Cost of Living: Houston, TX vs Paterson, NJ (2026)

Houston

Texas
88
VS

Paterson

New Jersey
106

Houston is 17% cheaper than Paterson.

$1,313/mo ↓ 10%
Median Rent
$1,457/mo ↑ 11%
$62,894/yr ↑ 17%
Median Income
$53,766/yr ↓ 15%
$253,400 ↓ 24%
Home Value
$335,400 ↑ 32%
$1,316/mo ↓ 15%
Owner Costs
$1,553/mo ↑ 18%
2,300,419
Population
157,660

Tax Comparison

0%
Income Tax
10.75%
6.25%
State Sales Tax
6.625%
1.6%
Property Tax
2.23%

Affordability

25.1%
rent-to-income
Affordability
32.5%
rent-to-income

Detailed Comparison

When comparing Houston, TX and Paterson, NJ, the overall cost of living indices are 88 and 106 respectively (national median = 100). Rent is $144/month cheaper in Houston, saving renters about $1,728/year.

Median household income is $9,128/year higher in Houston. Home values also differ significantly — the median in Houston is $253,400 compared to $335,400 in Paterson.

Texas has no state income tax, giving Houston residents a significant tax advantage over New Jersey's 10.75% rate.

Frequently Asked Questions

Houston vs Paterson — common questions

Is Houston or Paterson cheaper to live in?
Based on our cost index, Houston is cheaper to live in with an index of 88 compared to 106 (US average = 100).
What is the rent difference between Houston and Paterson?
Median rent in Houston is $1,313/month and in Paterson it's $1,457/month — a difference of $144/month.
Which city has higher income, Houston or Paterson?
Median household income is $62,894 in Houston and $53,766 in Paterson. Median household income is $9,128/year higher in Houston.
How do taxes compare between Texas and New Jersey?
Texas has 0% income tax, 6.25% sales tax, and 1.6% property tax. New Jersey has 10.75% income tax, 6.625% sales tax, and 2.23% property tax.
Should I move to Houston or Paterson?
It depends on your priorities. Houston has a cost index of 88 with median rent of $1,313/mo, while Paterson has a cost index of 106 with rent of $1,457/mo. Consider income potential, tax burden, and lifestyle preferences alongside raw cost data.
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