New Jersey · Population 157,660 · Updated March 2026
How far your income goes in Paterson
State-level tax rates that affect your costs
Paterson is more expensive than the national average. Higher housing costs are typically the primary driver. With a cost index of 106 (where 100 equals the national median), Paterson residents can expect to pay median rent of $1,457/month while earning a median household income of $53,766/year.
The median home value in Paterson, NJ is $335,400, with typical monthly owner costs around $1,553 including mortgage, insurance, and taxes. At 32.5% rent-to-income ratio, residents of Paterson are spending more than the recommended 30% of income on housing, indicating moderate cost burden.
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 Paterson.
Common questions about living costs in Paterson
Similar-sized cities to compare
Compare the cost of living in Paterson, NJ with 299 other major U.S. cities