Madison, NJ

Very High · 209

New Jersey · Population 16,464 · Updated March 2026

$2,248
Median Rent / Month
$168,469
Median Income
$882,900
Median Home Value
$2,704
Owner Costs / Month

Affordability

How far your income goes in Madison

16.0%
Rent-to-Income Ratio
Affordable
Rent takes less than 25% of median income — considered affordable by HUD standards.

Tax Burden in New Jersey

State-level tax rates that affect your costs

10.75%
Income Tax (Top Rate)
6.625%
Sales Tax
2.23%
Property Tax Rate

Estimated Annual Costs

$26,976
Annual Rent
$18,110
State Income Tax
$19,689
Property Tax (est.)

Cost of Living Overview

Madison has a significantly higher cost of living than most US cities, driven largely by premium housing costs. With a cost index of 209 (where 100 equals the national median), Madison residents can expect to pay median rent of $2,248/month while earning a median household income of $168,469/year.

The median home value in Madison, NJ is $882,900, with typical monthly owner costs around $2,704 including mortgage, insurance, and taxes. The median rent-to-income ratio of 16.0% means housing is relatively affordable here — well below the 30% threshold that HUD considers cost-burdened.

New Jersey's top income tax rate of 10.75% is among the highest in the nation, adding to the overall cost burden. Combined with a 6.625% sales tax rate and 2.23% effective property tax rate, the overall tax environment is a factor in the total cost of living in Madison.

Frequently Asked Questions

Common questions about living costs in Madison

What is the cost of living in Madison, NJ?
The cost of living index in Madison, NJ is 209 (US average = 100). Median monthly rent is $2,248, median household income is $168,469/year, and the median home value is $882,900.
Is Madison, NJ affordable?
No, Madison is more expensive than the national average with a cost index of 209. The rent-to-income ratio is 16.0%—below the 30%% threshold considered affordable by HUD.
What is the average rent in Madison, NJ?
The median gross rent in Madison, NJ is $2,248 per month according to the US Census Bureau ACS 2023 data. Annual rent costs approximately $26,976.
What is the median household income in Madison?
The median household income in Madison, NJ is $168,469 per year. This compares to the national median of approximately $80,000.
What are the taxes like in New Jersey?
New Jersey has a top income tax rate of 10.75%, a sales tax of 6.625%, and an effective property tax rate of 2.23%.