Median one-bedroom rent across the cities we track is $1,183 in New Jersey versus $1,032 in Rhode Island. Overall, Rhode Island runs roughly 13% cheaper on rent than New Jersey, its main day-to-day cost driver.
Median household income across tracked cities is $53,766 in New Jersey and $87,536 in Rhode Island — about 39% higher in Rhode Island. New Jersey has a top state income tax rate of 10.75% and a 6.625% state sales tax; Rhode Island has a top state income tax rate of 5.99% and a 7% state sales tax.
State Taxes
Housing (median across tracked cities)
Income (median across tracked cities)
Climate (median across tracked cities)
New Jersey vs Rhode Island — FAQ
- Is it cheaper to live in New Jersey or Rhode Island?
- Rhode Island is cheaper on rent — its median one-bedroom of $1,032 runs about 13% 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 New Jersey than in Rhode Island?
- To keep rent near the recommended 30% of gross income, based on median rent across tracked cities, you'd want to earn roughly $47,000 a year in New Jersey versus $41,000 in Rhode Island.
- Which has lower taxes, New Jersey or Rhode Island?
- New Jersey has a top state income tax rate of 10.75% and a 6.625% state sales tax. Rhode Island has a top state income tax rate of 5.99% and a 7% state sales tax.
Housing, income, and climate are medians across the 3/3 cities we track in New Jersey/Rhode Island — 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.