Cost of Living: Newark, NJ vs Birmingham, AL (2026)

Newark

New Jersey
100
VS

Birmingham

Alabama
62

Newark is 61% more expensive than Birmingham.

$1,330/mo ↑ 27%
Median Rent
$1,047/mo ↓ 21%
$48,416/yr ↑ 9%
Median Income
$44,376/yr ↓ 8%
$337,800 ↑ 144%
Home Value
$138,600 ↓ 59%
$1,419/mo ↑ 43%
Owner Costs
$991/mo ↓ 30%
307,188
Population
199,322

Tax Comparison

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

Affordability

33.0%
rent-to-income
Affordability
28.3%
rent-to-income

Detailed Comparison

When comparing Newark, NJ and Birmingham, AL, the overall cost of living indices are 100 and 62 respectively (national median = 100). Rent is $283/month cheaper in Birmingham, saving renters about $3,396/year.

Median household income is $4,040/year higher in Newark. Home values also differ significantly — the median in Newark is $337,800 compared to $138,600 in Birmingham.

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

Frequently Asked Questions

Newark vs Birmingham — common questions

Is Newark or Birmingham cheaper to live in?
Based on our cost index, Birmingham is cheaper to live in with an index of 62 compared to 100 (US average = 100).
What is the rent difference between Newark and Birmingham?
Median rent in Newark is $1,330/month and in Birmingham it's $1,047/month — a difference of $283/month.
Which city has higher income, Newark or Birmingham?
Median household income is $48,416 in Newark and $44,376 in Birmingham. Median household income is $4,040/year higher in Newark.
How do taxes compare between New Jersey and Alabama?
New Jersey has 10.75% income tax, 6.625% sales tax, and 2.23% property tax. Alabama has 5.0% income tax, 4.0% sales tax, and 0.41% property tax.
Should I move to Newark or Birmingham?
It depends on your priorities. Newark has a cost index of 100 with median rent of $1,330/mo, while Birmingham has a cost index of 62 with rent of $1,047/mo. Consider income potential, tax burden, and lifestyle preferences alongside raw cost data.
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More Comparisons

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