Overall 58%
Goods & Services 14%
Housing 172%
Date & Last Updated: This data reflects 2020 and was released from C2ER in January, 2021; this is the most current data available.
The cost of living index is based on a national average of 100. For example, if the cost of living is 90, then it is 10% lower than average. If the cost of living is 110, then it is 10% higher than average. The breakdown for each index is as follows: goods & services (33%), groceries (13%), health care (5%), housing (30%), transportation (9%) and utilities (10%). If the cost of living data was unavailable for this city, estimates based upon nearby cities were used.
IndexParamusNew JerseyNational
Cost of living158121100
Goods & Services114107100
Health care9798100

Key findings

  • The cost of living in Paramus is 30% higher than the New Jersey average
  • The cost of living in Paramus is 58% higher than the national average
  • Paramus housing is 172% higher than the national average
  • New Jersey general sales tax is 30% higher than the national average
  • New Jersey state income tax is 43% lower than the national average

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Compare Paramus, NJ Cost of Living

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      Price difference in compared to
      Cost of living index
      Goods & Services index
      Groceries index
      Health care index
      Housing index
      Transportation index
      Utilities index

      Median Income & Debt-To-Income Ratio

      Median IncomePer YearPer MonthMax Budget (28% DTI)Max Budget (36% DTI)
      A good way to judge both the affordability of the housing and the cost of living in Paramus is by simply calculating the maximum that should be spent on housing, otherwise known as the debt-to-income ratio (DTI). The plan is to avoid spending more than 28 percent of the gross income on costs that pertain to housing and no more than 36 percent on all expenses and debts. Paramus has a median income of about $114,601 for people who own homes. Based on that number, a maximum of $2,674 should be spent on expenses related to housing. Renters have a slightly different median income, which is $46,512. Based on this average, renters should spend no more than $1,085 on all rental costs if they want to maintain a non-impoverished standard of living.

      New Jersey Sales Tax

      StateGeneral Sales TaxWith Max Surtax
      New Jersey6.625%12.625%

      New Jersey Income Tax

      StateIncome Tax (Low)Income Tax (High)
      New Jersey1.4%10.75%

      Goods & Services

      ItemParamusNational avg.Difference
      Haircut $20.93$18.6212.4%
      Beauty Salon $36.53$39.056.4%
      Toothpaste $2.22$2.345.2%
      Shampoo $1.00$1.065.7%
      Movie $12.49$10.6816.9%
      Bowling $18.00$14.6722.7%


      ItemParamusNational avg.Difference
      Ground Beef $4.09$4.223.1%
      Fried Chicken $1.79$1.3929.2%
      Milk $2.44$2.0518.9%
      Potatoes $3.25$3.291.3%
      Pizza $11.36$10.626.9%
      Beer $9.32$9.380.6%

      Health Care

      ItemParamusNational avg.Difference
      Optometrist $106.00$108.572.4%
      Doctor $91.00$116.1721.7%
      Dentist $102.33$99.133.2%
      Ibuprofen $9.04$9.686.6%
      Lipitor $541.96$466.9216.1%


      ItemParamusNational avg.Difference
      Home Price $565,300.00$184,700.00206.1%
      Avg. Mortgage Payment $1,923.50$1,197.4260.6%
      Apartment Rent $1,838.00$949.0093.7%


      ItemParamusNational avg.Difference
      Gasoline $2.37$2.226.3%
      Tire Balancing $54.12$50.078.1%


      ItemParamusNational avg.Difference
      All Electricity$178.53$167.676.5%
      Phone $179.87$175.642.4%
      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.
      Greenville CDP (Greene County), NY60411111%
      East Orange, NJ64,62111010%
      Silver Lake, NJ4,00711313%
      Paterson, NJ146,89411414%
      Silver Lake CDP (Warren County), NJ32011515%
      Paramus, NJ26,79515858%

      Cities with similar population

      City, StatePopulationCost of Living IndexNational Avg.
      Horn Lake, MS26,78582-18%
      Norco, CA26,80914747%
      Wooster, OH26,77386-14%
      Bristol, TN26,73484-16%
      Bessemer, AL26,85686-14%
      Paramus, NJ26,79515858%
      Source: The Paramus, NJ cost of living data displayed above is derived from the Council for Community and Economic Research (C2ER) for 2020.