B+
2%
Overall NAT. AVG.
3%
Goods & Services NAT. AVG.
1%
Housing NAT. AVG.
Search Homes for Sale
Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.
The cost of living index is based on a national average of 100. For example, if the cost of living is 90, then it is 10% lower than average. If the cost of living is 110, then it is 10% higher than average. The breakdown for each index is as follows: goods & services (33%), groceries (13%), health care (5%), housing (30%), transportation (9%) and utilities (10%). If the cost of living data was unavailable for this city, estimates based upon nearby cities were used.
Index Philadelphia Pennsylvania National
Cost of living10298100
Goods & Services10399100
Groceries10299100
Health care9494100
Housing9991100
Transportation107106100
Utilities110107100

An Overview of Cost of Living in Philadelphia, PA

Understanding the cost of living in Philadelphia can help future residents assess whether their current financial situation aligns with the expenses they will encounter. It enables them to plan for potential changes in their budget and lifestyle. The Philadelphia cost of living index is 102, which is 2% higher than the national average. The cost of living index is calculated by taking into account multiple categories, which encompass both the cost of everyday expenditures and larger expenses as well.

The cost of living in Philadelphia is about average when compared to all other cities across the nation. You can expect that everyday items like food, goods and services and utility bills will be no more expensive than any other average city. Residents can anticipate living expenses that remain in line with the national average, ensuring a manageable financial burden, making it an attractive choice for those seeking affordability without the constraints of higher everyday expenditures.

What Do Locals Say About the Cost of Living in Philadelphia?

When it comes to knowing a city, its residents are the experts. We conducted a survey with 16 locals to understand their opinions on the cost of living in Philadelphia. The results indicated that 44% found it reasonably priced with decreasing prices of goods and services, while 56% viewed it as quite expensive, with increasing prices.

Is Philadelphia Affordable?

Is Philadelphia affordable? It's a key consideration when pondering a move, as affordability often shapes your choices. The cost of living index (we discussed it earlier), coupled with housing costs and income levels, serves as the cornerstone for determining a location's affordability. Take Philadelphia, for instance, where the median home price falls 7.1% lower than the national average, and monthly rent rates are 14.2% higher than usual. Additionally, median income levels contribute to the equation, with Philadelphia flaunting a median household income of $49,127, 11.2% lower than the national norm.

What Factors can Influence the Cost of Living in Philadelphia?

Transportation: In areas where public transportation is scarce or unavailable, residents often find themselves compelled to own and upkeep vehicles, thereby increasing the overall cost of living. Monthly expenses encompass fuel, insurance, routine maintenance and potentially lease or financing payments. In Philadelphia, the transportation index is 6.7% higher than the national average.

Taxes: Regions that impose higher taxes, including sales and income taxes, can contribute to an increased cost of living. Higher taxes for everyday necessities such as clothing, utilities and food inevitably leads to higher expenditures. Additionally, a higher income tax rate can also play a role in elevating the overall cost of living. In Philadelphia, the prevailing sales tax rate starts at 6%, and income tax rates kick off at 3.07%.

Healthcare: The costs associated with healthcare and insurance premiums can exhibit notable disparities based on the city or state of residence. Access to healthcare facilities, out-of-pocket expenses for medical appointments, dental care charges, prescription medication costs and specialized medical care expenses all contribute to variations in the cost of living. In Philadelphia, healthcare costs are 6.5% lower than the national average.

Where is the Data From?

The Philadelphia cost of living data you see above is sourced from the C2ER cost of living index, providing a practical and accurate means of comparing living expenses in urban areas. Updated quarterly, this index gathers data from over 300 independent researchers, covering more than 60 goods and services, in 6 different categories. These selections are made meticulously to represent a wide range of consumer expenditure categories. The weightings applied to cost differences are based on government survey data that tracks spending patterns among professional and executive households. It's important to note that while the C2ER index excludes data on sales or income tax rates, AreaVibes factors tax rates into the overall cost of living score for each region.

New Real Estate Listings in Philadelphia Area
Search Homes for Sale in Philadelphia, PA

Cost Of Living Quick Facts

  • The cost of living in Philadelphia is 5% higher than the Pennsylvania average
  • The cost of living in Philadelphia is 2% higher than the national average
  • Philadelphia housing is 1% lower than the national average
  • Pennsylvania general sales tax is 18% higher than the national average
  • Pennsylvania state income tax is 36% higher than the national average

Most Affordable Places to Live in and Around Philadelphia

See all the best places to live around Philadelphia

Compare Philadelphia, PA Cost of Living

      vs
      How would you rate the cost of living in Philadelphia?
      Write a review to give others more information about this area.
      Is the cost of living increasing or decreasing in Philadelphia?
      Write a review to give others more information about this area.
      See all Philadelphia poll results

      Salary Calculator

      This is how much you would need to earn in
      Price difference in compared to
      Cost of living index
      Goods & Services index
      Groceries index
      Health care index
      Housing index
      Transportation index
      Utilities index

      Median Income & Debt-To-Income Ratio

      Median Income Per Year Per Month Max Budget (28% DTI) Max Budget (36% DTI)
      Owners$62,089$5,174$1,449$1,863
      Renters$36,648$3,054$855$1,100
      A good indicator of the general affordability of housing in Philadelphia, PA, is the percentage of monthly income that should be spent on housing expenses, otherwise known as the debt-to-income ratio (DTI). Generally speaking, no more than 28 percent of your total gross income should be spent on your housing expenses and not more than 36 percent of your gross income on total expenses, including debts. In Philadelphia, the median monthly income is $62,089 for those who own their own homes. Under the standard rule, that income level would allow for $1,449 to be budgeted for housing expenses each month, at the most. Renters, on the other hand, earn about $36,648, per the median income in the area. That would allow for renters to spend up to $855 on monthly rental expenses.

      Pennsylvania Sales Tax

      State General Sales Tax With Max Surtax
      Pennsylvania 6% 8%

      Pennsylvania Income Tax

      State Income Tax (Low) Income Tax (High)
      Pennsylvania 3.07% 3.07%

      Goods & Services

      Item Philadelphia National avg. Difference
      Haircut $23.54$24.263.0%
      Beauty Salon $66.27$45.5645.4%
      Toothpaste $3.65$3.701.5%
      Shampoo $1.52$1.2818.4%
      Movie $13.75$12.1313.3%
      Bowling $19.47$18.008.1%

      Groceries

      Item Philadelphia National avg. Difference
      Ground Beef $5.76$5.841.3%
      Fried Chicken $1.46$1.577.4%
      Milk $4.67$4.670.0%
      Potatoes $5.37$4.938.8%
      Pizza $11.73$12.092.9%
      Beer $11.99$10.4115.2%

      Health Care

      Item Philadelphia National avg. Difference
      Optometrist $123.50$125.681.7%
      Doctor $132.56$135.782.4%
      Dentist $103.31$113.298.8%
      Ibuprofen $11.22$10.655.3%
      Lipitor $398.10$468.6015.0%

      Housing

      Item Philadelphia National avg. Difference
      Home Price $171,600.00$184,700.007.1%
      Avg. Mortgage Payment $2,169.88$2,346.697.5%
      Apartment Rent $1,084.00$949.0014.2%

      Transportation

      Item Philadelphia National avg. Difference
      Gasoline $3.53$3.462.0%
      Tire Balancing $70.89$59.9218.3%

      Utilities

      Item Philadelphia National avg. Difference
      All Electricity $222.45$193.9914.7%
      Phone $198.27$192.253.1%
      Although the cost of living data is updated regularly, this cost of living information is to be used as estimates only as prices can change on an ongoing basis.

      Nearby cities with low cost of living

      City Population Cost of Living Index National Avg.
      Tavistock, NJ51043.8%
      Arcadia University, PA5951043.8%
      Pine Valley, NJ111043.8%
      Prospect Park CDP, PA2248217.9%
      Audubon Park, NJ9698712.8%
      Philadelphia, PA1,581,5311022.4%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      San Antonio, TX1,529,133955.5%
      Phoenix, AZ1,658,4221066.4%
      San Diego, CA1,414,54516868.2%
      Calgary, AB1,371,990n/a 
      Montréal, QC1,811,008n/a 
      Philadelphia, PA1,581,5311022.4%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.