Is it cheaper to live in Madison or Paterson?

Madison, WI is cheaper. Its monthly baseline of $1,420 (1BR rent + utilities) runs about 1% below Paterson, NJ's $1,430, mainly because of electricity costs.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $49,000 a year in Madison versus $47,000 in Paterson.

Which has lower taxes, Madison or Paterson?

Madison is taxed under Wisconsin's rules (a top state income tax rate of 7.65% and a 5% state sales tax); Paterson under New Jersey's (a top state income tax rate of 10.75% and a 6.625% state sales tax).

Madison vs Paterson Cost of Living 2026

Madison

Wisconsin

$1,420/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 $1,420 in Madison, WI versus $1,430 in Paterson, NJ. Overall, Madison, WI is roughly 1% cheaper to live in day-to-day than Paterson, NJ, driven mainly by electricity costs.

Median household income is $76,983 in Madison, WI and $53,766 in Paterson, NJ — about 30% 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

Paterson, NJ

Rent

Studio

$1,018

$786

+23% in Madison, WI

1 Bedroom

$1,219

$1,183

+3% in Madison, WI

2 Bedroom

$1,432

$1,468

+3% in Paterson, NJ

3 Bedroom

$1,766

$1,729

+2% in Madison, WI

Buying a Home

Median Home Value

$346,900

$335,400

+3% in Madison, WI

Income

Median Household Income

$76,983

$53,766

+30% in Madison, WI

Metro Median Wage (annual)

$58,080

$61,430

+6% in Paterson, NJ

People & Lifestyle

Median Age

31.8 yr

33.3 yr

+1.5 yr in Paterson, NJ

Homeownership

46.6%

26.2%

+20.4 pp in Madison, WI

Bachelor's+ (25+)

59.2%

12.5%

+46.7 pp in Madison, WI

Avg Commute

19.4 min

23.1 min

+3.7 min in Paterson, NJ

Crime (per 100k/yr)

Violent Crime

259.5

1,010.1

+289% in Paterson, NJ

Property Crime

1,884.5

2,391.4

+27% 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

46.5°F

52.2°F

+5.7°F in Paterson, NJ

Annual Precipitation

34.5 in

49.0 in

+14.6 in in Paterson, NJ

Gas

Regular Gasoline

$3.85/gal

$3.94/gal

+2% in Paterson, NJ

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

Utilities

Electricity (¢/kWh)

19.6

24.9

+28% in Paterson, NJ

Natural Gas ($/MCF)

$18.17

$17.68

+3% in Madison, WI

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 Paterson, NJ

Eggs (doz)

$3.63

$2.19

+40% in Madison, WI

Ground Beef (lb)

$6.77

$6.90

+2% in Paterson, NJ

Chicken (lb)

$2.10

$2.19

+4% in Paterson, NJ

Bananas (lb)

$0.62

$0.69

+12% in Paterson, 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 Paterson — FAQ

Is it cheaper to live in Madison or Paterson?: Madison, WI is cheaper. Its monthly baseline of $1,420 (1BR rent + utilities) runs about 1% below Paterson, NJ's $1,430, mainly because of electricity costs.
How much more do you need to earn to live in Madison than in Paterson?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $49,000 a year in Madison versus $47,000 in Paterson.
Which has lower taxes, Madison or Paterson?: Madison is taxed under Wisconsin's rules (a top state income tax rate of 7.65% and a 5% 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).