What is the cost of living in Pennsylvania?
Learn about tax rates, housing, childcare, grocery costs, and other factors that influence the cost of living in Pennsylvania.
Summary
The Pennsylvania cost of living is approximately $49,040 per adult year.
Pennsylvania PA has a state income tax flat rate of 3.07%.
The state sales tax rate in Pennsylvania is 6%.
Ask a financial advisor for cost-of-living management advice.
What is the average cost of living in Pennsylvania?
Nearly 13 million people call Pennsylvania home.
According to data gathered in 2022 from MERIC, the Missouri Economic Research and Information Center, the average cost of living in Pennsylvania places the state 27th in a list of states with the lowest to the highest cost of living.
According to the Bureau of Economic Analysis 2021 Personal Consumption Expenditures, data shows that the yearly Pennsylvania cost of living is $49,040 per typical adult.
For comparison, you can also check out the average salary in Pennsylvania here.
How much will I pay in taxes in Pennsylvania?
Pennsylvania’s state income tax is a flat rate of 3.07%. The state sales tax rate in Pennsylvania is 6%. However, it's important to note that additional local sales taxes can be imposed by individual municipalities, which can affect what the cost of living in Pennsylvania is for you.
Pennsylvania's local sales tax rates can range from 0% to 2%, depending on the specific location. Therefore, Pennsylvania's total sales tax rate can be higher than the state rate of 6% due to the inclusion of local taxes.
You can also check out the complete guide to taxes in Pennsylvania here.
Here's a comparison of income tax rates among some neighboring states:
| State | Income Tax Rates |
|---|---|
| State | Income Tax Rates |
| Pennsylvania | 3.07% flat rate |
| New York | 4.00% - 8.82% (progressive tax brackets) |
| New Jersey | 1.40% - 10.75% (progressive tax brackets) |
| Delaware | No state income tax |
| Maryland | 2.00% - 5.75% (progressive tax brackets) |
How much does housing cost in Pennsylvania?
As of March 2023, the average home value in Pennsylvania is estimated to be around $243,859, according to the Zillow Home Value Index.
The average price of rental apartments nationwide is $1,702. In Pennsylvania, the average rent for an apartment in Philadelphia is $1,896. It’s important to note that housing prices can significantly differ across various regions within the state, which in turn leads to variations in the monthly cost of living in Pennsylvania. Here are some examples of typical home prices based on Zillow's data:
| City | Average Home Value |
|---|---|
| City | Average Home Value |
| Philadelphia | $218,435 |
| Pittsburgh | $224,478 |
| Allentown | $257,162 |
| Erie | $163,947 |
| Reading | $221,397 |
How can I manage the cost of living in Pennsylvania?
There are various ways you can manage the Pennsylvania cost of living. One way is to take advantage of job opportunities that offer better remuneration. You can also look at expanding and diversifying your income streams, such as by turning a hobby into a way to make more money.
Consider moving to a more affordable area than where you currently live. Ask a financial advisor to help you create a bespoke financial plan. Get matched with a financial advisor.
What is the average cost of utilities in Pennsylvania?
Utility costs play a significant role in the average cost of living in Pennsylvania. According to Forbes, the average monthly cost is around $443. See how much an average household spends on utilities such as energy, water, internet, natural gas, phone, and streaming in Pennsylvania PA in the table below:
| Utility | Average cost in Pennsylvania |
|---|---|
| Utility | Average cost in Pennsylvania |
| Energy bill | $117.11 |
| Monthly water bill | $31 |
| Internet | $30 |
| Natural gas | $103 |
| Phone bill | $114 |
| Streaming | $48 |
What are the average grocery and food costs in Pennsylvania?
When it comes to groceries and food costs, Pennsylvania generally aligns with prices found elsewhere in the United States.
According to Zippia, those in Philadelphia pay $401 on average each month.
According to 2021 data from the Bureau of Labor Statistics, the average spending on food at home is $5,259 annually, or about $438 per month for US households.
What are the average transportation costs in Pennsylvania?
Transportation costs, including gas prices and vehicle maintenance, impact the overall cost of living in Pennsylvania.
According to MIT, a single adult with no children can expect to pay upwards of $4,400.
Gas prices in Pennsylvania are typically in and around the national average. Pennsylvania was above the national average at the time of writing. These prices fluctuate over time.
It is also worth noting that prices can vary across different regions within the state.
How much does healthcare cost in Pennsylvania?
Healthcare expenses are a key factor when considering the average cost of living in Pennsylvania.
The specific healthcare costs in Pennsylvania can vary depending on factors such as insurance coverage and individual circumstances. Therefore, it is advisable to research and consult with healthcare providers and insurance companies to obtain accurate cost estimates. Check out the average cost of health insurance in the US here.
MIT estimates:
| Scenario | Annual healthcare expenditure |
|---|---|
| Scenario | Annual healthcare expenditure |
| One adult, no children | $3,178 |
| One adult, one child | $9,501 |
| One adult, two children | $9,511 |
| Two adults (one working), no children | $7,023 |
| Two adults (one working), one child | $9,511 |
| Two adults (one working), two children | $9,437 |
| Two adults (two working), no children | $7,023 |
| Two adults (two working), one child | $9,511 |
| Two adults (two working), two children | $9,437 |
What is the average childcare cost in Pennsylvania?
Families in Pennsylvania currently pay around $9,532 per year for childcare for one child. This figure doubles for two children.
However, it's important to note that this figure can vary across the state, depending on location and education type.
How much does it cost to live in Pennsylvania?
The amount of money you need to live comfortably in Pennsylvania can vary depending on location, lifestyle, family size, and personal preferences. However, as the most expensive state in the US, you may need more than you first think.
It's essential to consider these factors, along with personal circumstances and preferences, when evaluating what the cost of living in Pennsylvania is for you.
Get expert financial advice on managing expenses and financial planning from a regulated advisor. Visit Unbiased to learn more about the cost of living, and let us match you with the SEC-regulated advisor who is best suited to meet your needs.
Senior Content Writer
Rachel is a Senior Content Writer at Unbiased. She has nearly a decade of experience writing and producing content across a range of different sectors.