N.J. is expensive. See what $100 gets you here compared to other states, according to report. - NJ.com

It’s no surprise that the cost of living in New Jersey is sky high.

Your purchasing power — how much you can get for your money — basically stinks compared to most other states.

The value of $100 in New Jersey, because of high costs, is really worth $86.81, according to an analysis be The Tax Foundation.

Only Hawaii ($84.67), New York ($85.91), the District of Columbia ($86.13) and California ($86.66) have less purchasing power than New Jersey, the report said.

In the map, $100 represents the amount of goods and services that can be bought in a state with average national prices, the report said. Those with a value that’s higher than $100 can get more for their money, and those with a lower value, like New Jersey, get less.

The Tax Foundation report shows New Jersey is among those with the highest cost of living in the United States. (The Tax Foundation)

The report was based on data from the U.S. Bureau of Economic Analysis (BEA), which measures real personal income by state and metropolitan area each year. This report is based on 2018, the most recent data available.

To make matters worse, New Jersey is among the large metropolitan areas with the slowest growth in personal income at 1.9%.

Only Mississippi (0.9%) and Kentucky (1.4%) had slower growth in personal income, the report said.

Even with the slow income growth for New Jersey, we still earn more money than people in most states, but our higher cost of living makes those dollars worth less, the report said.

For example, the report said, real purchasing power is more than 35 percent greater in Arkansas than it is in California. This means that, on average, someone earning $50,000 in after-tax income in Arkansas would need after-tax earnings of about $67,500 in California to maintain the same standard of living.

Some New Jersey legislators have said the new coronavirus stimulus plan should take into account the cost of living in different states, but it doesn’t look like that’s going to happen.

New Jerseyans would need $1,581 to equal the purchasing power of the $1,200 payment for someone in Mississippi, the state with the lowest cost of living, according to the Federal Reserve Bank of St. Louis.

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Karin Price Mueller may be reached at KPriceMueller@NJAdvanceMedia.com.

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N.J. is expensive. See what $100 gets you here compared to other states, according to report. - NJ.com
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