What Is the Cost of Living in Pennsylvania?

The cost of living is the amount of money needed to maintain a certain standard of living, covering expenses like housing, food, transportation, healthcare, and taxes. Understanding these costs is important for financial planning in Pennsylvania.

Overall Cost of Living in Pennsylvania

Pennsylvania has a more affordable cost of living than the national average. Data from the Missouri Economic Research and Information Center (MERIC) in 2022 placed Pennsylvania 27th among states. This indicates a cost of living below many other states, particularly those in the Northeast. The Bureau of Economic Analysis (BEA) estimated the yearly cost of living for a typical adult in Pennsylvania to be approximately $49,040 in 2021.

A cost of living index measures the relative cost of goods and services compared to a national average of 100. An index below 100 means costs are lower than the national average. While the statewide average provides a baseline, actual expenses vary considerably by location within Pennsylvania.

Key Expense Categories

Living in Pennsylvania involves various expenses, with housing often being the most significant. The average rent across the state was around $1,530 per month for a one-bedroom apartment and $1,787 for a two-bedroom apartment as of August 2025. For those looking to purchase a home, the typical value in Pennsylvania was about $286,033 in the second quarter of 2025, while the median sales price was $340,200 in May 2025. Property taxes are an additional component of housing costs, with an average effective rate of around 1.26% to 1.41% of a home’s assessed value.

Utilities are a notable monthly expense. The average total utility bill in Pennsylvania is approximately $443 per month, slightly below the national average. This includes electricity ($150.98/month as of July 2025) and natural gas ($101/month). Water can range from $30 to $50 monthly, and internet and cable add about $108 per month.

Food expenses in Pennsylvania align with national averages. A single person spends approximately $278 on groceries each month. For a family of four, monthly grocery costs range from $800 to $1,000. Common items like a gallon of milk average around $3.60, a loaf of bread about $2.50, and a dozen eggs $3.20 as of April 2025.

Transportation costs are a factor in the cost of living. A single adult in Pennsylvania incurs annual transportation expenses of over $4,400. Gas prices in the state are near or slightly above the national average, at around $3.64 per gallon in 2025. Vehicle insurance premiums average about $1,071.26 annually. Public transportation is available in major cities, with single rides costing around $2.50 and monthly passes $100.

Healthcare expenditures are substantial, with the average annual per-person cost estimated at $8,641. Health insurance premiums vary based on coverage. An individual pays between $479 and $653 per month, while family plans range from $1,356 to $1,703 monthly. For example, a 40-year-old on a Silver plan might pay an average of $610 per month, with the average benchmark premium at $461 per month in 2025. Co-pays for doctor visits and prescription medication costs depend on the insurance plan and medical needs.

Miscellaneous and personal care expenses also contribute to the cost of living. These include clothing, personal care products, and entertainment. Figures for these categories fluctuate based on individual lifestyle choices, but are an ongoing part of a household’s budget.

Regional Variations Across Pennsylvania

The cost of living in Pennsylvania varies regionally, with expenses fluctuating based on population density, housing demand, and local economic conditions. Major metropolitan areas like Philadelphia and Pittsburgh have higher costs than statewide averages, especially for housing. In Philadelphia, the average rent for a one-bedroom apartment is around $1,820, and a two-bedroom is about $2,100, with the median home price around $265,000. These areas also often have higher local sales and income taxes, with Philadelphia levying an additional 2% local sales tax and some of the highest local income tax rates in the state, such as 3.75%.

In contrast, mid-sized cities such as Harrisburg and Erie offer more affordable living. In Harrisburg, average rents are lower, with a one-bedroom at about $1,275 and a two-bedroom at $1,480, and a median home price of $148,000. Erie has particularly low costs, with average rents around $1,110 for a one-bedroom and $1,240 for a two-bedroom, and a median home price of $134,000. These differences are due to varying demand and supply in housing markets, and the availability and cost of public transportation.

Rural parts of Pennsylvania offer the lowest cost of living, especially for housing and property taxes. Forest County reported one of the lowest median property tax burdens at $1,162 annually. However, wages in some rural counties can also be lower; Sullivan County, for instance, had one of the lowest average weekly wages in the state. These variations underscore the importance of considering specific locations when evaluating the cost of living.

Economic Factors Affecting Cost of Living

Taxation significantly impacts the financial picture for Pennsylvania residents. The state imposes a flat individual income tax rate of 3.07%, meaning all taxable income is taxed at the same percentage. Many municipalities also levy their own local income taxes, which vary.

Pennsylvania has a state sales tax rate of 6% on many goods and services. However, certain counties, like Philadelphia and Allegheny County, impose additional local sales taxes, increasing the combined rate to 8% in Philadelphia and 7% in Allegheny County. Property taxes are another consideration, collected locally by counties, municipalities, and school districts. These taxes are based on a property’s assessed value and vary widely, with an average effective rate of 1.26% to 1.41% statewide, making them a notable factor in housing affordability.

The job market and average wages influence Pennsylvania’s affordability. The average hourly wage in Pennsylvania was $29.77 in 2025, and the median household income was $65,579. Wage growth in Pennsylvania outpaced the national average from 2019 to 2023, indicating an improving economic landscape for workers. However, income levels vary significantly by industry and region, with medical professions often commanding higher salaries. These income levels directly impact disposable income and financial well-being.