CITY COMPARISON
Philadelphia vs Raleigh Cost of Living: Which Is Cheaper in 2026?
Data updated May 2026. Rent from Zillow ZORI, taxes from the Tax Foundation, cost-of-living index from BEA.
Philadelphia to Raleigh-Durham is a Northeast-to-Research-Triangle move that families and tech workers make often. The cost gap is smaller than New York pairs, but still real.
Pennsylvania uses a flat 3.07 percent income tax, which is one of the lower flat rates in the country. North Carolina is higher at a flat 4.5 percent. Raleigh rent runs lower than Philadelphia's, the cost of living is near the national average, and Raleigh's schools rate among the best of any metro we track.
Is Philadelphia or Raleigh cheaper to live in?
At a $100,000 salary, moving from Philadelphia to Raleigh leaves your yearly disposable income close to unchanged. At a $150,000 salary the two cities come out about even.
Raleigh wins overall, despite the slightly higher income tax. Lower rent, top-tier schools, and a strong tech job market in the Research Triangle outweigh Pennsylvania's tax advantage. Philadelphia competes on cheaper rent than its Northeast peers and historic urban character.
DISPOSABLE INCOME: MOVING PHILADELPHIA → RALEIGH
AT A $100,000 SALARY
roughly a wash
AT A $150,000 SALARY
roughly a wash
Assumes the same gross salary in both cities (the remote-work case) and a single filer renting at the local median. Positive means Raleigh leaves more money after tax, housing, and everyday costs.
Full cost breakdown: Philadelphia vs Raleigh
Here is where every dollar goes in each city, at two salary levels. Taxes, housing, and everyday costs are all in.
AT A $100,000 SALARY
| Line item | Philadelphia | Raleigh |
|---|---|---|
| Gross salary | $100,000 | $100,000 |
| Federal income tax | -$15,000 | -$15,000 |
| State income tax (3.07%) Raleigh: (4.5%) | -$3,070 | -$4,500 |
| FICA (Social Security + Medicare) | -$7,650 | -$7,650 |
| Housing (median rent) ($1,480/mo) Raleigh: ($1,310/mo) | -$17,760 | -$15,720 |
| Other living costs (COL index 102) | -$30,300 | -$30,300 |
| Sales tax on spending (6.34%) Raleigh: (7%) | -$1,345 | -$1,485 |
| Disposable income / year | $24,875 | $25,345 |
AT A $150,000 SALARY
| Line item | Philadelphia | Raleigh |
|---|---|---|
| Gross salary | $150,000 | $150,000 |
| Federal income tax | -$27,000 | -$27,000 |
| State income tax (3.07%) Raleigh: (4.5%) | -$4,605 | -$6,750 |
| FICA (Social Security + Medicare) | -$11,475 | -$11,475 |
| Housing (median rent) ($1,480/mo) Raleigh: ($1,310/mo) | -$17,760 | -$15,720 |
| Other living costs (COL index 102) | -$30,300 | -$30,300 |
| Sales tax on spending (6.34%) Raleigh: (7%) | -$1,345 | -$1,485 |
| Disposable income / year | $57,515 | $57,270 |
Philadelphia vs Raleigh: taxes, rent, and schools at a glance
| Metric | Philadelphia | Raleigh |
|---|---|---|
| State income tax | 3.07% | 4.5% |
| Median 1-bedroom rent | $1,480/mo | $1,310/mo |
| Combined sales tax | 6.34% | 7% |
| Cost-of-living index (US avg = 100) | 102 | 102 |
| School composite rating (1-10) | 5/10 | 8/10 |
Who should pick Philadelphia?
Stay in Philadelphia if you want a real Northeast city with one of the lowest flat income taxes in the country and a still-affordable urban core. The medical and education sectors are deep there.
Who should pick Raleigh?
Pick Raleigh if schools, lower rent, and the Research Triangle job market matter more than Philadelphia's slightly lighter income tax. For families, this one is rarely close.
How we calculated this
Disposable income is gross salary minus federal income tax, state income tax, FICA, housing, everyday non-housing costs, and sales tax on discretionary spending. Federal tax uses 2026 effective rates after the standard deduction for a single filer. State income tax is a single-bracket approximation for mid-six-figure earners. Housing is the median 1-bedroom rent. Non-housing costs scale with the BEA cost-of-living index. Sales tax is applied to roughly 70 percent of discretionary spending, since groceries and many services are reduced-rate or exempt in most states.
The numbers on this page assume the same gross salary in both cities. That is the remote-work scenario, and it is the cleanest way to isolate the cost-of-living difference. If a new job would rebase your salary by city, plug both real offers into the tool below.
Run your own Philadelphia vs Raleigh numbers
The interactive Move-To-City tool lets you set different salaries for each city, enter your actual rent, switch filing status, and see the full FIRE-timeline impact of the move.
Open the Move-To-City tool →KEEP READING
Educational only, not financial advice. Cost-of-living estimates are modeled approximations from public data and will not match any individual budget exactly. Verify rent, tax, and salary figures for your own situation before making a move.