Median one-bedroom rent across the cities we track is $782 in Indiana versus $978 in New Jersey. Overall, Indiana runs roughly 20% cheaper on rent than New Jersey, its main day-to-day cost driver.
Median household income across tracked cities is $60,293 in Indiana and $48,416 in New Jersey — about 20% higher in Indiana. Indiana has a top state income tax rate of 2.95% and a 7% 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
7%
6.625%
+0.4 pp in Indiana
Income Tax (top rate)
2.95%
10.75%
+7.8 pp in New Jersey
Housing (median across tracked cities)
Median 1BR Rent
$782
$978
+25% in New Jersey
Median Home Value
$169,700
$337,800
+99% in New Jersey
Income (median across tracked cities)
Median Household Income
$60,293
$48,416
+20% in Indiana
Climate (median across tracked cities)
Avg Annual Temperature
53.2°F
54.9°F
+1.7°F in New Jersey
Indiana vs New Jersey — FAQ
- Is it cheaper to live in Indiana or New Jersey?
- Indiana is cheaper on rent — its median one-bedroom of $782 runs about 20% below New Jersey's $978, based on the cities we track in each state.
- How much more do you need to earn to live in Indiana 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 $31,000 a year in Indiana versus $39,000 in New Jersey.
- Which has lower taxes, Indiana or New Jersey?
- Indiana has a top state income tax rate of 2.95% and a 7% 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 3/1 cities we track in Indiana/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.