Cost of Living in Philadelphia, PA
Philadelphia is about 9% more expensive than the national average.
What Things Cost
Compared to the US average (100)
Census ACS 2024
Census ACS 2024
BEA RPP 2023
BEA RPP 2023
Philadelphia at a Glance
On the median income of $60,521, state income tax is roughly $1,858/year.
Sources: Census ACS 2024, Tax Foundation.
Philadelphia is a major American city with a cost of living barely above the national average. The sixth-largest city in the US offers world-class museums, a legendary food scene that extends far beyond cheesesteaks, and two centuries of American history on every block. The median home price of about $225,000 is astonishing for a city this significant. The catch: the city wage tax of about 3.75% on top of Pennsylvania's 3.07% state rate brings the effective income tax to roughly 6.82%.
How People Get Around
Source: Census ACS 2024.
Who Lives Here
Source: Census ACS 2024.
Why People Move to Philadelphia
The food scene is deeper than its reputation suggests. South Philly Italian markets, Reading Terminal Market, and a Michelin-recognized restaurant scene that has exploded in recent years. The Art Museum (it is not just the Rocky steps), the Barnes Foundation, and the Mural Arts program make Philly a genuine arts city. The healthcare systems (Penn Medicine, Jefferson, CHOP) are world-class. The proximity to NYC (75 minutes by Amtrak) and DC (90 minutes) adds geographic value.
Neighborhoods
Rittenhouse Square is the urban heart with restaurants and walkability. Fishtown has become the trendy food and bar district. South Philadelphia offers Italian Market character. Graduate Hospital and Point Breeze are gentrifying. Old City has cobblestones and history. For affordable options, Kensington (parts) and West Philadelphia near Penn offer lower prices.
Things to Consider
The city wage tax is the biggest financial surprise for newcomers. Property taxes are above average. Some neighborhoods have significant crime rates. The school system is uneven, driving many families to the suburbs. Winter is cold. SEPTA (public transit) functions but has chronic funding challenges. The rivalry with New York is real and occasionally exhausting.
Compare Philadelphia To...
Frequently Asked Questions About Philadelphia
By major East Coast city standards, remarkably so. The median home price of $253,600 is a fraction of NYC, Boston, or DC. You can buy a row house in a desirable neighborhood for $300,000-500,000. The city wage tax (3.75%) and property taxes offset some savings, but the overall housing value is genuine.
Philadelphia residents pay a 3.75% wage tax on all earned income, plus the 3.07% state income tax, for a combined rate of about 6.82%. Non-residents who work in Philadelphia pay 3.44%. This is the highest local wage tax in the country and is the main financial drawback of living in the city proper versus the suburbs.
Much cheaper. Philadelphia's median home price ($253,600) is roughly 30% of Manhattan's median and well below Brooklyn's. Rent for a one-bedroom in a desirable Philadelphia neighborhood is $1,400-1,900 versus $2,800-4,500 in comparable NYC areas. The wage tax narrows the gap somewhat, but the housing savings are substantial.