Is it cheaper to live in Newark or Phoenix?

Newark, NJ is cheaper. Its monthly baseline of $1,210 (1BR rent + utilities) runs about 15% below Phoenix, AZ's $1,430, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $39,000 a year in Newark versus $50,000 in Phoenix.

Which has lower taxes, Newark or Phoenix?

Newark is taxed under New Jersey's rules (a top state income tax rate of 10.75% and a 6.625% state sales tax); Phoenix under Arizona's (a top state income tax rate of 2.50% and a 5.6% state sales tax).

Newark vs Phoenix Cost of Living 2026

Newark

New Jersey

$1,210/mo est.

Phoenix

Arizona

$1,430/mo est.

Monthly estimate = 1BR rent + electricity + gas

A one-person monthly baseline (1BR rent plus typical utilities) runs $1,210 in Newark, NJ versus $1,430 in Phoenix, AZ. Overall, Newark, NJ is roughly 15% cheaper to live in day-to-day than Phoenix, AZ, driven mainly by rent.

Median household income is $48,416 in Newark, NJ and $77,041 in Phoenix, AZ — about 37% higher in Phoenix, AZ. New Jersey has a top state income tax rate of 10.75% and a 6.625% state sales tax; Arizona has a top state income tax rate of 2.50% and a 5.6% state sales tax.

Newark, NJ

Phoenix, AZ

Rent

Studio

$1,111

$1,127

+1% in Phoenix, AZ

1 Bedroom

$978

$1,253

+28% in Phoenix, AZ

2 Bedroom

$1,386

$1,493

+8% in Phoenix, AZ

3 Bedroom

$1,695

$1,771

+4% in Phoenix, AZ

Buying a Home

Median Home Value

$337,800

$381,900

+13% in Phoenix, AZ

Income

Median Household Income

$48,416

$77,041

+59% in Phoenix, AZ

Metro Median Wage (annual)

$61,430

$51,380

+16% in Newark, NJ

People & Lifestyle

Median Age

34.8 yr

about equal

Homeownership

24.1%

57.1%

+33.0 pp in Phoenix, AZ

Bachelor's+ (25+)

17.4%

32.3%

+14.9 pp in Phoenix, AZ

Avg Commute

33.2 min

25.7 min

+7.5 min in Newark, NJ

Crime (per 100k/yr)

Violent Crime

582.5

799.6

+37% in Phoenix, AZ

Property Crime

1,961.8

2,338.9

+19% in Phoenix, AZ

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

Climate

Avg Annual Temperature

54.9°F

75.1°F

+20.2°F in Phoenix, AZ

Annual Precipitation

46.3 in

8.2 in

+38.1 in in Newark, NJ

Gas

Regular Gasoline

$3.86/gal

$5.09/gal

+32% in Phoenix, AZ

Area: East Coast (PADD 1) vs West Coast (PADD 5).

Public Transit

Base Fare (one-way)

—

$2.00

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

Utilities

Electricity (¢/kWh)

23.3

15.2

+35% in Newark, NJ

Natural Gas ($/MCF)

$15.93

$22.44

+41% in Phoenix, AZ

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

Groceries

Milk (gal)

$4.31

$4.82

+12% in Phoenix, AZ

Bread (lb)

$1.92

$2.04

+6% in Phoenix, AZ

Eggs (doz)

$2.19

about equal

Ground Beef (lb)

$6.90

$7.36

+7% in Phoenix, AZ

Chicken (lb)

$2.19

$2.01

+8% in Newark, NJ

Bananas (lb)

$0.69

$0.70

about equal

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

State Taxes

Sales Tax (NJ / AZ)

6.625%

5.6%

+1.0 pp in NJ

Income Tax (top rate)

10.75%

2.50%

+8.3 pp in NJ

Newark vs Phoenix — FAQ

Is it cheaper to live in Newark or Phoenix?: Newark, NJ is cheaper. Its monthly baseline of $1,210 (1BR rent + utilities) runs about 15% below Phoenix, AZ's $1,430, mainly because of rent.
How much more do you need to earn to live in Newark than in Phoenix?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $39,000 a year in Newark versus $50,000 in Phoenix.
Which has lower taxes, Newark or Phoenix?: Newark is taxed under New Jersey's rules (a top state income tax rate of 10.75% and a 6.625% state sales tax); Phoenix under Arizona's (a top state income tax rate of 2.50% and a 5.6% 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).