Minneapolis vs Philadelphia: cost of living compared
Philadelphia is 4% more expensive than Minneapolis overall. State income tax tops out around 3.07% in PA vs 7.05% in MN.
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 Minneapolis and Philadelphia reveals a slightly higher overall cost of living in Philadelphia. While housing costs are somewhat lower for homeownership in Philadelphia, other significant expenses, particularly transportation, contribute to its higher overall index. Minneapolis, despite its colder climate, offers a more moderate cost profile across several categories, making the overall difference noticeable but not extreme.
Housing
Homeownership is generally more accessible in Philadelphia, with median home prices noticeably lower than in Minneapolis. However, renting a one-bedroom apartment is somewhat more expensive in Philadelphia. Both metros offer a mix of historic and modern housing options. Property taxes and insurance costs will vary, but the initial purchase price for a home favors Philadelphia, while monthly rental costs lean towards Minneapolis.
Taxes and everyday costs
Daily expenses show some key differences. Philadelphia's state income tax is significantly lower than Minneapolis's. However, transportation costs are considerably higher in Philadelphia, likely due to its denser urban environment and reliance on public transit. Food, healthcare, and utilities are all slightly more expensive in Philadelphia, leading to higher everyday spending despite the income tax advantage.
Lifestyle trade-offs
Minneapolis experiences distinct four seasons, including cold, snowy winters, while Philadelphia has a more temperate climate with hot summers. Minneapolis is known for its extensive park system and lakes, offering outdoor recreation. Philadelphia, a historic city, boasts a dense urban core with robust public transportation. Minneapolis generally has a more spread-out feel, while Philadelphia is more compact and walkable.
Bottom line
For those considering a move, Philadelphia presents a lower median home purchase price but higher rental costs and significantly higher transportation expenses. Minneapolis, while having a higher state income tax, offers more moderate costs for transportation, food, and utilities. The decision hinges on whether the savings in home purchase price in Philadelphia outweigh its higher everyday expenses, or if Minneapolis's overall balance is more appealing.
| Measure | Minneapolis, MN | Philadelphia, PA |
|---|---|---|
| Overall cost of living (US avg = 100) | 108 | 112 |
| Housing index | 94 | 91 |
| Transportation index | 98 | 120 |
| Food index | 102 | 105 |
| Healthcare index | 105 | 108 |
| Utilities index | 108 | 105 |
| Misc index | 98 | 102 |
| Median home price | $328,000 | $298,000 |
| Median 1-bedroom rent | $1,450/mo | $1,550/mo |
| Average commute | 27 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.