Is it cheaper to live in Annapolis or Paterson?

Paterson, NJ is cheaper. Its monthly baseline of $1,430 (1BR rent + utilities) runs about 22% below Annapolis, MD's $1,830, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $64,000 a year in Annapolis versus $47,000 in Paterson.

Which has lower taxes, Annapolis or Paterson?

Annapolis is taxed under Maryland's rules (a top state income tax rate of 6.50% 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).

Annapolis vs Paterson Cost of Living 2026

Annapolis

Maryland

$1,830/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 $1,830 in Annapolis, MD versus $1,430 in Paterson, NJ. Overall, Paterson, NJ is roughly 22% cheaper to live in day-to-day than Annapolis, MD, driven mainly by rent.

Median household income is $104,257 in Annapolis, MD and $53,766 in Paterson, NJ — about 48% higher in Annapolis, MD. Maryland has a top state income tax rate of 6.50% 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.

Annapolis, MD

Paterson, NJ

Rent

Studio

$1,239

$786

+37% in Annapolis, MD

1 Bedroom

$1,598

$1,183

+26% in Annapolis, MD

2 Bedroom

$1,864

$1,468

+21% in Annapolis, MD

3 Bedroom

$2,232

$1,729

+23% in Annapolis, MD

Buying a Home

Median Home Value

$510,200

$335,400

+34% in Annapolis, MD

Income

Median Household Income

$104,257

$53,766

+48% in Annapolis, MD

Metro Median Wage (annual)

$59,070

$61,430

+4% in Paterson, NJ

People & Lifestyle

Median Age

40.9 yr

33.3 yr

+7.6 yr in Annapolis, MD

Homeownership

59.8%

26.2%

+33.6 pp in Annapolis, MD

Bachelor's+ (25+)

53.7%

12.5%

+41.2 pp in Annapolis, MD

Avg Commute

28.7 min

23.1 min

+5.6 min in Annapolis, MD

Crime (per 100k/yr)

Violent Crime

806

1,010.1

+25% in Paterson, NJ

Property Crime

2,111.5

2,391.4

+13% 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

57.1°F

52.2°F

+4.9°F in Annapolis, MD

Annual Precipitation

—

49.0 in

Gas

Regular Gasoline

$3.94/gal

about equal

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

Utilities

Electricity (¢/kWh)

21.8

24.9

+14% in Paterson, NJ

Natural Gas ($/MCF)

$22.57

$17.68

+22% in Annapolis, MD

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

Groceries

Milk (gal)

$4.00

$4.31

+8% in Paterson, NJ

Bread (lb)

$1.75

$1.92

+10% in Paterson, NJ

Eggs (doz)

$2.21

$2.19

+1% in Annapolis, MD

Ground Beef (lb)

$6.45

$6.90

+7% in Paterson, NJ

Chicken (lb)

$1.90

$2.19

+15% in Paterson, NJ

Bananas (lb)

$0.62

$0.69

+12% in Paterson, NJ

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

State Taxes

Sales Tax (MD / NJ)

6.625%

+0.6 pp in NJ

Income Tax (top rate)

6.50%

10.75%

+4.3 pp in NJ

Annapolis vs Paterson — FAQ

Is it cheaper to live in Annapolis or Paterson?: Paterson, NJ is cheaper. Its monthly baseline of $1,430 (1BR rent + utilities) runs about 22% below Annapolis, MD's $1,830, mainly because of rent.
How much more do you need to earn to live in Annapolis than in Paterson?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $64,000 a year in Annapolis versus $47,000 in Paterson.
Which has lower taxes, Annapolis or Paterson?: Annapolis is taxed under Maryland's rules (a top state income tax rate of 6.50% 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).