Cost of Living in Newark, NJ

How far does a $70,000 salary go in Newark? Estimated income taxes on that gross salary total approximately $9,616 per year — combining federal taxes with New Jersey's state income tax. Subtract rent for a 2-bedroom apartment ($2,205/month based on HUD Fair Market Rents for the Newark metro area) and the estimated annual take-home is $33,924, or roughly $2,827 per month for everything else: food, transportation, savings, and discretionary spending.

The Newark metro has a cost of living index of 149.7 according to the Bureau of Economic Analysis Regional Price Parities (national average = 100). At 50% above average, Newark is a noticeably expensive metro — groceries, services, and everyday purchases cost more than in most of the country.

At a $70,000 salary, the estimated 2-bedroom rent in Newark represents approximately 38% of gross income. That is well above what most financial advisors recommend, indicating that Newark is a financial stretch at a $70,000 salary without roommates or a higher-earning household.