Median one-bedroom rent across the cities we track is $964 in Michigan versus $1,183 in New Jersey. Overall, Michigan runs roughly 19% cheaper on rent than New Jersey, its main day-to-day cost driver.
Median household income across tracked cities is $65,526 in Michigan and $53,766 in New Jersey — about 18% higher in Michigan. Michigan has a top state income tax rate of 4.25% 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
Housing (median across tracked cities)
Income (median across tracked cities)
Climate (median across tracked cities)
Michigan vs New Jersey — FAQ
- Is it cheaper to live in Michigan or New Jersey?
- Michigan is cheaper on rent — its median one-bedroom of $964 runs about 19% 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 Michigan 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 $39,000 a year in Michigan versus $47,000 in New Jersey.
- Which has lower taxes, Michigan or New Jersey?
- Michigan has a top state income tax rate of 4.25% 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 3/3 cities we track in Michigan/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.