New Jersey does not get enough credit. Wedged between two of the country’s most powerful cities, it gets dismissed as a corridor state, somewhere people pass through on the way to New York or Philadelphia. But the 9 million people who call it home know something outsiders miss: it is one of the most livable states in the country, if you know where to look.
This guide gives you the full picture before you commit, covering real costs, regional differences, tax realities, and commute truths.
Is New Jersey Expensive to Live In?
Yes, but the answer is more complicated than that. New Jersey’s cost of living runs about 20 to 25 percent above the national average, driven largely by housing and property taxes. However, the state spans 565 municipalities, and the gap between the most expensive and the most affordable ZIP codes is enormous. You are not choosing between “expensive” and “affordable.” You are choosing which New Jersey you want to live in.
The median home price in New Jersey in 2025 was around $515,000, but that figure masks a wide variation. A three-bedroom home in Bergen County near a train station can exceed $900,000. That same budget in Salem County or Cumberland County gets you far more space and land. Renters in Jersey City and Hoboken face prices close to Manhattan, with one-bedroom apartments regularly running $2,800 to $3,500 per month. Move 30 minutes south or west, and those numbers drop considerably.
New Jersey’s grocery sales tax exemption, strong public school system, and access to major job markets make the higher sticker price more justifiable than it first appears. Property taxes, however, are not negotiable and will be your single biggest budget line item if you buy a home.
New Jersey Property Taxes: What to Expect
New Jersey consistently ranks first or second in the nation for property taxes. The average effective rate hovers around 2.2 to 2.4 percent, compared to a national average of roughly 1.1 percent. On a $500,000 home, that translates to $11,000 to $12,000 per year, roughly $900 to $1,000 per month on top of your mortgage payment.
That number will shape your entire home search. Run the math before you fall in love with a property, and remember that tax rates vary by municipality. Two homes half a mile apart can carry meaningfully different annual bills depending on which township they sit in.
The trade-off is real. Districts with the highest rates are often home to the state’s best public schools, well-maintained infrastructure, and low crime rates. Families who would otherwise pay $25,000 to $40,000 per year in private school tuition often find that paying $14,000 in property taxes for an excellent public district is a legitimate value. If taxes are your primary concern, look south, where Burlington, Gloucester, and Salem counties carry significantly lower rates.
Best Places to Live in New Jersey in 2026
New Jersey’s regions are distinct enough that choosing a home really means choosing a lifestyle.
Northern New Jersey offers urban energy and maximum access to New York City. Hudson County, which includes Jersey City, Hoboken, and Weehawken, provides the fastest commute to Midtown Manhattan outside of Brooklyn. PATH trains run directly to 33rd Street and the World Trade Center in under 20 minutes. Bergen County, just north of the city, combines suburban comfort with strong commuter infrastructure. Towns like Ridgewood, Glen Rock, and Tenafly are consistent favorites for families seeking excellent schools and walkable downtowns.
Central New Jersey represents the practical sweet spot for many transplants. Towns like Westfield, Cranford, Metuchen, and Somerville offer good schools, more manageable home prices than North Jersey, and solid NJ Transit service into the city. Princeton and the surrounding area attract professionals in pharmaceutical, biotech, and academic fields, with a strong local job market that reduces dependence on long commutes.
Southern New Jersey is the state’s best-kept secret. Communities like Cherry Hill, Haddonfield, Collingswood, and Moorestown offer a high-quality suburban lifestyle at prices that feel almost surprising compared to North Jersey. PATCO Speedline service connects South Jersey directly to Center City Philadelphia in under 30 minutes. The culture leans toward Philadelphia, the pace is slower, and the housing is more generous.
The Jersey Shore stretches across Ocean and Monmouth counties and offers genuine coastal living for year-round residents willing to budget for flood insurance and storm preparation. Towns like Manasquan and Spring Lake are family-oriented and quieter, while Asbury Park offers a livelier arts and dining scene.
Commuting to New York City from New Jersey
The NYC commute defines daily life for a large portion of New Jersey’s population, and understanding it before you move is essential.
NJ Transit rail serves dozens of towns from the Delaware River to the Hudson. The Morris and Essex Line, the Main and Bergen Line, and the Northeast Corridor offer direct service to Penn Station in 45 to 75 minutes, depending on origin. The Midtown Direct service is particularly valued and is reflected in home prices along those routes.
PATH trains offer faster, more frequent service from Hudson County stations, but their coverage is limited. For commuters whose offices are in Lower Manhattan or Midtown, Jersey City and Hoboken are genuinely competitive with living in Brooklyn or Queens, and sometimes more affordable.
Driving into Manhattan is expensive. The Hudson River crossings are heavily tolled and congested during rush hours, and NYC parking can run $400 to $700 per month. Congestion pricing has also reshaped commute costs for drivers, so research the current toll structure before committing to a driving routine.
Taxes, Income, and Everyday Costs
New Jersey uses a progressive income tax with rates ranging from 1.4 to 10.75 percent at the top bracket. Households in the middle-income range generally pay between 5.5 and 6.37 percent. This is higher than Pennsylvania’s flat 3.07 percent but lower than New York’s combined state and city rate for NYC residents.
The state sales tax is 6.625 percent, but New Jersey exempts groceries, most clothing, and prescription medications. That exemption meaningfully reduces everyday costs compared to states with broader sales tax applications.
Remote workers and hybrid employees should pay close attention to the tax situation if their employer is based in New York. Consulting a tax professional before relocating is worth the investment.
What New Jersey Gets Right
The public school system is among the strongest in the country. New Jersey consistently ranks among the top five states for K-12 education outcomes, and the investment in local schools is evident in the results.
Access is unmatched. You can be in Manhattan for a show, in the Pine Barrens for a hike, at the Jersey Shore for the weekend, or in Philadelphia for a game, all within an hour or two of most of the state. The geographic variety packed into 8,700 square miles is genuinely impressive.
Healthcare infrastructure is strong, anchored by major systems including RWJBarnabas Health, Atlantic Health System, and Hackensack Meridian Health, with Penn Medicine and Jefferson Health serving South Jersey.
Planning Your Move to New Jersey
A successful relocation to New Jersey in 2026 requires preparation, not because the state is difficult to navigate, but because the variation between towns makes early research critical.
Start by locking in your priorities: maximum commute time, school district quality, housing budget including property taxes, and lifestyle preferences. Visit target towns on weekday mornings and evenings to experience the actual commute, not just the posted train schedules. Build a monthly budget that includes your mortgage payment and property tax equivalent before falling in love with any neighborhood.
When you are ready to relocate, working with an experienced moving company in New Jersey will save you significant time and stress. Local movers understand building permit requirements, elevator reservations, street parking logistics in urban areas, and the seasonal demand that makes summer moves particularly challenging without professional help.
New Jersey is not a cheap state, and it will not pretend to be. But for the right person, whether that is a professional relocating for work, a family prioritizing education, or someone who wants coastal or urban life without living inside a major city, the Garden State delivers on its promises.