State Comparison

New Jersey vs Pennsylvania

Side-by-side comparison of 16 financial metrics including taxes, housing costs, cost of living, wages, and insurance — powered by verified government data.

Overall Score

5
New Jersey
NJ
1 tied
of 16 metrics
10
Pennsylvania
PA

Cost of Living

Cost of Living Index
NJ: 115.2
PA: 98.7
PA

Housing

Median Home Price
NJ: $470,000
PA: $265,000
PA
Median 2BR Rent
NJ: $1,590/mo
PA: $1,130/mo
PA
Closing Costs
NJ: 3.50%
PA: 3.20%
PA
Transfer Tax Rate
NJ: 0.40%
PA: 1.00%
NJ

Taxes

Property Tax Rate
NJ: 2.23%
PA: 1.58%
PA
Top Income Tax Rate
NJ: 10.75%
PA: 3.07%
PA
Sales Tax Rate
NJ: 6.63%
PA: 6.00%
PA
Capital Gains Tax Rate
NJ: 10.75%
PA: 3.07%
PA

Income & Employment

Median Household Income
NJ: $89,296
PA: $67,587
NJ
Minimum Wage
NJ: $15.49/hr
PA: $7.25/hr
NJ
Max Unemployment Benefit
NJ: $830/wk
PA: $572/wk
NJ

Business

LLC Filing Fee
NJ: $125
PA: $125
Tie
LLC Annual Fee
NJ: $75
PA: $0
PA

Insurance & Living

Avg Car Insurance
NJ: $1,920/yr
PA: $1,640/yr
PA
Avg Home Insurance
NJ: $1,360/yr
PA: $1,380/yr
NJ

Key Takeaways

  • 1

    Pennsylvania leads in 10 of 16 financial metrics, making it the more favorable state overall.

  • 2

    Housing: Median home prices are $470,000 in New Jersey vs $265,000 in Pennsylvania — a $205,000 difference.

  • 3

    Taxes: New Jersey has a 10.75% top income tax rate while Pennsylvania has a 3.07% top rate. Property tax rates are 2.23% vs 1.58%.

  • 4

    Cost of Living: New Jersey's index is 115.2 and Pennsylvania's is 98.7 (national average = 100).

Frequently Asked Questions

Is New Jersey or Pennsylvania more affordable?

Pennsylvania has a lower cost of living index (98.7) compared to New Jersey (115.2), where 100 is the national average. However, affordability depends on your specific situation — compare housing, taxes, and income together for a complete picture.

Which state has lower taxes — New Jersey or Pennsylvania?

Overall, Pennsylvania has a lower combined tax burden. New Jersey has a 10.75% top income tax, 6.625% sales tax, and 2.23% property tax. Pennsylvania has a 3.07% top income tax, 6% sales tax, and 1.58% property tax.

What are housing costs in New Jersey vs Pennsylvania?

The median home price in New Jersey is $470,000 compared to $265,000 in Pennsylvania. For renters, a 2-bedroom apartment averages $1,590/month in New Jersey vs $1,130/month in Pennsylvania.

Which state is better for starting a business — New Jersey or Pennsylvania?

LLC filing costs are $125 in New Jersey vs $125 in Pennsylvania, with annual fees of $75 and $0 respectively. New Jersey's 10.75% top tax rate compared to Pennsylvania's 3.07% rate may also factor into your decision.

Should I move from New Jersey to Pennsylvania?

It depends on your priorities. Pennsylvania wins in 10 of 16 metrics we compared. Use our free calculators to model your specific financial scenario — including salary, property tax, and cost of living for each state.

Comparing New Jersey and Pennsylvania

When deciding between living in New Jersey or Pennsylvania, the financial picture goes beyond just one metric. This comparison analyzes 16 key financial indicators sourced from the U.S. Census Bureau, Tax Foundation, HUD Fair Market Rent data, and Bureau of Labor Statistics to give you a comprehensive overview.

New Jersey (NJ) has a median household income of $89,296 with a cost of living index of 115.2. Pennsylvania (PA) has a median household income of $67,587 with a cost of living index of 98.7.

These numbers are estimates. Individual circumstances vary based on location within each state, family size, profession, and lifestyle. Use our free New Jersey calculator or Pennsylvania calculator to model your specific financial scenario.

Data sources: Census Bureau ACS, Tax Foundation, HUD FMR, BLS. Last verified January 2026. Calculators provide estimates only — consult a qualified professional for financial advice.