Chicago vs Philadelphia: cost of living compared
Philadelphia is 5% cheaper than Chicago overall. State income tax tops out around 3.07% in PA vs 4.95% in IL.
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
Overall, the cost of living is somewhat higher in Chicago compared to Philadelphia. This difference is largely driven by Chicago's noticeably higher housing costs and miscellaneous expenses. While some categories like food and healthcare are quite similar between the two metros, the cumulative effect makes Philadelphia the more budget-friendly option for many everyday expenditures and larger investments like a home.
Housing
Housing costs, both for buying and renting, are more affordable in Philadelphia. Median home prices are lower, and a typical one-bedroom apartment also commands less rent. Both cities offer a mix of historic rowhouses and modern high-rises, but the entry point for homeownership or rental is generally lower in Philadelphia, providing a more accessible market for many movers.
Taxes and everyday costs
Daily expenses show some variation. State income tax is substantially lower in Pennsylvania, offering a notable saving for residents in Philadelphia. Transportation costs are quite similar, while food and healthcare expenses are practically identical. Utilities, however, are slightly higher in Philadelphia, though this difference is often offset by other savings, particularly the lower income tax burden.
Lifestyle trade-offs
Beyond costs, a move involves lifestyle shifts. Chicago experiences more extreme winter weather and is known for its expansive urban grid and lakefront. Philadelphia offers a milder climate and a more compact, historic urban core. Both cities boast extensive public transit networks, allowing for convenient travel without a personal vehicle, and both have a similar average commute time for residents.
Bottom line
For those weighing a move, Philadelphia generally offers a more economical choice, primarily due to its more affordable housing market and a significantly lower state income tax. While some daily costs are comparable or slightly higher, the overall financial burden is less. Chicago, though offering a different urban experience, comes with a higher price tag for overall living, especially in housing and miscellaneous categories.
| Measure | Chicago, IL | Philadelphia, PA |
|---|---|---|
| Overall cost of living (US avg = 100) | 118 | 112 |
| Housing index | 97 | 91 |
| Transportation index | 121 | 120 |
| Food index | 105 | 105 |
| Healthcare index | 108 | 108 |
| Utilities index | 102 | 105 |
| Misc index | 108 | 102 |
| Median home price | $318,000 | $298,000 |
| Median 1-bedroom rent | $1,650/mo | $1,550/mo |
| Average commute | 34 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.