Median one-bedroom rent across the cities we track is $877 in Kentucky versus $978 in New Jersey. Overall, Kentucky runs roughly 10% cheaper on rent than New Jersey, its main day-to-day cost driver.
Median household income across tracked cities is $64,731 in Kentucky and $48,416 in New Jersey — about 25% higher in Kentucky. Kentucky has a top state income tax rate of 3.50% and a 6% 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
6%
6.625%
+0.6 pp in New Jersey
Income Tax (top rate)
3.50%
10.75%
+7.3 pp in New Jersey
Housing (median across tracked cities)
Median 1BR Rent
$877
$978
+12% in New Jersey
Median Home Value
$232,100
$337,800
+46% in New Jersey
Income (median across tracked cities)
Median Household Income
$64,731
$48,416
+25% in Kentucky
Climate (median across tracked cities)
Avg Annual Temperature
58.0°F
54.9°F
+3.1°F in Kentucky
Kentucky vs New Jersey — FAQ
- Is it cheaper to live in Kentucky or New Jersey?
- Kentucky is cheaper on rent — its median one-bedroom of $877 runs about 10% 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 Kentucky 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 $35,000 a year in Kentucky versus $39,000 in New Jersey.
- Which has lower taxes, Kentucky or New Jersey?
- Kentucky has a top state income tax rate of 3.50% and a 6% 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 Kentucky/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.