Cost of Living in New York
Things cost about ▲ 8% more in New York than the national average.
What Things Cost in New York
Compared to the US national average
See raw index numbers
US national average = 100. Source: BEA Regional Price Parities 2023.
New York State is two completely different economies sharing a border. New York City and its suburbs are among the most expensive places in America, with Manhattan housing costs that are literally off the charts. Upstate New York, from Albany north and west, is genuinely affordable, with Buffalo and Rochester offering housing costs well below the national average. The statewide cost of living at about 24% above average is a weighted average that masks this enormous divide. The state income tax reaching 10.9% applies to everyone, but the cost of living between NYC and Buffalo might as well be different countries.
New York at a Glance
Taxes in New York
New York's state income tax tops out at Up to 10.9%. The combined sales tax averages 4%, which is relatively low. Property taxes run about 1.4% of home value, which on a $380,000 median home means roughly $5,320/year.
Cities in New York
Ranked from least to most expensive. Index 100 = national average.
Explore New York
FAQ About New York
For housing, Manhattan consistently ranks as the most expensive, with median apartment prices exceeding $1 million and average rents above $3,500 for a one-bedroom. The other boroughs (Brooklyn, Queens) are cheaper but still well above the national average. When factoring in all costs including transportation (which is actually lower due to public transit), NYC is among the most expensive but is rivaled by San Francisco and Honolulu.
Very. Buffalo has a median home price under $187,000, Rochester is similar, and Syracuse is even cheaper. The cost of living in these cities is below the national average. The state income tax still applies (up to 10.9%), which is a drawback compared to no-income-tax states, but the housing savings compared to NYC or most coastal metros are enormous.
NYC residents pay federal income tax, New York State income tax (up to 10.9%), and New York City income tax (up to 3.876%). The combined top marginal rate for a high earner in NYC exceeds 50% when including federal tax. Even at moderate incomes, the combined state and city income tax takes a meaningful bite. This is the highest state-plus-local income tax in the country.