Is it cheaper to live in Allentown or Paterson?

Allentown, PA is cheaper. Its monthly baseline of $1,340 (1BR rent + utilities) runs about 6% below Paterson, NJ's $1,430, mainly because of rent.

How much more do you need to earn to live in Allentown than in Paterson?

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $44,000 a year in Allentown versus $47,000 in Paterson.

Which has lower taxes, Allentown or Paterson?

Allentown is taxed under Pennsylvania's rules (a top state income tax rate of 3.07% and a 6% state sales tax); Paterson under New Jersey's (a top state income tax rate of 10.75% and a 6.625% state sales tax).

Allentown vs Paterson Cost of Living 2026

Allentown

Pennsylvania

$1,340/mo est.

Paterson

New Jersey

$1,430/mo est.

Monthly estimate = 1BR rent + electricity + gas

A one-person monthly baseline (1BR rent plus typical utilities) runs $1,340 in Allentown, PA versus $1,430 in Paterson, NJ. Overall, Allentown, PA is roughly 6% cheaper to live in day-to-day than Paterson, NJ, driven mainly by rent.

Median household income is $53,403 in Allentown, PA and $53,766 in Paterson, NJ — about 1% higher in Paterson, NJ. Pennsylvania has a top state income tax rate of 3.07% 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.

Allentown, PA

Paterson, NJ

Rent

Studio

$1,043

$786

+25% in Allentown, PA

1 Bedroom

$1,100

$1,183

+8% in Paterson, NJ

2 Bedroom

$1,271

$1,468

+15% in Paterson, NJ

3 Bedroom

$1,431

$1,729

+21% in Paterson, NJ

Buying a Home

Median Home Value

$188,900

$335,400

+78% in Paterson, NJ

Income

Median Household Income

$53,403

$53,766

+1% in Paterson, NJ

Metro Median Wage (annual)

$48,990

$61,430

+25% in Paterson, NJ

People & Lifestyle

Median Age

32.4 yr

33.3 yr

+0.9 yr in Paterson, NJ

Homeownership

42.3%

26.2%

+16.1 pp in Allentown, PA

Bachelor's+ (25+)

19.4%

12.5%

+6.9 pp in Allentown, PA

Avg Commute

24.8 min

23.1 min

+1.7 min in Allentown, PA

Crime (per 100k/yr)

Violent Crime

274.5

1,010.1

+268% in Paterson, NJ

Property Crime

1,591.5

2,391.4

+50% in Paterson, NJ

FBI Crime Data Explorer. Offenses per 100,000 residents per year; agency reporting practices vary, so this is approximate.

Climate

Avg Annual Temperature

51.2°F

52.2°F

+1.0°F in Paterson, NJ

Annual Precipitation

45.4 in

49.0 in

+3.7 in in Paterson, NJ

Gas

Regular Gasoline

$3.94/gal

about equal

Area: East Coast (PADD 1) vs East Coast (PADD 1).

Utilities

Electricity (¢/kWh)

21.7

24.9

+15% in Paterson, NJ

Natural Gas ($/MCF)

$26.08

$17.68

+32% in Allentown, PA

Residential, state-level averages (EIA). MCF = 1,000 cubic feet.

Groceries

Milk (gal)

$4.31

about equal

Bread (lb)

$1.92

about equal

Eggs (doz)

$2.19

about equal

Ground Beef (lb)

$6.90

about equal

Chicken (lb)

$2.19

about equal

Bananas (lb)

$0.69

about equal

Average prices — Northeast vs Northeast (BLS). Regional where available, otherwise U.S. average.

State Taxes

Sales Tax (PA / NJ)

6.625%

+0.6 pp in NJ

Income Tax (top rate)

3.07%

10.75%

+7.7 pp in NJ

Allentown vs Paterson — FAQ

Is it cheaper to live in Allentown or Paterson?: Allentown, PA is cheaper. Its monthly baseline of $1,340 (1BR rent + utilities) runs about 6% below Paterson, NJ's $1,430, mainly because of rent.
How much more do you need to earn to live in Allentown than in Paterson?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $44,000 a year in Allentown versus $47,000 in Paterson.
Which has lower taxes, Allentown or Paterson?: Allentown is taxed under Pennsylvania's rules (a top state income tax rate of 3.07% and a 6% state sales tax); Paterson under New Jersey's (a top state income tax rate of 10.75% and a 6.625% state sales tax).

Sources: US Census Bureau, ACS 5-Year (rent, income, home value, demographics); NOAA Climate Normals 1981–2010 (climate); EIA weekly retail (gas); Tax Foundation 2026 (state taxes).