Median rent is 22% lower in Newark ($1,392/mo vs $1,779/mo). Buying is cheaper in Newark, where the median home runs $373,700 versus $506,300. Households earn more in Sacramento ($87,321 vs $52,060 a year). Taken together, Sacramento is the more affordable choice with a cost index of 109.1 against 112.6 — about 3% lower overall prices. After adjusting income for local prices, a typical paycheck stretches further in Sacramento, CA.
Cost of living verdict
Sacramento is 3% cheaper overall
Cost of Living Index: 109.1 in Sacramento vs 112.6 in Newark (US national average = 100)
City A
Newark, NJ
City B
Sacramento, CA
How much would you need to earn in Sacramento, CA to maintain your standard of living from Newark, NJ?
Equivalent salary in Sacramento, CA
$72,634
You could earn $2,366 less (3% lower) and break even.
Based on BEA Regional Price Parity (cost index) for each metro area. This estimates overall purchasing power; it does not account for taxes or take-home pay differences.
Metric
Newark
New Jersey
Sacramento
California
Population
Median Household Income
Annual
Median Gross Rent
Per month
Median Home Value
Cost of Living Index
US avg = 100
1BR Fair Market Rent
HUD FMR
2BR Fair Market Rent
HUD FMR
3BR Fair Market Rent
HUD FMR
Air Quality Index
Lower = cleaner
Top State Income Tax
Top marginal rate
State Sales Tax
Statewide base rate
Median Age
Years
✓ = better value · Sources: Census ACS, BEA, HUD Fair Market Rents, EPA AirNow, Tax Foundation
Renters will find significantly cheaper housing in Newark — median rent of $1,392/mo versus $1,779/mo in Sacramento, a 22% difference. Home buyers face a steeper market in Sacramento: the median home is $506,300 versus $373,700 in Newark — 26% more expensive.
1BR Fair Market Rent
2BR Fair Market Rent
BLS OEWS 2023 — metro-level data
State tax data is not yet available for these cities.
Newark
Income tax: N/A
Sales tax: N/A
Sacramento
Income tax: N/A
Sales tax: N/A
Newark has cleaner air on average: 46.0 AQI (Good) compared to 52.0 AQI (Moderate) in the other city. Lower AQI means cleaner, healthier air.
Pick Sacramento if you prioritize lower overall cost of living (index 109.1 vs 112.6).
Pick Sacramento if you prioritize higher median household income ($87,321/yr).
Pick Newark if you prioritize cheaper rent ($1,392/mo median).
Pick Newark if you prioritize cleaner air quality (avg AQI 46.0).
Is Newark cheaper than Sacramento?
Sacramento is cheaper overall, with a cost of living index of 109.1 versus 112.6 (US average = 100). That means prices run about 3% lower in Sacramento.
How much is rent in Newark vs Sacramento?
Median rent is $1,392/mo in Newark, NJ and $1,779/mo in Sacramento, CA. Newark, NJ has the lower rent by about 22%.
Which has higher salaries — Newark or Sacramento?
Median household income is $52,060 in Newark, NJ and $87,321 in Sacramento, CA. Sacramento, CA has the higher median income. Note that BLS occupational wages in the table above show wages for specific jobs.
Which city has better air quality?
Newark, NJ has better air quality on average: 46.0 AQI versus 52.0 AQI. Both are EPA AirNow annual averages; lower is better.
Which has lower taxes — Newark or Sacramento?
State tax data is not yet available for one or both cities.
What salary do I need in Sacramento to match my Newark income?
To maintain the same purchasing power, a salary of $100,000 in Newark, NJ is equivalent to roughly $96,845 in Sacramento, CA (using the BEA Regional Price Parity ratio). Use the salary calculator above for any income amount.
Data last updated: December 1, 2026 · Sources: US Census ACS, BEA RPP, BLS OEWS, HUD FMR, EPA AirNow, Tax Foundation · Methodology
