Is it cheaper to live in Madison or Newark?

Newark, NJ is cheaper. Its monthly baseline of $1,210 (1BR rent + utilities) runs about 14% below Madison, WI's $1,410, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $49,000 a year in Madison versus $39,000 in Newark.

Which has lower taxes, Madison or Newark?

Madison is taxed under Wisconsin's rules (a top state income tax rate of 7.65% and a 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).

Madison vs Newark Cost of Living 2026

Madison

Wisconsin

$1,410/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 $1,410 in Madison, WI versus $1,210 in Newark, NJ. Overall, Newark, NJ is roughly 14% cheaper to live in day-to-day than Madison, WI, driven mainly by rent.

Median household income is $76,983 in Madison, WI and $48,416 in Newark, NJ — about 37% higher in Madison, WI. Wisconsin has a top state income tax rate of 7.65% and a 5% state sales tax; New Jersey has a top state income tax rate of 10.75% and a 6.625% state sales tax.

Madison, WI

Newark, NJ

Rent

Studio

$1,018

$1,111

+9% in Newark, NJ

1 Bedroom

$1,219

$978

+20% in Madison, WI

2 Bedroom

$1,432

$1,386

+3% in Madison, WI

3 Bedroom

$1,766

$1,695

+4% in Madison, WI

Buying a Home

Median Home Value

$346,900

$337,800

+3% in Madison, WI

Income

Median Household Income

$76,983

$48,416

+37% in Madison, WI

Metro Median Wage (annual)

$58,080

$61,430

+6% in Newark, NJ

People & Lifestyle

Median Age

31.8 yr

34.8 yr

+3.0 yr in Newark, NJ

Homeownership

46.6%

24.1%

+22.5 pp in Madison, WI

Bachelor's+ (25+)

59.2%

17.4%

+41.8 pp in Madison, WI

Avg Commute

19.4 min

33.2 min

+13.8 min in Newark, NJ

Crime (per 100k/yr)

Violent Crime

259.5

582.5

+124% in Newark, NJ

Property Crime

1,884.5

1,961.8

+4% 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

46.5°F

54.9°F

+8.4°F in Newark, NJ

Annual Precipitation

34.5 in

46.3 in

+11.8 in in Newark, NJ

Gas

Regular Gasoline

$3.94/gal

$3.86/gal

+2% in Madison, WI

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

Utilities

Electricity (¢/kWh)

19.7

23.3

+18% in Newark, NJ

Natural Gas ($/MCF)

$11.79

$15.93

+35% in Newark, NJ

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

Groceries

Milk (gal)

$4.31

about equal

Bread (lb)

$1.66

$1.92

+16% in Newark, NJ

Eggs (doz)

$3.63

$2.19

+40% in Madison, WI

Ground Beef (lb)

$6.77

$6.90

+2% in Newark, NJ

Chicken (lb)

$2.10

$2.19

+4% in Newark, NJ

Bananas (lb)

$0.62

$0.69

+12% in Newark, NJ

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

State Taxes

Sales Tax (WI / NJ)

6.625%

+1.6 pp in NJ

Income Tax (top rate)

7.65%

10.75%

+3.1 pp in NJ

Madison vs Newark — FAQ

Is it cheaper to live in Madison or Newark?: Newark, NJ is cheaper. Its monthly baseline of $1,210 (1BR rent + utilities) runs about 14% below Madison, WI's $1,410, mainly because of rent.
How much more do you need to earn to live in Madison than in Newark?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $49,000 a year in Madison versus $39,000 in Newark.
Which has lower taxes, Madison or Newark?: Madison is taxed under Wisconsin's rules (a top state income tax rate of 7.65% and a 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).