Is it cheaper to live in Newark or Sioux Falls?

Sioux Falls, SD is cheaper. Its monthly baseline of $1,030 (1BR rent + utilities) runs about 15% below Newark, NJ's $1,210, mainly because of rent.

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

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

Which has lower taxes, Newark or Sioux Falls?

Newark is taxed under New Jersey's rules (a top state income tax rate of 10.75% and a 6.625% state sales tax); Sioux Falls under South Dakota's (no state income tax and a 4.2% state sales tax).

Newark vs Sioux Falls Cost of Living 2026

Newark

New Jersey

$1,210/mo est.

Sioux Falls

South Dakota

$1,030/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 $1,030 in Sioux Falls, SD. Overall, Sioux Falls, SD is roughly 15% cheaper to live in day-to-day than Newark, NJ, driven mainly by rent.

Median household income is $48,416 in Newark, NJ and $74,714 in Sioux Falls, SD — about 35% higher in Sioux Falls, SD. New Jersey has a top state income tax rate of 10.75% and a 6.625% state sales tax; South Dakota has no state income tax and a 4.2% state sales tax.

Newark, NJ

Sioux Falls, SD

Rent

Studio

$1,111

$825

+26% in Newark, NJ

1 Bedroom

$978

$870

+11% in Newark, NJ

2 Bedroom

$1,386

$1,000

+28% in Newark, NJ

3 Bedroom

$1,695

$1,237

+27% in Newark, NJ

Buying a Home

Median Home Value

$337,800

$271,400

+20% in Newark, NJ

Income

Median Household Income

$48,416

$74,714

+54% in Sioux Falls, SD

Metro Median Wage (annual)

$61,430

$47,970

+22% in Newark, NJ

People & Lifestyle

Median Age

34.8 yr

35.1 yr

+0.3 yr in Sioux Falls, SD

Homeownership

24.1%

60.0%

+35.9 pp in Sioux Falls, SD

Bachelor's+ (25+)

17.4%

37.4%

+20.0 pp in Sioux Falls, SD

Avg Commute

33.2 min

17.0 min

+16.2 min in Newark, NJ

Crime (per 100k/yr)

Violent Crime

582.5

526.7

+10% in Newark, NJ

Property Crime

1,961.8

2,927.1

+49% in Sioux Falls, SD

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

45.8°F

+9.1°F in Newark, NJ

Annual Precipitation

46.3 in

26.4 in

+19.9 in in Newark, NJ

Gas

Regular Gasoline

$3.86/gal

$3.94/gal

+2% in Sioux Falls, SD

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

Utilities

Electricity (¢/kWh)

23.3

15.7

+32% in Newark, NJ

Natural Gas ($/MCF)

$15.93

$10.95

+31% in Newark, NJ

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

Groceries

Milk (gal)

$4.31

about equal

Bread (lb)

$1.92

$1.66

+14% in Newark, NJ

Eggs (doz)

$2.19

$3.63

+66% in Sioux Falls, SD

Ground Beef (lb)

$6.90

$6.77

+2% in Newark, NJ

Chicken (lb)

$2.19

$2.10

+4% in Newark, NJ

Bananas (lb)

$0.69

$0.62

+11% in Newark, NJ

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

State Taxes

Sales Tax (NJ / SD)

6.625%

4.2%

+2.4 pp in NJ

Income Tax (top rate)

10.75%

None

+10.8 pp in NJ

Newark vs Sioux Falls — FAQ

Is it cheaper to live in Newark or Sioux Falls?: Sioux Falls, SD is cheaper. Its monthly baseline of $1,030 (1BR rent + utilities) runs about 15% below Newark, NJ's $1,210, mainly because of rent.
How much more do you need to earn to live in Newark than in Sioux Falls?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $39,000 a year in Newark versus $35,000 in Sioux Falls.
Which has lower taxes, Newark or Sioux Falls?: Newark is taxed under New Jersey's rules (a top state income tax rate of 10.75% and a 6.625% state sales tax); Sioux Falls under South Dakota's (no state income tax and a 4.2% 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).