State comparison
New Jersey vs Texas: which state is better to live in?
Texas costs a median household about $7,500 a year less in state and local taxes than New Jersey, mostly because property tax on a median home runs $5,440 a year against $10,650 in New Jersey.
New Jersey
High tax burden · COL index 121
Wins 7 categories
Texas
Moderate tax burden · COL index 97
Wins 8 categories
Taxes: New Jersey vs Texas
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. Texas has no state income tax. Texas wins on income tax at 2026 rates.
Property tax is 2.13% of home value a year in New Jersey and 1.60% in Texas (Tax Foundation, 2023); on each state's median home that is $10,650 against $5,440, so Texas has the lower rate.
Combined state and local sales tax averages 6.60% in New Jersey and 8.19% in Texas; 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, $7,272 in Texas. Texas is cheaper on total state and local tax.
Housing and cost of living
New Jersey's cost of living index is 121 and Texas's is 97, where 100 is the national average; Texas is about 25% cheaper day to day.
The median home costs $500K in New Jersey and $340K in Texas (Zillow, 2024), a $160K gap in Texas's favor. A two-bedroom rents for about $2,200 a month in New Jersey and $1,600 in Texas.
Home insurance averages $1,400 a year in New Jersey and $3,200 in Texas, so New Jersey is cheaper to insure.
Safety
Violent crime runs 213 incidents per 100,000 residents in New Jersey and 447 in Texas (FBI Crime Data Explorer, 2023); New Jersey is the safer state by that measure, with a rate 110% lower. Property crime is 1,368 per 100,000 in New Jersey against 2,478 in Texas, again favoring New Jersey.
Health
Life expectancy is 79 years in New Jersey and 76.3 in Texas (County Health Rankings, 2024), a 2.7-year edge for New Jersey. The Commonwealth Fund's 2023 scorecard ranks New Jersey's health system 19th of 50 and Texas's 36th, so New Jersey scores better on care.
6.8% of New Jersey residents have no health insurance against 18.4% in Texas, which favors New Jersey. New Jersey expanded Medicaid and Texas did not.
Schools
Education Week's 2023 Quality Counts report ranks New Jersey's K-12 schools 2nd in the country and Texas's 36th, 34 places apart in New Jersey's favor. Texas 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 Texas went to Trump by 14 points.
New Jersey has may-issue carry permits and a Giffords gun-law grade of A; Texas has permitless carry and a grade of F, so New Jersey regulates guns more tightly and Texas is the friendlier state for gun owners.
Abortion is protected by state law in New Jersey and banned with narrow exceptions in Texas, and marijuana is legal for adults in New Jersey and medical only in Texas as of 2026. The minimum wage is $15.13 an hour in New Jersey and $7.25 in Texas.
Climate and risk
Natural disaster risk is moderate in New Jersey (hurricane, flood, nor-easter) and very high in Texas (hurricane, tornado, flood), so New Jersey is the lower-risk state. Annual average air quality index is 35 in New Jersey and 43 in Texas (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
Texas
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Score For My Profile →Questions people ask
Is New Jersey or Texas better to live in?
It depends on what you weigh most. Texas on taxes ($7,272 a year for a median household against $14,755); Texas on everyday costs (index 97 against 121); New Jersey on safety (213 violent crimes per 100,000 against 447); New Jersey on schools (ranked 2nd against 36th).
Which is cheaper, New Jersey or Texas?
Texas is cheaper day to day: cost of living index 97 against 121. The median home is $500K in New Jersey and $340K in Texas (2024). On state and local taxes Texas saves a median household about $7,500 a year.
Does New Jersey or Texas have lower taxes?
Texas. 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 $7,272 in Texas ($0 income tax, $5,440 property tax on the median home and $1,832 in sales tax), at 2026 rates.
Which is safer, New Jersey or Texas?
New Jersey, on the FBI's 2023 figures. Violent crime is 213 per 100,000 residents in New Jersey and 447 in Texas; property crime is 1,368 against 2,478.
Which has better schools, New Jersey or Texas?
New Jersey. Education Week's 2023 Quality Counts report ranks New Jersey 2nd of 50 for K-12 and Texas 36th. Texas also offers school-choice vouchers.
Is New Jersey or Texas better for retirees?
Texas is friendlier to retirees on paper. New Jersey does not tax Social Security, partly exempts pensions and has an inheritance tax; Texas 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 $5,440 in Texas.