A well-known city in the U.S., Philadelphia also welcomes ex-pats and provides jobs and higher education to students for its culture, traditions, and job opportunities. For a family of four, the Philadelphia living cost is $3673; for a student, it is $2032; and for a bachelor, it is $1835.
On average, a family of three members, a couple, and an international student pay $3500 monthly for rent, while one person pays $1300. There is a vast difference in living costs between neighborhoods in Philadelphia. For example, the average rent per month for a flat/house in a typical area for a family of four is $2682.
Cost of living: what does it mean?
Considering the cost of living in a new city or town is one of the most important considerations before moving there. In a particular location, the cost of living is the money it costs to maintain a certain standard of living.
Due to the variation in the prices of goods and services between cities, calculating the cost of living will provide insight into how affordable it is to reside in a particular area. Several expenses contribute to the cost of living, such as housing, transportation, food, and entertainment costs. Salary levels in a specific geographical area are also measured against the cost of living in that area.
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Break Down of Philadelphia living cost
An overview of Philadelphia’s utilities
Approximately $145.61 per month is the average utility bill for Philadelphia. Those figures are for a 915-square-foot apartment that includes the following things:
- Electricity
- Heating
- Water
- Garbage collection services.
The utility cost in Philadelphia is below the overall utility costs of the country.
Philadelphia’s tax rates
Philadelphia has an average effective property tax rate of 0.98 percent. Pennsylvania’s flat income tax rate is 3.07%, which is good news for tax-balance advocates. Out of the eight states with flat taxes, it has the lowest income tax rate. No other state with a flat income tax lower than this one exists. As an additional tax, Philadelphia charges 3.891% in municipal income taxes, also known as local earned income taxes.
In Pennsylvania, there is a 6% statewide sales tax. It is important to note that Philadelphia has an additional 2% sales tax, making up 8%. The rate is approximately equal to the rate of sales tax in New York City, which is 8.875%. No sales tax is higher than Chicago’s, which is 10.25%.
Costs of groceries in Philadelphia on average
An average household in the city spends approximately $300 – $400 per month on groceries. Restaurant meals and food from food trucks are not included in the budget. As a result of the city’s strange liquor laws, several restaurants allow BYOB (Bring Your Own Bottle), allowing you to save some money.
Typical housing costs in Philadelphia
Typical housing costs are under $300,000 is still a reasonable price for a single-family home in the Philadelphia metro area. It is estimated that the median sale price of such a home in Philadelphia will be $224,600, according to 2022 data from the National Association of Realtors. The city’s housing market is substantially cheaper than that of Boston ($460,300) and New York ($403,900).
While nearly 70% of Philadelphia homes are under $238,000, Philly houses have shown strong appreciation for decades. In more precise terms, the house rates increased by 141.16%. Pennsylvania has some of the best rates in the country.
Philadelphia’s transportation costs
Commuting to Philadelphia can be pretty challenging if you are driving your vehicle. Regarding the number of hours spent in cars and from work, the city is ranked second only to New York City in terms of traffic congestion. Nevertheless, the cost of commuting in Philadelphia is not excessively high. It ranks 29th out of the 50 largest cities in the Transportation Index, with a score of 13.5%.
The car cost is high in many cities along the east coast.
Fortunately, Philadelphia has a gallon of the average gas price of $2.43, just 28 cents above the national average. According to the latest figures, Pennsylvania has the highest gasoline tax – currently 58 percent per gallon.
Parking is one of the costliest aspects of driving in the city. It is estimated that Philadelphians pay $275 per month for parking. In outlying areas, the cheapest lots cost approximately $140 per month, while in Center City, lots can be up to $500 per month.
Philadelphia has no toll roads within its city limits, but the Pennsylvania Turnpike runs north and south to the north. PA Turnpike charges 13 cents a mile. The Walt Whitman, Betsy Ross, Ben Franklin, and Tacony Palmyra Bridges connect the city with New Jersey, and the Walt Whitman Bridge is a toll bridge. Philly carries no toll into Jersey, but it costs five dollars to return (except for Tacony Palmyra).
Philadelphia’s healthcare costs
The Pennsylvania Hospital was established in 1751 by Benjamin Franklin, making it the oldest hospital in the nation. Philadelphia is home to over a dozen major hospitals, several smaller ones, and several children’s and cancer specialties centers. In terms of quality healthcare, Philadelphia is a hotbed.
The excellence of the Philadelphia healthcare system is balanced by its broadness of services. Consequently, the city’s healthcare prices are astonishingly low. Compared to the national average for healthcare costs, Philadelphia ranks 111th in the country.
The average cost of a visit to a physician (particularly to a general practitioner) is $133. Taking into account this data, the Philadelphia healthcare system rank 51st nationwide. The city’s rank in terms of dentist fees is 141st, meaning the appointment with a dentist is cheaper in the city.
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FAQs (Frequently Asked Questions)
To live in Philly, what salary do you need?
For a comfortable life in Philadelphia, you need just under $60,000 a year if you follow the 50-30-20 budgeting rule to the letter. According to research from Go Banking Rate, you need exactly $59,384 to live in Philadelphia.
How affordable is Philly as a place to live?
It is fair to say that Philadelphia’s cost of living is higher than the national average, but by and large, it is affordable compared to other major cities.
