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

Newark

New Jersey
100
VS

Montgomery

Alabama
64

Newark is 56% more expensive than Montgomery.

$1,330/mo ↑ 26%
Median Rent
$1,059/mo ↓ 20%
$48,416/yr ↓ 13%
Median Income
$55,687/yr ↑ 15%
$337,800 ↑ 127%
Home Value
$148,500 ↓ 56%
$1,419/mo ↑ 39%
Owner Costs
$1,023/mo ↓ 28%
307,188
Population
198,440

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
22.8%
rent-to-income

Detailed Comparison

When comparing Newark, NJ and Montgomery, AL, the overall cost of living indices are 100 and 64 respectively (national median = 100). Rent is $271/month cheaper in Montgomery, saving renters about $3,252/year.

Median household income is $7,271/year higher in Montgomery. Home values also differ significantly — the median in Newark is $337,800 compared to $148,500 in Montgomery.

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

Frequently Asked Questions

Newark vs Montgomery — common questions

Is Newark or Montgomery cheaper to live in?
Based on our cost index, Montgomery is cheaper to live in with an index of 64 compared to 100 (US average = 100).
What is the rent difference between Newark and Montgomery?
Median rent in Newark is $1,330/month and in Montgomery it's $1,059/month — a difference of $271/month.
Which city has higher income, Newark or Montgomery?
Median household income is $48,416 in Newark and $55,687 in Montgomery. Median household income is $7,271/year higher in Montgomery.
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 Montgomery?
It depends on your priorities. Newark has a cost index of 100 with median rent of $1,330/mo, while Montgomery has a cost index of 64 with rent of $1,059/mo. Consider income potential, tax burden, and lifestyle preferences alongside raw cost data.
View Newark details → View Montgomery details →

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