Cost of Living: Montgomery, AL vs Paterson, NJ (2026)

Montgomery

Alabama
64
VS

Paterson

New Jersey
106

Montgomery is 40% cheaper than Paterson.

$1,059/mo ↓ 27%
Median Rent
$1,457/mo ↑ 38%
$55,687/yr ↑ 4%
Median Income
$53,766/yr ↓ 3%
$148,500 ↓ 56%
Home Value
$335,400 ↑ 126%
$1,023/mo ↓ 34%
Owner Costs
$1,553/mo ↑ 52%
198,440
Population
157,660

Tax Comparison

5.0%
Income Tax
10.75%
4.0%
State Sales Tax
6.625%
0.41%
Property Tax
2.23%

Affordability

22.8%
rent-to-income
Affordability
32.5%
rent-to-income

Detailed Comparison

When comparing Montgomery, AL and Paterson, NJ, the overall cost of living indices are 64 and 106 respectively (national median = 100). Rent is $398/month cheaper in Montgomery, saving renters about $4,776/year.

Median household income is $1,921/year higher in Montgomery. Home values also differ significantly — the median in Montgomery is $148,500 compared to $335,400 in Paterson.

Alabama has a lower income tax rate, making Montgomery slightly more tax-friendly.

Frequently Asked Questions

Montgomery vs Paterson — common questions

Is Montgomery or Paterson cheaper to live in?
Based on our cost index, Montgomery is cheaper to live in with an index of 64 compared to 106 (US average = 100).
What is the rent difference between Montgomery and Paterson?
Median rent in Montgomery is $1,059/month and in Paterson it's $1,457/month — a difference of $398/month.
Which city has higher income, Montgomery or Paterson?
Median household income is $55,687 in Montgomery and $53,766 in Paterson. Median household income is $1,921/year higher in Montgomery.
How do taxes compare between Alabama and New Jersey?
Alabama has 5.0% income tax, 4.0% sales tax, and 0.41% property tax. New Jersey has 10.75% income tax, 6.625% sales tax, and 2.23% property tax.
Should I move to Montgomery or Paterson?
It depends on your priorities. Montgomery has a cost index of 64 with median rent of $1,059/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 Montgomery details → View Paterson details →

More Comparisons

Other cost of living comparisons for Montgomery and Paterson

Montgomery vs. Grand Prairie Montgomery vs. Grand Rapids Montgomery vs. Sunrise Manor Montgomery vs. Sioux Falls Montgomery vs. Birmingham Montgomery vs. Overland Park Paterson vs. Corona Paterson vs. Murfreesboro Paterson vs. Hayward Paterson vs. Alexandria Paterson vs. Salinas Paterson vs. Macon