Paterson 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.
IndexPatersonNew JerseyNational
Cost of living index115123100
IndexPatersonNew JerseyNational
Goods & Services index114111100
Groceries index108110100
Health care index107102100
Housing index125158100
Transportation index111110100
Utilities index105100100
The above illustration supplies generalized information for the Paterson, NJ cost of living index. Compared to other cities in New Jersey and cities across the country, the cost of living index in Paterson, NJ is 115, which is 7% lower than the New Jersey average and 15% higher than that for the entire country. The index is comprised of the following criteria: cost of retail goods and services (33%), groceries (13%), health care (5%), housing (30%), cost of public/private transportation (9%) and utilities (10%). Everyday goods and services, along with housing account for 63 percent of the total cost of living index. Goods and services that are a necessity regardless of location provide an accurate general sense of the cost of living in one city versus another. As seen above, the cost of retail goods and services in Paterson, NJ are 2% higher than the average for New Jersey and 14% higher than the rest of the country.
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Did you know?

  • The cost of living in Paterson is 7% lower than the New Jersey average.
  • The cost of living in Paterson is 15% higher than the national average.
  • The cost of housing in Paterson is 25% higher than the national average.
  • New Jersey general sales tax is 30% higher than the national average.
  • New Jersey state income tax is 37% lower than the national average.

Compare Paterson, NJ Cost of living To Other Cities

Salary Calculator

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Goods & Services index
Groceries index
Health care index
Housing index
Transportation index
Utilities index
The salary calculator is used in order to provide a comparison of your current salary in Paterson, 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 Paterson, NJ, you would have to earn a higher income to maintain a standard of living that is similar. To get started with the Paterson, 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)
The affordability of the housing market in Paterson, NJ as well as the overall cost of living can be indicated accurately by what percent of the monthly income is spent on housing related costs. This is konwn as the debt-to-income ratio (DTI). The overall rule of thumb is that no more than 28% of your gross income should ever be used on the overall costs related to housing and no more than 36% of gross income on all expenses and debts. Among Paterson, NJ homeowners, the median income is $66,878. This indicates that a monthly maximum of $1,560 should be spent by homeowners on all housing related costs. Renters have a median income of $27,028. This indicates that renters should have a maximum of $631 used for their rent related monthly costs.

New Jersey Sales Tax

StateGeneral Sales TaxWith Max Surtax
New Jersey6.625%12.875%

New Jersey Income Tax

StateIncome Tax (Low)Income Tax (High)
New Jersey1.4%8.97%
When assessing the complete cost of living in Paterson, NJ, the New Jersey income tax and the New Jersey sales tax percentages should unquestionably be taken into consideration. Sales taxes aren't just levies imposed onto sold goods, but they also include taxes that are charged when services are provided for a fee. The rates are different from state to state and can run has high as 7 percent. Some states have no sales tax at all. The New Jersey maximum surtax is 12.875%, and the New Jersey sales tax is 6.625%. By contrast, income tax is an unfortunate obligation that is charged by the government against earnings. Just like sales taxes, the rates for income taxes differ from state to state. They also decrease or increase according to the individual's tax bracket. Tax rates can run as high as 9 percent, with a minimum of zero. Income tax rates range from 1.4% to 8.97% in New Jersey.

Goods & Services

ItemPatersonNational avg.Difference
Haircut $24.00$17.4937.2%
Beauty Salon $39.00$38.172.2%
Toothpaste $2.01$2.3213.4%
Shampoo $1.09$1.017.7%
Movie $12.14$10.7213.2%
Bowling $18.40$13.8632.7%


ItemPatersonNational avg.Difference
Ground Beef $3.85$3.901.3%
Fried Chicken $1.66$1.4018.9%
Milk $2.21$1.9612.6%
Potatoes $3.39$3.186.5%
Pizza $11.99$10.3915.4%
Beer $8.99$9.232.6%

Health Care

ItemPatersonNational avg.Difference
Optometrist $113.00$106.346.3%
Doctor $96.67$115.2516.1%
Dentist $121.00$98.3823.0%
Ibuprofen $8.95$9.263.4%
Lipitor $537.05$466.4715.1%


ItemPatersonNational avg.Difference
Home Price $236,000.00$184,700.0027.8%
Avg. Mortgage Payment $2,311.62$1,273.3281.5%
Apartment Rent $1,122.00$949.0018.2%


ItemPatersonNational avg.Difference
Gasoline $2.77$2.597.0%
Tire Balancing $59.00$48.9020.7%


ItemPatersonNational avg.Difference
All Electricity$184.45$167.6010.1%
Phone $177.03$163.428.3%
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, NJ64,62111111%
Newark, NJ280,13911212%
Silver Lake, NJ4,00711414%
Silver Lake CDP (Warren County), NJ32011717%
Prospect Park, NJ5,91911818%
Paterson, NJ146,89411515%

Cities with similar population

City, StatePopulationCost of Living IndexNational Avg.
Bridgeport, CT147,02211515%
Torrance, CA147,30716868%
Clarksville, TN146,28194-6%
Joliet, IL147,51598-2%
Naperville, IL145,78912828%
Paterson, NJ146,89411515%
Source: The Paterson, NJ cost of living data displayed above is derived from the Council for Community and Economic Research (C2ER) for 2019.
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