Atlanta vs Philadelphia: cost of living compared
Philadelphia is 4% more expensive than Atlanta overall. State income tax tops out around 3.07% in PA vs 5.49% in GA.
Indexes use a US average of 100: below 100 is cheaper than the national average. Housing and transportation are derived from median home prices, rents and commute times; figures come from BLS, Census ACS, Numbeo and the MIT Living Wage Calculator.
The big picture
Comparing Atlanta and Philadelphia reveals a slightly higher overall cost of living in Philadelphia. While some expenses like housing are noticeably lower there, other categories, particularly food and healthcare, contribute to Philadelphia's higher total. Transportation costs are also somewhat elevated in Philadelphia, though the difference is not substantial. The primary driver of the overall cost difference is the varied pricing across several everyday categories.
Housing
Housing costs present a significant difference, with home prices in Philadelphia being considerably lower than in Atlanta. For renters, however, the median cost for a one-bedroom apartment is roughly similar in both cities. Atlanta's housing index is above the national average, while Philadelphia's is below, indicating a more affordable home-buying market in the latter. Both cities offer a mix of housing types, from historic rowhouses in Philadelphia to more suburban-style homes in Atlanta.
Taxes and everyday costs
Daily expenses vary across the metros. Philadelphia has a lower state income tax rate, which can impact take-home pay. However, food, healthcare, and utility costs are all higher in Philadelphia compared to Atlanta. Transportation expenses are also somewhat elevated in Philadelphia, suggesting that routine spending on necessities, beyond housing, tends to be more expensive there, balancing out some of the housing savings.
Lifestyle trade-offs
Beyond costs, movers will notice distinct lifestyle differences. Atlanta offers a generally warmer, humid subtropical climate with mild winters, while Philadelphia experiences four distinct seasons, including colder winters. Philadelphia's urban core is denser and more walkable, with extensive public transit, whereas Atlanta is more car-dependent, though it has a growing transit system. Commute times are quite similar, but the character of daily travel can differ significantly.
Bottom line
For a household budget, moving between Atlanta and Philadelphia involves trade-offs. Philadelphia offers a substantial advantage in home purchase prices and a lower state income tax. However, these savings are partially offset by higher costs for food, healthcare, utilities, and transportation. Renters might find their housing costs are comparable in both metros. The decision ultimately depends on whether housing affordability or everyday spending and tax differences are a higher priority for your financial plan.
| Measure | Atlanta, GA | Philadelphia, PA |
|---|---|---|
| Overall cost of living (US avg = 100) | 108 | 112 |
| Housing index | 105 | 91 |
| Transportation index | 116 | 120 |
| Food index | 98 | 105 |
| Healthcare index | 102 | 108 |
| Utilities index | 98 | 105 |
| Misc index | 98 | 102 |
| Median home price | $378,000 | $298,000 |
| Median 1-bedroom rent | $1,550/mo | $1,550/mo |
| Average commute | 33 min | 34 min |
Compare any two metros with the free cost of living tool, or see the true monthly cost of a specific Philadelphia home with the True Cost Calculator.