Is it cheaper to live in El Paso or Newark?

El Paso, TX is cheaper. Its monthly baseline of $1,020 (1BR rent + utilities) runs about 16% below Newark, NJ's $1,210, mainly because of rent.

How much more do you need to earn to live in El Paso than in Newark?

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $33,000 a year in El Paso versus $39,000 in Newark.

Which has lower taxes, El Paso or Newark?

El Paso is taxed under Texas's rules (no state income tax and a 6.25% state sales tax); Newark under New Jersey's (a top state income tax rate of 10.75% and a 6.625% state sales tax).

El Paso vs Newark Cost of Living 2026

El Paso

Texas

$1,020/mo est.

Newark

New Jersey

$1,210/mo est.

Monthly estimate = 1BR rent + electricity + gas

A one-person monthly baseline (1BR rent plus typical utilities) runs $1,020 in El Paso, TX versus $1,210 in Newark, NJ. Overall, El Paso, TX is roughly 16% cheaper to live in day-to-day than Newark, NJ, driven mainly by rent.

Median household income is $58,734 in El Paso, TX and $48,416 in Newark, NJ — about 18% higher in El Paso, TX. Texas has no state income tax and a 6.25% state sales tax; New Jersey has a top state income tax rate of 10.75% and a 6.625% state sales tax.

El Paso, TX

Newark, NJ

Rent

Studio

$707

$1,111

+57% in Newark, NJ

1 Bedroom

$816

$978

+20% in Newark, NJ

2 Bedroom

$993

$1,386

+40% in Newark, NJ

3 Bedroom

$1,252

$1,695

+35% in Newark, NJ

Buying a Home

Median Home Value

$171,700

$337,800

+97% in Newark, NJ

Income

Median Household Income

$58,734

$48,416

+18% in El Paso, TX

Metro Median Wage (annual)

$39,510

$61,430

+55% in Newark, NJ

People & Lifestyle

Median Age

34.1 yr

34.8 yr

+0.7 yr in Newark, NJ

Homeownership

60.2%

24.1%

+36.1 pp in El Paso, TX

Bachelor's+ (25+)

27.5%

17.4%

+10.1 pp in El Paso, TX

Avg Commute

23.7 min

33.2 min

+9.5 min in Newark, NJ

Crime (per 100k/yr)

Violent Crime

319.7

582.5

+82% in Newark, NJ

Property Crime

1,509.3

1,961.8

+30% in Newark, NJ

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

Climate

Avg Annual Temperature

64.6°F

54.9°F

+9.7°F in El Paso, TX

Annual Precipitation

9.7 in

46.3 in

+36.5 in in Newark, NJ

Gas

Regular Gasoline

$3.62/gal

$3.86/gal

+7% in Newark, NJ

Area: Texas vs East Coast (PADD 1).

Public Transit

Base Fare (one-way)

$1.50

—

Adult base one-way fare — Sun Metro vs — (2026).

Utilities

Electricity (¢/kWh)

16.4

23.3

+42% in Newark, NJ

Natural Gas ($/MCF)

$30.48

$15.93

+48% in El Paso, TX

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

Groceries

Milk (gal)

$4.00

$4.31

+8% in Newark, NJ

Bread (lb)

$1.75

$1.92

+10% in Newark, NJ

Eggs (doz)

$2.21

$2.19

+1% in El Paso, TX

Ground Beef (lb)

$6.45

$6.90

+7% in Newark, NJ

Chicken (lb)

$1.90

$2.19

+15% in Newark, NJ

Bananas (lb)

$0.62

$0.69

+12% in Newark, NJ

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

State Taxes

Sales Tax (TX / NJ)

6.25%

6.625%

+0.4 pp in NJ

Income Tax (top rate)

None

10.75%

+10.8 pp in NJ

El Paso vs Newark — FAQ

Is it cheaper to live in El Paso or Newark?: El Paso, TX is cheaper. Its monthly baseline of $1,020 (1BR rent + utilities) runs about 16% below Newark, NJ's $1,210, mainly because of rent.
How much more do you need to earn to live in El Paso than in Newark?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $33,000 a year in El Paso versus $39,000 in Newark.
Which has lower taxes, El Paso or Newark?: El Paso is taxed under Texas's rules (no state income tax and a 6.25% state sales tax); Newark 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).