State comparison
New Jersey vs Tennessee: which state is better to live in?
Tennessee costs a median household about $11,000 a year less in state and local taxes than New Jersey, mostly because property tax on a median home runs $1,575 a year against $10,650 in New Jersey.
New Jersey
High tax burden · COL index 121
Wins 7 categories
Tennessee
Low tax burden · COL index 92
Wins 8 categories
Taxes: New Jersey vs Tennessee
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. Tennessee has no state income tax. Tennessee wins on income tax at 2026 rates.
Property tax is 2.13% of home value a year in New Jersey and 0.45% in Tennessee (Tax Foundation, 2023); on each state's median home that is $10,650 against $1,575, so Tennessee has the lower rate.
Combined state and local sales tax averages 6.60% in New Jersey and 9.55% in Tennessee; New Jersey is lower.
Add it up for a household earning $74,580 (the 2022 national median) and owning the median home: $14,755 a year in New Jersey, $3,712 in Tennessee. Tennessee is cheaper on total state and local tax.
Housing and cost of living
New Jersey's cost of living index is 121 and Tennessee's is 92, where 100 is the national average; Tennessee is about 32% cheaper day to day.
The median home costs $500K in New Jersey and $350K in Tennessee (Zillow, 2024), a $150K gap in Tennessee's favor. A two-bedroom rents for about $2,200 a month in New Jersey and $1,400 in Tennessee.
Home insurance averages $1,400 a year in New Jersey and $2,000 in Tennessee, so New Jersey is cheaper to insure.
Safety
Violent crime runs 213 incidents per 100,000 residents in New Jersey and 668 in Tennessee (FBI Crime Data Explorer, 2023); New Jersey is the safer state by that measure, with a rate 214% lower. Property crime is 1,368 per 100,000 in New Jersey against 2,752 in Tennessee, again favoring New Jersey.
Health
Life expectancy is 79 years in New Jersey and 74.2 in Tennessee (County Health Rankings, 2024), a 4.8-year edge for New Jersey. The Commonwealth Fund's 2023 scorecard ranks New Jersey's health system 19th of 50 and Tennessee's 39th, so New Jersey scores better on care.
6.8% of New Jersey residents have no health insurance against 10.4% in Tennessee, which favors New Jersey. New Jersey expanded Medicaid and Tennessee did not.
Schools
Education Week's 2023 Quality Counts report ranks New Jersey's K-12 schools 2nd in the country and Tennessee's 41st, 39 places apart in New Jersey's favor. Tennessee runs a school-choice voucher program; New Jersey does not.
Laws and politics
In the 2024 presidential election New Jersey went to Harris by 6 points and Tennessee went to Trump by 24 points.
New Jersey has may-issue carry permits and a Giffords gun-law grade of A; Tennessee has permitless carry and a grade of F, so New Jersey regulates guns more tightly and Tennessee is the friendlier state for gun owners.
Abortion is protected by state law in New Jersey and banned with narrow exceptions in Tennessee, and marijuana is legal for adults in New Jersey and illegal in Tennessee as of 2026. The minimum wage is $15.13 an hour in New Jersey and $7.25 in Tennessee.
Climate and risk
Natural disaster risk is moderate in New Jersey (hurricane, flood, nor-easter) and moderate in Tennessee (tornado, flood, ice-storm). Annual average air quality index is 35 in New Jersey and 36 in Tennessee (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
New Jersey
8
Tennessee
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Score For My Profile →Questions people ask
Is New Jersey or Tennessee better to live in?
It depends on what you weigh most. Tennessee on taxes ($3,712 a year for a median household against $14,755); Tennessee on everyday costs (index 92 against 121); New Jersey on safety (213 violent crimes per 100,000 against 668); New Jersey on schools (ranked 2nd against 41st).
Which is cheaper, New Jersey or Tennessee?
Tennessee is cheaper day to day: cost of living index 92 against 121. The median home is $500K in New Jersey and $350K in Tennessee (2024). On state and local taxes Tennessee saves a median household about $11,000 a year.
Does New Jersey or Tennessee have lower taxes?
Tennessee. A household earning $74,580 pays about $14,755 a year in New Jersey ($2,628 income tax, $10,650 property tax on the median home and $1,477 in sales tax) and $3,712 in Tennessee ($0 income tax, $1,575 property tax on the median home and $2,137 in sales tax), at 2026 rates.
Which is safer, New Jersey or Tennessee?
New Jersey, on the FBI's 2023 figures. Violent crime is 213 per 100,000 residents in New Jersey and 668 in Tennessee; property crime is 1,368 against 2,752.
Which has better schools, New Jersey or Tennessee?
New Jersey. Education Week's 2023 Quality Counts report ranks New Jersey 2nd of 50 for K-12 and Tennessee 41st. Tennessee also offers school-choice vouchers.
Is New Jersey or Tennessee better for retirees?
Tennessee is friendlier to retirees on paper. New Jersey does not tax Social Security, partly exempts pensions and has an inheritance tax; Tennessee does not tax Social Security, exempts pensions and has no estate or inheritance tax. Property tax on a median home is $10,650 a year in New Jersey and $1,575 in Tennessee.