year | Per Month | Max Budget (28% DTI) | Max Budget (36% DTI) |
| Owners | $278,348 | $23,196 | $6,494 | $8,351 |
| Renters | $125,407 | $10,451 | $2,926 | $3,763 |
| State | General Sales Tax | With Max Surtax |
| New Jersey | 6.625% | 12.625% |
| State | Income Tax (Low) | Income Tax (High) |
| New Jersey | 1.4% | 10.75% |
| City | Population | Cost of Living Index | National Avg. |
| Victory Gardens, NJ | 1,654 | 108 | 7.7% |
| East Orange, NJ | 66,655 | 115 | 15.1% |
| Roselle, NJ | 22,321 | 116 | 15.7% |
| Silver Lake CDP (Warren County), NJ | 326 | 117 | 17.3% |
| Newark, NJ | 290,764 | 120 | 19.8% |
| Madison, NJ | 17,048 | 180 | 79.6% |
| City | Population | Cost of Living Index | National Avg. |
| Selwyn, ON | 17,047 | n/a | |
| Ham Lake, MN | 17,046 | 118 | 17.6% |
| East Highland Park, VA | 17,051 | 99 | 0.9% |
| Lemay, MO | 17,056 | 88 | 11.8% |
| Pendleton, OR | 17,038 | 105 | 5.3% |
| Madison, NJ | 17,048 | 180 | 79.6% |
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