Median one-bedroom rent across the cities we track is $978 in New Jersey versus $1,142 in Tennessee. Overall, New Jersey runs roughly 14% cheaper on rent than Tennessee, its main day-to-day cost driver.
Median household income across tracked cities is $48,416 in New Jersey and $63,204 in Tennessee — about 23% higher in Tennessee. New Jersey has a top state income tax rate of 10.75% and a 6.625% state sales tax; Tennessee has no state income tax and a 7% state sales tax.
State Taxes
Sales Tax
6.625%
7%
+0.4 pp in Tennessee
Income Tax (top rate)
10.75%
None
+10.8 pp in New Jersey
Housing (median across tracked cities)
Median 1BR Rent
$978
$1,142
+17% in Tennessee
Median Home Value
$337,800
$270,100
+20% in New Jersey
Income (median across tracked cities)
Median Household Income
$48,416
$63,204
+31% in Tennessee
Climate (median across tracked cities)
Avg Annual Temperature
54.9°F
61.3°F
+6.4°F in Tennessee
New Jersey vs Tennessee — FAQ
- Is it cheaper to live in New Jersey or Tennessee?
- New Jersey is cheaper on rent — its median one-bedroom of $978 runs about 14% below Tennessee's $1,142, based on the cities we track in each state.
- How much more do you need to earn to live in New Jersey than in Tennessee?
- 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 New Jersey versus $46,000 in Tennessee.
- Which has lower taxes, New Jersey or Tennessee?
- New Jersey has a top state income tax rate of 10.75% and a 6.625% state sales tax. Tennessee has no state income tax and a 7% state sales tax.
Housing, income, and climate are medians across the 1/2 cities we track in New Jersey/Tennessee — 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.