State Comparison
New Jersey vs Pennsylvania
Side-by-side comparison of 16 financial metrics using documented public datasets and estimates, with sources listed below.
Overall Score
Cost of Living
Housing
Taxes
Income & Employment
Business
Insurance & Living
Key Takeaways
- 1
Pennsylvania leads in 11 of 16 financial metrics, making it the more favorable state overall.
- 2
Housing: Median home prices are $585,000 in New Jersey vs $294,000 in Pennsylvania — a $291,000 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 1.88% vs 1.26%.
- 4
Cost of Living: New Jersey's index is 118.8 and Pennsylvania's is 96.2 (national average = 100).
Run the Numbers
Use our free calculators with real New Jersey and Pennsylvania data to model your specific scenario.
Frequently Asked Questions
Is New Jersey or Pennsylvania more affordable?
Pennsylvania has a lower cost of living index (96.2) compared to New Jersey (118.8), 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?
It depends on what you earn, spend, and own — the three rates below apply to different bases (income, purchases, and home value), so they cannot be added into a single burden figure. On the headline rates alone, Pennsylvania is lower on more of them. New Jersey has a 10.75% top income tax, 6.625% state sales tax, and a 1.88% effective property tax rate. Pennsylvania has a 3.07% top income tax, 6% state sales tax, and a 1.26% effective property tax rate.
What are housing costs in New Jersey vs Pennsylvania?
The typical home value in New Jersey is $585,000 compared to $294,000 in Pennsylvania (Zillow Home Value Index, June 2026). For renters, HUD's FY2026 Fair Market Rent for a 2-bedroom unit — the 40th-percentile gross rent, not an average — is $2,282/month in New Jersey vs $1,501/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 $7 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 11 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.
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Related Comparisons
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 drawn from the U.S. Census Bureau (American Community Survey), the Tax Foundation, HUD Fair Market Rents, Zillow's Home Value Index, the NAIC's insurance databases, the U.S. Department of Labor, C2ER's Cost of Living Index, and state agencies, to give you a comprehensive overview.
New Jersey (NJ) has a median household income of $104,294 with a cost of living index of 118.8. Pennsylvania (PA) has a median household income of $77,545 with a cost of living index of 96.2. Income figures are Census ACS 1-year estimates (table B19013, 2024); the cost-of-living index is C2ER's Q1 2026 survey via MERIC, where 100 is the national average of surveyed cities.
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.
Sources per metric are named in each row's note above. Last reviewed . Some values are estimates; consult a qualified professional for financial advice.