Boston vs Philadelphia: Northeast Cost of Living 2026

Boston and Philadelphia are two of America's oldest and most storied cities, separated by just 300 miles of I-95. But their costs of living are separated by a much wider gap. If you're priced out of Boston and looking to stay in the Northeast, Philadelphia deserves a serious look.

Overall: Philly Is 32% Cheaper

Boston's cost-of-living index is 149.0 — 49% above the national average. Philadelphia sits at just 101.2, essentially at the national average. That's a 32% difference.

A $100,000 salary in Boston has the equivalent purchasing power of about $67,900 in Philadelphia. That means you could take a significant pay cut moving to Philly and still come out ahead financially.

Housing: The Biggest Gap

Boston's housing index is 203.0 — more than double the national average. Philadelphia's is just 89.0, actually below the national average. This is the widest housing gap in our comparison series.

• Studio: $2,150/mo in Boston vs $1,050/mo in Philly (save $1,100/mo)
• 1-bedroom: $2,500/mo vs $1,200/mo (save $1,300/mo)
• 2-bedroom: $3,100/mo vs $1,500/mo (save $1,600/mo)
• 3-bedroom: $4,000/mo vs $2,000/mo (save $2,000/mo)

That's $19,200/year saved on a 2-bedroom, or $24,000/year on a 3-bedroom. For homebuyers, the difference is even more dramatic — use our mortgage calculator to compare monthly payments.

Groceries: Philly Is Actually More Expensive

Here's a twist: Philadelphia's grocery index (110.5) is slightly higher than Boston's (108.0). This is one of the few categories where the cheaper city costs more. The difference is about $20/month — negligible in the big picture, but worth noting.

Transportation

Boston (134.0) is significantly more expensive for transportation than Philadelphia (104.0). Both cities have excellent public transit systems (MBTA vs SEPTA), but Boston's higher costs reflect expensive car insurance, higher parking rates, and pricier Uber/Lyft rides.

Utilities: Boston Is Much More Expensive

Boston's utility index (131.0) towers over Philadelphia's (111.0). New England electricity rates are among the highest in the nation — nearly double the national average in some months. This adds $85–$100/month to your bills in Boston vs Philly.

Healthcare

Boston (120.0) has higher healthcare costs than Philadelphia (98.0). Ironic, given Boston's world-class hospitals (Mass General, Brigham and Women's). The concentration of premium healthcare institutions drives up costs. Philadelphia has excellent hospitals too (Penn Medicine, Jefferson) at lower price points.

Taxes

Massachusetts has a flat 5% income tax. Pennsylvania has a flat 3.07% — one of the lowest in the Northeast. On $100,000, that's about $1,930 saved in state income tax.

However, Philadelphia imposes a city wage tax of 3.75% for residents, which partially erases the state tax savings. Still, combined state + city taxes are lower in Philly. See your exact take-home pay at TaxTakeHome.com.

What You Give Up Moving to Philly

• Tech/biotech job market: Boston's is elite (Kendall Square, Route 128). Philly is growing but not comparable yet.
• University ecosystem: Both cities have great schools, but the Harvard/MIT halo effect drives Boston's economy.
• Walkability: Both score well, but Boston's compact size makes it more pedestrian-friendly.

What You Gain

• 32% lower overall cost of living
• Half-price housing
• Easy Amtrak access to both NYC and DC
• An underrated food scene (Philly has been a restaurant boom city)
• More space for your money — rowhouses with yards are common and affordable

Verdict

If your career allows it, Philadelphia offers dramatically more purchasing power than Boston. For a couple earning $120k combined, the move could save $25,000+/year. The main reason to stay in Boston is if your career is in biotech, academia, or a field where Boston's ecosystem is irreplaceable.

See your personalized Boston vs Philly comparison, or explore all cities.

Data from BLS Consumer Expenditure Survey, HUD Fair Market Rents 2024–2025, Census Bureau ACS.