Cost of Living: Memphis, TN vs Paterson, NJ (2026)

Memphis

Tennessee
68
VS

Paterson

New Jersey
106

Memphis is 36% cheaper than Paterson.

$1,123/mo ↓ 23%
Median Rent
$1,457/mo ↑ 30%
$51,211/yr ↓ 5%
Median Income
$53,766/yr ↑ 5%
$157,100 ↓ 53%
Home Value
$335,400 ↑ 113%
$1,087/mo ↓ 30%
Owner Costs
$1,553/mo ↑ 43%
629,063
Population
157,660

Tax Comparison

0%
Income Tax
10.75%
7.0%
State Sales Tax
6.625%
0.64%
Property Tax
2.23%

Affordability

26.3%
rent-to-income
Affordability
32.5%
rent-to-income

Detailed Comparison

When comparing Memphis, TN and Paterson, NJ, the overall cost of living indices are 68 and 106 respectively (national median = 100). Rent is $334/month cheaper in Memphis, saving renters about $4,008/year.

Median household income is $2,555/year higher in Paterson. Home values also differ significantly — the median in Memphis is $157,100 compared to $335,400 in Paterson.

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

Frequently Asked Questions

Memphis vs Paterson — common questions

Is Memphis or Paterson cheaper to live in?
Based on our cost index, Memphis is cheaper to live in with an index of 68 compared to 106 (US average = 100).
What is the rent difference between Memphis and Paterson?
Median rent in Memphis is $1,123/month and in Paterson it's $1,457/month — a difference of $334/month.
Which city has higher income, Memphis or Paterson?
Median household income is $51,211 in Memphis and $53,766 in Paterson. Median household income is $2,555/year higher in Paterson.
How do taxes compare between Tennessee and New Jersey?
Tennessee has 0% income tax, 7.0% sales tax, and 0.64% property tax. New Jersey has 10.75% income tax, 6.625% sales tax, and 2.23% property tax.
Should I move to Memphis or Paterson?
It depends on your priorities. Memphis has a cost index of 68 with median rent of $1,123/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.
View Memphis details → View Paterson details →

More Comparisons

Other cost of living comparisons for Memphis and Paterson

Memphis vs. Detroit Memphis vs. Louisville Memphis vs. Portland Memphis vs. Baltimore Memphis vs. Las Vegas Memphis vs. Milwaukee Paterson vs. Corona Paterson vs. Murfreesboro Paterson vs. Hayward Paterson vs. Alexandria Paterson vs. Salinas Paterson vs. Macon