Is it cheaper to live in Memphis or Newark?

Memphis, TN is cheaper. Its monthly baseline of $1,110 (1BR rent + utilities) runs about 8% below Newark, NJ's $1,210, mainly because of electricity costs.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $38,000 a year in Memphis versus $39,000 in Newark.

Which has lower taxes, Memphis or Newark?

Memphis is taxed under Tennessee's rules (no state income tax and a 7% state sales tax); Newark under New Jersey's (a top state income tax rate of 10.75% and a 6.625% state sales tax).

Memphis vs Newark Cost of Living 2026

Memphis

Tennessee

$1,110/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 $1,110 in Memphis, TN versus $1,210 in Newark, NJ. Overall, Memphis, TN is roughly 8% cheaper to live in day-to-day than Newark, NJ, driven mainly by electricity costs.

Median household income is $51,211 in Memphis, TN and $48,416 in Newark, NJ — about 5% higher in Memphis, TN. Tennessee has no state income tax and a 7% state sales tax; New Jersey has a top state income tax rate of 10.75% and a 6.625% state sales tax.

Memphis, TN

Newark, NJ

Rent

Studio

$877

$1,111

+27% in Newark, NJ

1 Bedroom

$948

$978

+3% in Newark, NJ

2 Bedroom

$1,073

$1,386

+29% in Newark, NJ

3 Bedroom

$1,281

$1,695

+32% in Newark, NJ

Buying a Home

Median Home Value

$157,100

$337,800

+115% in Newark, NJ

Income

Median Household Income

$51,211

$48,416

+5% in Memphis, TN

Metro Median Wage (annual)

$46,890

$61,430

+31% in Newark, NJ

People & Lifestyle

Median Age

34.3 yr

34.8 yr

+0.5 yr in Newark, NJ

Homeownership

46.0%

24.1%

+21.9 pp in Memphis, TN

Bachelor's+ (25+)

28.2%

17.4%

+10.8 pp in Memphis, TN

Avg Commute

21.3 min

33.2 min

+11.9 min in Newark, NJ

Crime (per 100k/yr)

Violent Crime

2,507.6

582.5

+77% in Memphis, TN

Property Crime

6,966.3

1,961.8

+72% in Memphis, TN

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

Climate

Avg Annual Temperature

63.1°F

54.9°F

+8.2°F in Memphis, TN

Annual Precipitation

53.7 in

46.3 in

+7.4 in in Memphis, TN

Gas

Regular Gasoline

$3.94/gal

$3.86/gal

+2% in Memphis, TN

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

Public Transit

Base Fare (one-way)

$1.75

—

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

Utilities

Electricity (¢/kWh)

14.5

23.3

+61% in Newark, NJ

Natural Gas ($/MCF)

$16.83

$15.93

+5% in Memphis, TN

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 Memphis, TN

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 (TN / NJ)

6.625%

+0.4 pp in TN

Income Tax (top rate)

None

10.75%

+10.8 pp in NJ

Memphis vs Newark — FAQ

Is it cheaper to live in Memphis or Newark?: Memphis, TN is cheaper. Its monthly baseline of $1,110 (1BR rent + utilities) runs about 8% below Newark, NJ's $1,210, mainly because of electricity costs.
How much more do you need to earn to live in Memphis than in Newark?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $38,000 a year in Memphis versus $39,000 in Newark.
Which has lower taxes, Memphis or Newark?: Memphis is taxed under Tennessee's rules (no state income tax and a 7% 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).