State comparison
Arizona vs New Jersey: which state is better to live in?
Arizona costs a median household about $8,900 a year less in state and local taxes than New Jersey, mostly because property tax on a median home runs $2,142 a year against $10,650 in New Jersey.
Arizona
Moderate tax burden · COL index 102
Wins 7 categories
New Jersey
High tax burden · COL index 121
Wins 7 categories
Taxes: Arizona vs New Jersey
Arizona has a flat 2.5% income tax, which works out to 2.5% on a median income of $74,580, or $1,865 a year. New Jersey has a graduated income tax topping out at 10.75%, which works out to 3.5% on a median income of $74,580, or $2,628 a year. Arizona wins on income tax at 2026 rates.
Property tax is 0.51% of home value a year in Arizona and 2.13% in New Jersey (Tax Foundation, 2023); on each state's median home that is $2,142 against $10,650, so Arizona has the lower rate.
Combined state and local sales tax averages 8.37% in Arizona and 6.60% in New Jersey; New Jersey is lower.
Add it up for a household earning $74,580 (the 2022 national median) and owning the median home: $5,879 a year in Arizona, $14,755 in New Jersey. Arizona is cheaper on total state and local tax.
Housing and cost of living
Arizona's cost of living index is 102 and New Jersey's is 121, where 100 is the national average; Arizona is about 19% cheaper day to day.
The median home costs $420K in Arizona and $500K in New Jersey (Zillow, 2024), a $80K gap in Arizona's favor. A two-bedroom rents for about $1,600 a month in Arizona and $2,200 in New Jersey.
Home insurance averages $1,850 a year in Arizona and $1,400 in New Jersey, so New Jersey is cheaper to insure.
Safety
Violent crime runs 474 incidents per 100,000 residents in Arizona and 213 in New Jersey (FBI Crime Data Explorer, 2023); New Jersey is the safer state by that measure, with a rate 123% lower. Property crime is 2,624 per 100,000 in Arizona against 1,368 in New Jersey, again favoring New Jersey.
Health
Life expectancy is 76.3 years in Arizona and 79 in New Jersey (County Health Rankings, 2024), a 2.7-year edge for New Jersey. The Commonwealth Fund's 2023 scorecard ranks Arizona's health system 34th of 50 and New Jersey's 19th, so New Jersey scores better on care.
10.8% of Arizona residents have no health insurance against 6.8% in New Jersey, which favors New Jersey. Both states expanded Medicaid.
Schools
Education Week's 2023 Quality Counts report ranks Arizona's K-12 schools 45th in the country and New Jersey's 2nd, 43 places apart in New Jersey's favor. Arizona runs a school-choice voucher program; New Jersey does not.
Laws and politics
In the 2024 presidential election Arizona went to Trump by 5 points and New Jersey went to Harris by 6 points.
Arizona has permitless carry and a Giffords gun-law grade of F; New Jersey has may-issue carry permits and a grade of A, so New Jersey regulates guns more tightly and Arizona is the friendlier state for gun owners.
Abortion is banned with narrow exceptions in Arizona and protected by state law in New Jersey, and marijuana is legal for adults in both as of 2026. The minimum wage is $14.35 an hour in Arizona and $15.13 in New Jersey.
Climate and risk
Natural disaster risk is moderate in Arizona (wildfire, extreme-heat, drought) and moderate in New Jersey (hurricane, flood, nor-easter). Annual average air quality index is 46 in Arizona and 35 in New Jersey (under 50 is good), favoring New Jersey.
Tax figures use a household earning the national median income and owning each state's median home, at tax year 2026 rates, last checked against state sources on 2026-09-14. The table below has every number.
Taxes
Housing & Cost of Living
Crime & Safety
Healthcare
Education
Childcare
Utilities & Daily Costs
Social Policy
Category wins
7
Arizona
7
New Jersey
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Score For My Profile →Questions people ask
Is Arizona or New Jersey better to live in?
It depends on what you weigh most. Arizona on taxes ($5,879 a year for a median household against $14,755); Arizona on everyday costs (index 102 against 121); New Jersey on safety (213 violent crimes per 100,000 against 474); New Jersey on schools (ranked 2nd against 45th).
Which is cheaper, Arizona or New Jersey?
Arizona is cheaper day to day: cost of living index 102 against 121. The median home is $420K in Arizona and $500K in New Jersey (2024). On state and local taxes Arizona saves a median household about $8,900 a year.
Does Arizona or New Jersey have lower taxes?
Arizona. A household earning $74,580 pays about $5,879 a year in Arizona ($1,865 income tax, $2,142 property tax on the median home and $1,873 in sales tax) and $14,755 in New Jersey ($2,628 income tax, $10,650 property tax on the median home and $1,477 in sales tax), at 2026 rates.
Which is safer, Arizona or New Jersey?
New Jersey, on the FBI's 2023 figures. Violent crime is 474 per 100,000 residents in Arizona and 213 in New Jersey; property crime is 2,624 against 1,368.
Which has better schools, Arizona or New Jersey?
New Jersey. Education Week's 2023 Quality Counts report ranks Arizona 45th of 50 for K-12 and New Jersey 2nd. Arizona also offers school-choice vouchers.
Is Arizona or New Jersey better for retirees?
Arizona is friendlier to retirees on paper. Arizona does not tax Social Security, partly exempts pensions and has no estate or inheritance tax; New Jersey does not tax Social Security, partly exempts pensions and has an inheritance tax. Property tax on a median home is $2,142 a year in Arizona and $10,650 in New Jersey.