Is it cheaper to live in Allentown or Philadelphia?

Allentown, PA is cheaper. Its monthly baseline of $1,320 (1BR rent + utilities) runs about 6% below Philadelphia, PA's $1,410, mainly because of rent.

How much more do you need to earn to live in Allentown than in Philadelphia?

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $44,000 a year in Allentown versus $48,000 in Philadelphia.

Which has lower taxes, Allentown or Philadelphia?

Neither — both are in Pennsylvania, so they share the same state tax rates: a top state income tax rate of 3.07% and a 6% state sales tax.

Allentown vs Philadelphia Cost of Living 2026

Allentown

Pennsylvania

$1,320/mo est.

Philadelphia

Pennsylvania

$1,410/mo est.

Monthly estimate = 1BR rent + electricity + gas

A one-person monthly baseline (1BR rent plus typical utilities) runs $1,320 in Allentown, PA versus $1,410 in Philadelphia, PA. Overall, Allentown, PA is roughly 6% cheaper to live in day-to-day than Philadelphia, PA, driven mainly by rent.

Median household income is $53,403 in Allentown, PA and $60,698 in Philadelphia, PA — about 12% higher in Philadelphia, PA. Both cities are in Pennsylvania, so state taxes are identical: a top state income tax rate of 3.07% and a 6% state sales tax.

Allentown, PA

Philadelphia, PA

Rent

Studio

$1,043

$1,126

+8% in Philadelphia, PA

1 Bedroom

$1,100

$1,189

+8% in Philadelphia, PA

2 Bedroom

$1,271

$1,394

+10% in Philadelphia, PA

3 Bedroom

$1,431

$1,406

+2% in Allentown, PA

Buying a Home

Median Home Value

$188,900

$232,400

+23% in Philadelphia, PA

Income

Median Household Income

$53,403

$60,698

+14% in Philadelphia, PA

Metro Median Wage (annual)

$48,990

$54,310

+11% in Philadelphia, PA

People & Lifestyle

Median Age

32.4 yr

35.1 yr

+2.7 yr in Philadelphia, PA

Homeownership

42.3%

52.3%

+10.0 pp in Philadelphia, PA

Bachelor's+ (25+)

19.4%

34.6%

+15.2 pp in Philadelphia, PA

Avg Commute

24.8 min

32.0 min

+7.2 min in Philadelphia, PA

Crime (per 100k/yr)

Violent Crime

274.5

917.1

+234% in Philadelphia, PA

Property Crime

1,591.5

4,615.3

+190% in Philadelphia, PA

FBI Crime Data Explorer. Offenses per 100,000 residents per year; agency reporting practices vary, so this is approximate.

Climate

Avg Annual Temperature

51.2°F

57.1°F

+5.9°F in Philadelphia, PA

Annual Precipitation

45.4 in

48.5 in

+3.2 in in Philadelphia, PA

Gas

Regular Gasoline

$3.86/gal

about equal

Area: East Coast (PADD 1) vs East Coast (PADD 1).

Public Transit

Base Fare (one-way)

—

$2.50

Adult base one-way fare — — vs SEPTA (2026).

Utilities

Electricity (¢/kWh)

21.6

about equal

Natural Gas ($/MCF)

$19.17

about equal

Residential, state-level averages (EIA). MCF = 1,000 cubic feet.

Groceries

Milk (gal)

$4.31

about equal

Bread (lb)

$1.92

about equal

Eggs (doz)

$2.19

about equal

Ground Beef (lb)

$6.90

about equal

Chicken (lb)

$2.19

about equal

Bananas (lb)

$0.69

about equal

Average prices — Northeast vs Northeast (BLS). Regional where available, otherwise U.S. average.

State Taxes

Sales Tax (PA / PA)

about equal

Income Tax (top rate)

3.07%

about equal

Allentown vs Philadelphia — FAQ

Is it cheaper to live in Allentown or Philadelphia?: Allentown, PA is cheaper. Its monthly baseline of $1,320 (1BR rent + utilities) runs about 6% below Philadelphia, PA's $1,410, mainly because of rent.
How much more do you need to earn to live in Allentown than in Philadelphia?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $44,000 a year in Allentown versus $48,000 in Philadelphia.
Which has lower taxes, Allentown or Philadelphia?: Neither — both are in Pennsylvania, so they share the same state tax rates: a top state income tax rate of 3.07% and a 6% state sales tax.

Sources: US Census Bureau, ACS 5-Year (rent, income, home value, demographics); NOAA Climate Normals 1981–2010 (climate); EIA weekly retail (gas); Tax Foundation 2026 (state taxes).