Cost of Living in Princeton

Princeton's cost of living runs genuinely high across nearly every category, reflecting the town's university-and-pharma-anchored high-income resident base.

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Among the highest housing costs in this project's NJ buildout

Zillow's own average home value ran approximately $974,452 (08540 ZIP), with a separately-cited median sale price near $1,389,000 -- genuinely elevated relative to every other New Jersey Tier A market documented in this project.

A property-tax rate above the state average

Princeton's 2.51% effective property-tax rate runs above New Jersey's own 1.88%-2.23% statewide average, layering a real, substantial ongoing cost onto the town's already-high purchase prices.

New Jersey's graduated income tax reaches Princeton's high earners

New Jersey's real, graduated 7-bracket state income tax (1.4%-10.75%) applies statewide, reaching meaningfully into Princeton's own genuinely high-income resident base (median household income approximately $120,000) at the upper brackets.

Key takeaways

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Last reviewed: 2026-08-25. Independent research; not financial, tax, or legal advice -- confirm current figures with a local professional before making a decision.