Is it cheaper to live in Houston or Philadelphia?

Houston, TX is cheaper. Its monthly baseline of $1,360 (1BR rent + utilities) runs about 4% below Philadelphia, PA's $1,410, mainly because of electricity costs.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $46,000 a year in Houston versus $48,000 in Philadelphia.

Which has lower taxes, Houston or Philadelphia?

Houston is taxed under Texas's rules (no state income tax and a 6.25% state sales tax); Philadelphia under Pennsylvania's (a top state income tax rate of 3.07% and a 6% state sales tax).

Houston vs Philadelphia Cost of Living 2026

Houston

Texas

$1,360/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 $1,360 in Houston, TX versus $1,410 in Philadelphia, PA. Overall, Houston, TX is roughly 4% cheaper to live in day-to-day than Philadelphia, PA, driven mainly by electricity costs.

Median household income is $62,894 in Houston, TX and $60,698 in Philadelphia, PA — about 3% higher in Houston, TX. Texas has no state income tax and a 6.25% state sales tax; Pennsylvania has a top state income tax rate of 3.07% and a 6% state sales tax.

Houston, TX

Philadelphia, PA

Rent

Studio

$1,142

$1,126

+1% in Houston, TX

1 Bedroom

$1,156

$1,189

+3% in Philadelphia, PA

2 Bedroom

$1,375

$1,394

+1% in Philadelphia, PA

3 Bedroom

$1,664

$1,406

+16% in Houston, TX

Buying a Home

Median Home Value

$253,400

$232,400

+8% in Houston, TX

Income

Median Household Income

$62,894

$60,698

+3% in Houston, TX

Metro Median Wage (annual)

$49,410

$54,310

+10% in Philadelphia, PA

People & Lifestyle

Median Age

34.3 yr

35.1 yr

+0.8 yr in Philadelphia, PA

Homeownership

42.0%

52.3%

+10.3 pp in Philadelphia, PA

Bachelor's+ (25+)

36.0%

34.6%

+1.4 pp in Houston, TX

Avg Commute

27.3 min

32.0 min

+4.7 min in Philadelphia, PA

Crime (per 100k/yr)

Violent Crime

1,153.8

917.1

+21% in Houston, TX

Property Crime

4,324.9

4,615.3

+7% 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

70.3°F

57.1°F

+13.2°F in Houston, TX

Annual Precipitation

54.6 in

48.5 in

+6.1 in in Houston, TX

Gas

Regular Gasoline

$3.52/gal

$3.86/gal

+10% in Philadelphia, PA

Area: Houston vs East Coast (PADD 1).

Public Transit

Base Fare (one-way)

$1.25

$2.50

+100% in Philadelphia, PA

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

Utilities

Electricity (¢/kWh)

16.4

21.6

+31% in Philadelphia, PA

Natural Gas ($/MCF)

$30.48

$19.17

+37% in Houston, TX

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

Groceries

Milk (gal)

$4.00

$4.31

+8% in Philadelphia, PA

Bread (lb)

$1.75

$1.92

+10% in Philadelphia, PA

Eggs (doz)

$2.21

$2.19

+1% in Houston, TX

Ground Beef (lb)

$6.45

$6.90

+7% in Philadelphia, PA

Chicken (lb)

$1.90

$2.19

+15% in Philadelphia, PA

Bananas (lb)

$0.62

$0.69

+12% in Philadelphia, PA

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

State Taxes

Sales Tax (TX / PA)

6.25%

+0.3 pp in TX

Income Tax (top rate)

None

3.07%

+3.1 pp in PA

Houston vs Philadelphia — FAQ

Is it cheaper to live in Houston or Philadelphia?: Houston, TX is cheaper. Its monthly baseline of $1,360 (1BR rent + utilities) runs about 4% below Philadelphia, PA's $1,410, mainly because of electricity costs.
How much more do you need to earn to live in Houston than in Philadelphia?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $46,000 a year in Houston versus $48,000 in Philadelphia.
Which has lower taxes, Houston or Philadelphia?: Houston is taxed under Texas's rules (no state income tax and a 6.25% state sales tax); Philadelphia under Pennsylvania's (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).