Is it cheaper to live in Louisville or Newark?

Louisville, KY is cheaper. Its monthly baseline of $1,060 (1BR rent + utilities) runs about 12% below Newark, NJ's $1,210, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $35,000 a year in Louisville versus $39,000 in Newark.

Which has lower taxes, Louisville or Newark?

Louisville is taxed under Kentucky's rules (a top state income tax rate of 3.50% and a 6% state sales tax); Newark under New Jersey's (a top state income tax rate of 10.75% and a 6.625% state sales tax).

Louisville vs Newark Cost of Living 2026

Louisville

Kentucky

$1,060/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 $1,060 in Louisville, KY versus $1,210 in Newark, NJ. Overall, Louisville, KY is roughly 12% cheaper to live in day-to-day than Newark, NJ, driven mainly by rent.

Median household income is $64,731 in Louisville, KY and $48,416 in Newark, NJ — about 25% higher in Louisville, KY. Kentucky has a top state income tax rate of 3.50% 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.

Louisville, KY

Newark, NJ

Rent

Studio

$786

$1,111

+41% in Newark, NJ

1 Bedroom

$877

$978

+12% in Newark, NJ

2 Bedroom

$1,096

$1,386

+26% in Newark, NJ

3 Bedroom

$1,299

$1,695

+30% in Newark, NJ

Buying a Home

Median Home Value

$221,500

$337,800

+53% in Newark, NJ

Income

Median Household Income

$64,731

$48,416

+25% in Louisville, KY

Metro Median Wage (annual)

$48,370

$61,430

+27% in Newark, NJ

People & Lifestyle

Median Age

37.7 yr

34.8 yr

+2.9 yr in Louisville, KY

Homeownership

60.6%

24.1%

+36.5 pp in Louisville, KY

Bachelor's+ (25+)

33.4%

17.4%

+16.0 pp in Louisville, KY

Avg Commute

22.7 min

33.2 min

+10.5 min in Newark, NJ

Crime (per 100k/yr)

Violent Crime

763.4

582.5

+24% in Louisville, KY

Property Crime

3,536.6

1,961.8

+45% in Louisville, KY

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

Climate

Avg Annual Temperature

58.2°F

54.9°F

+3.3°F in Louisville, KY

Annual Precipitation

44.9 in

46.3 in

+1.3 in in Newark, NJ

Gas

Regular Gasoline

$3.94/gal

$3.86/gal

+2% in Louisville, KY

Area: Midwest (PADD 2) vs East Coast (PADD 1).

Public Transit

Base Fare (one-way)

$1.75

—

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

Utilities

Electricity (¢/kWh)

15.0

23.3

+55% in Newark, NJ

Natural Gas ($/MCF)

$29.48

$15.93

+46% in Louisville, KY

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 Louisville, KY

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 (KY / NJ)

6.625%

+0.6 pp in NJ

Income Tax (top rate)

3.50%

10.75%

+7.3 pp in NJ

Louisville vs Newark — FAQ

Is it cheaper to live in Louisville or Newark?: Louisville, KY is cheaper. Its monthly baseline of $1,060 (1BR rent + utilities) runs about 12% below Newark, NJ's $1,210, mainly because of rent.
How much more do you need to earn to live in Louisville than in Newark?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $35,000 a year in Louisville versus $39,000 in Newark.
Which has lower taxes, Louisville or Newark?: Louisville is taxed under Kentucky's rules (a top state income tax rate of 3.50% and a 6% 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).