New Jersey · Population 30,451 · Updated March 2026
How far your income goes in Princeton, New Jersey
State-level tax rates that affect your costs
Princeton, New Jersey has a significantly higher cost of living than most US cities, driven largely by premium housing costs. With a cost index of 237 (where 100 equals the national median), Princeton, New Jersey residents can expect to pay median rent of $2,448/month while earning a median household income of $184,113/year.
The median home value in Princeton, New Jersey, NJ is $1,040,400, with typical monthly owner costs around $3,004 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 Princeton, New Jersey.
Common questions about living costs in Princeton, New Jersey