State comparison
Michigan vs New Jersey: which state is better to live in?
Michigan costs a median household about $6,900 a year less in state and local taxes than New Jersey, mostly because property tax on a median home runs $3,300 a year against $10,650 in New Jersey.
Michigan
Moderate tax burden · COL index 88
Wins 10 categories
New Jersey
High tax burden · COL index 121
Wins 5 categories
Taxes: Michigan vs New Jersey
Michigan has a flat 4.25% income tax, which works out to 4.3% on a median income of $74,580, or $3,170 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. New Jersey wins on income tax at 2026 rates.
Property tax is 1.32% of home value a year in Michigan and 2.13% in New Jersey (Tax Foundation, 2023); on each state's median home that is $3,300 against $10,650, so Michigan has the lower rate.
Combined state and local sales tax averages 6.00% in Michigan and 6.60% in New Jersey; Michigan is lower.
Add it up for a household earning $74,580 (the 2022 national median) and owning the median home: $7,812 a year in Michigan, $14,755 in New Jersey. Michigan is cheaper on total state and local tax.
Housing and cost of living
Michigan's cost of living index is 88 and New Jersey's is 121, where 100 is the national average; Michigan is about 38% cheaper day to day.
The median home costs $250K in Michigan and $500K in New Jersey (Zillow, 2024), a $250K gap in Michigan's favor. A two-bedroom rents for about $1,150 a month in Michigan and $2,200 in New Jersey.
Home insurance averages $1,100 a year in Michigan and $1,400 in New Jersey, so Michigan is cheaper to insure.
Safety
Violent crime runs 445 incidents per 100,000 residents in Michigan and 213 in New Jersey (FBI Crime Data Explorer, 2023); New Jersey is the safer state by that measure, with a rate 109% lower. Property crime is 1,670 per 100,000 in Michigan against 1,368 in New Jersey, again favoring New Jersey.
Health
Life expectancy is 75.7 years in Michigan and 79 in New Jersey (County Health Rankings, 2024), a 3.3-year edge for New Jersey. The Commonwealth Fund's 2023 scorecard ranks Michigan's health system 25th of 50 and New Jersey's 19th, so New Jersey scores better on care.
5.9% of Michigan residents have no health insurance against 6.8% in New Jersey, which favors Michigan. Both states expanded Medicaid.
Schools
Education Week's 2023 Quality Counts report ranks Michigan's K-12 schools 38th in the country and New Jersey's 2nd, 36 places apart in New Jersey's favor. Neither state runs a school-choice voucher program.
Laws and politics
In the 2024 presidential election Michigan was a swing state decided by 2 points and New Jersey went to Harris by 6 points.
Michigan has shall-issue carry permits and a Giffords gun-law grade of C+; New Jersey has may-issue carry permits and a grade of A, so New Jersey regulates guns more tightly and Michigan is the friendlier state for gun owners.
Abortion is protected by state law in both states, and marijuana is legal for adults in both as of 2026. The minimum wage is $10.33 an hour in Michigan and $15.13 in New Jersey.
Climate and risk
Natural disaster risk is moderate in Michigan (blizzard, flood, tornado) and moderate in New Jersey (hurricane, flood, nor-easter). Annual average air quality index is 42 in Michigan 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
10
Michigan
5
New Jersey
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Score For My Profile →Questions people ask
Is Michigan or New Jersey better to live in?
It depends on what you weigh most. Michigan on taxes ($7,812 a year for a median household against $14,755); Michigan on everyday costs (index 88 against 121); New Jersey on safety (213 violent crimes per 100,000 against 445); New Jersey on schools (ranked 2nd against 38th).
Which is cheaper, Michigan or New Jersey?
Michigan is cheaper day to day: cost of living index 88 against 121. The median home is $250K in Michigan and $500K in New Jersey (2024). On state and local taxes Michigan saves a median household about $6,900 a year.
Does Michigan or New Jersey have lower taxes?
Michigan. A household earning $74,580 pays about $7,812 a year in Michigan ($3,170 income tax, $3,300 property tax on the median home and $1,342 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, Michigan or New Jersey?
New Jersey, on the FBI's 2023 figures. Violent crime is 445 per 100,000 residents in Michigan and 213 in New Jersey; property crime is 1,670 against 1,368.
Which has better schools, Michigan or New Jersey?
New Jersey. Education Week's 2023 Quality Counts report ranks Michigan 38th of 50 for K-12 and New Jersey 2nd.
Is Michigan or New Jersey better for retirees?
New Jersey is friendlier to retirees on paper. Michigan taxes 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 $3,300 a year in Michigan and $10,650 in New Jersey.