Median one-bedroom rent across the cities we track is $900 in Alabama versus $1,183 in New Jersey. Overall, Alabama runs roughly 24% cheaper on rent than New Jersey, its main day-to-day cost driver.
Median household income across tracked cities is $55,687 in Alabama and $53,766 in New Jersey — about 3% higher in Alabama. Alabama has a top state income tax rate of 5.00% and a 4% state sales tax; New Jersey has a top state income tax rate of 10.75% and a 6.625% state sales tax.
State Taxes
Sales Tax
4%
6.625%
+2.6 pp in New Jersey
Income Tax (top rate)
5.00%
10.75%
+5.8 pp in New Jersey
Housing (median across tracked cities)
Median 1BR Rent
$900
$1,183
+31% in New Jersey
Median Home Value
$148,500
$337,800
+127% in New Jersey
Income (median across tracked cities)
Median Household Income
$55,687
$53,766
+3% in Alabama
Climate (median across tracked cities)
Avg Annual Temperature
63.3°F
54.9°F
+8.4°F in Alabama
Alabama vs New Jersey — FAQ
- Is it cheaper to live in Alabama or New Jersey?
- Alabama is cheaper on rent — its median one-bedroom of $900 runs about 24% below New Jersey's $1,183, based on the cities we track in each state.
- How much more do you need to earn to live in Alabama than in New Jersey?
- To keep rent near the recommended 30% of gross income, based on median rent across tracked cities, you'd want to earn roughly $36,000 a year in Alabama versus $47,000 in New Jersey.
- Which has lower taxes, Alabama or New Jersey?
- Alabama has a top state income tax rate of 5.00% and a 4% state sales tax. New Jersey has a top state income tax rate of 10.75% and a 6.625% state sales tax.
Housing, income, and climate are medians across the 3/3 cities we track in Alabama/New Jersey — not population-weighted statewide figures. Taxes are exact state-level rates. Sources: US Census Bureau, ACS 5-Year; NOAA Climate Normals 1981–2010; Tax Foundation 2026.