Cost of Living: Newark, NJ vs Tempe, AZ (2026)

Newark

New Jersey
100
VS

Tempe

Arizona
120

Newark is 17% cheaper than Tempe.

$1,330/mo ↓ 18%
Median Rent
$1,623/mo ↑ 22%
$48,416/yr ↓ 38%
Median Income
$77,643/yr ↑ 60%
$337,800 ↓ 20%
Home Value
$421,900 ↑ 25%
$1,419/mo ↓ 9%
Owner Costs
$1,554/mo ↑ 10%
307,188
Population
186,419

Tax Comparison

10.75%
Income Tax
2.5%
6.625%
State Sales Tax
5.6%
2.23%
Property Tax
0.62%

Affordability

33.0%
rent-to-income
Affordability
25.1%
rent-to-income

Detailed Comparison

When comparing Newark, NJ and Tempe, AZ, the overall cost of living indices are 100 and 120 respectively (national median = 100). Rent is $293/month cheaper in Newark, saving renters about $3,516/year.

Median household income is $29,227/year higher in Tempe. Home values also differ significantly — the median in Newark is $337,800 compared to $421,900 in Tempe.

Arizona has a lower income tax rate, making Tempe slightly more tax-friendly.

Frequently Asked Questions

Newark vs Tempe — common questions

Is Newark or Tempe cheaper to live in?
Based on our cost index, Newark is cheaper to live in with an index of 100 compared to 120 (US average = 100).
What is the rent difference between Newark and Tempe?
Median rent in Newark is $1,330/month and in Tempe it's $1,623/month — a difference of $293/month.
Which city has higher income, Newark or Tempe?
Median household income is $48,416 in Newark and $77,643 in Tempe. Median household income is $29,227/year higher in Tempe.
How do taxes compare between New Jersey and Arizona?
New Jersey has 10.75% income tax, 6.625% sales tax, and 2.23% property tax. Arizona has 2.5% income tax, 5.6% sales tax, and 0.62% property tax.
Should I move to Newark or Tempe?
It depends on your priorities. Newark has a cost index of 100 with median rent of $1,330/mo, while Tempe has a cost index of 120 with rent of $1,623/mo. Consider income potential, tax burden, and lifestyle preferences alongside raw cost data.
View Newark details → View Tempe details →

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