Is it cheaper to live in Little Rock or Newark?

Little Rock, AR is cheaper. Its monthly baseline of $1,080 (1BR rent + utilities) runs about 11% below Newark, NJ's $1,210, mainly because of electricity costs.

How much more do you need to earn to live in Little Rock than in Newark?

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $36,000 a year in Little Rock versus $39,000 in Newark.

Which has lower taxes, Little Rock or Newark?

Little Rock is taxed under Arkansas's rules (a top state income tax rate of 3.90% and a 6.5% state sales tax); Newark under New Jersey's (a top state income tax rate of 10.75% and a 6.625% state sales tax).

Little Rock vs Newark Cost of Living 2026

Little Rock

Arkansas

$1,080/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 $1,080 in Little Rock, AR versus $1,210 in Newark, NJ. Overall, Little Rock, AR is roughly 11% cheaper to live in day-to-day than Newark, NJ, driven mainly by electricity costs.

Median household income is $60,583 in Little Rock, AR and $48,416 in Newark, NJ — about 20% higher in Little Rock, AR. Arkansas has a top state income tax rate of 3.90% and a 6.5% state sales tax; New Jersey has a top state income tax rate of 10.75% and a 6.625% state sales tax.

Little Rock, AR

Newark, NJ

Rent

Studio

$981

$1,111

+13% in Newark, NJ

1 Bedroom

$904

$978

+8% in Newark, NJ

2 Bedroom

$1,064

$1,386

+30% in Newark, NJ

3 Bedroom

$1,292

$1,695

+31% in Newark, NJ

Buying a Home

Median Home Value

$221,200

$337,800

+53% in Newark, NJ

Income

Median Household Income

$60,583

$48,416

+20% in Little Rock, AR

Metro Median Wage (annual)

$45,790

$61,430

+34% in Newark, NJ

People & Lifestyle

Median Age

36.4 yr

34.8 yr

+1.6 yr in Little Rock, AR

Homeownership

54.2%

24.1%

+30.1 pp in Little Rock, AR

Bachelor's+ (25+)

44.0%

17.4%

+26.6 pp in Little Rock, AR

Avg Commute

18.3 min

33.2 min

+14.9 min in Newark, NJ

Crime (per 100k/yr)

Violent Crime

1,673

582.5

+65% in Little Rock, AR

Property Crime

5,251.5

1,961.8

+63% in Little Rock, AR

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

Climate

Avg Annual Temperature

62.7°F

54.9°F

+7.8°F in Little Rock, AR

Annual Precipitation

49.8 in

46.3 in

+3.5 in in Little Rock, AR

Gas

Regular Gasoline

$3.62/gal

$3.86/gal

+7% in Newark, NJ

Area: Gulf Coast (PADD 3) vs East Coast (PADD 1).

Utilities

Electricity (¢/kWh)

14.4

23.3

+62% in Newark, NJ

Natural Gas ($/MCF)

$25.93

$15.93

+39% in Little Rock, AR

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 Little Rock, AR

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 (AR / NJ)

6.5%

6.625%

+0.1 pp in NJ

Income Tax (top rate)

3.90%

10.75%

+6.8 pp in NJ

Little Rock vs Newark — FAQ

Is it cheaper to live in Little Rock or Newark?: Little Rock, AR is cheaper. Its monthly baseline of $1,080 (1BR rent + utilities) runs about 11% below Newark, NJ's $1,210, mainly because of electricity costs.
How much more do you need to earn to live in Little Rock than in Newark?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $36,000 a year in Little Rock versus $39,000 in Newark.
Which has lower taxes, Little Rock or Newark?: Little Rock is taxed under Arkansas's rules (a top state income tax rate of 3.90% and a 6.5% 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).