Memphis vs Philadelphia: cost of living compared
Philadelphia is 44% more expensive than Memphis overall. Memphis (TN) has no state income tax; PA tops out around 3.07%.
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
Memphis offers a significantly lower overall cost of living compared to Philadelphia. The difference is substantial, making Memphis a much more budget-friendly option. This affordability is primarily driven by housing costs, which are considerably lower in Memphis. Other categories like transportation, food, and miscellaneous expenses also contribute to Memphis's more accessible price point, creating a noticeable gap in daily expenses between the two metros.
Housing
Housing in Memphis is remarkably more affordable, whether you're looking to buy or rent. Median home prices are considerably lower, and typical one-bedroom rents are also substantially less than in Philadelphia. Philadelphia's housing market, while diverse, generally presents higher costs, often featuring older, denser housing stock. Property taxes and insurance costs can also vary, but the initial purchase or rental price difference is a major factor.
Taxes and everyday costs
Daily expenses show a clear advantage for Memphis. There is no state income tax in Tennessee, which contrasts with Pennsylvania's state income tax. Transportation costs are noticeably higher in Philadelphia, reflecting a more urbanized environment. Food, healthcare, and utilities are also more expensive in Philadelphia, meaning that everyday spending on necessities will be consistently lower for residents in Memphis.
Lifestyle trade-offs
Moving between these metros means experiencing different climates and paces. Memphis has a humid subtropical climate, with hot summers and mild winters, and a generally slower pace. Philadelphia experiences a humid continental climate with four distinct seasons, including colder winters and warm summers, and a more bustling, dense urban environment. Public transit is more extensive in Philadelphia, while Memphis relies more on personal vehicles for getting around.
Bottom line
For households prioritizing financial savings, Memphis presents a compelling case with its significantly lower cost of living across almost all categories. The substantial difference in housing costs, combined with no state income tax and cheaper everyday expenses, means a move to Memphis could free up a considerable portion of a household budget. Philadelphia, while offering a different urban experience, comes with a noticeably higher price tag for daily life and homeownership.
| Measure | Memphis, TN | Philadelphia, PA |
|---|---|---|
| Overall cost of living (US avg = 100) | 78 | 112 |
| Housing index | 54 | 91 |
| Transportation index | 88 | 120 |
| Food index | 85 | 105 |
| Healthcare index | 88 | 108 |
| Utilities index | 92 | 105 |
| Misc index | 78 | 102 |
| Median home price | $178,000 | $298,000 |
| Median 1-bedroom rent | $900/mo | $1,550/mo |
| Average commute | 25 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.