Living in Pennsylvania: Income, Housing, Taxes & Cost of Living (2026)
By Wealthvieu
·
Updated
Table of Contents
Pennsylvania at a Glance
| Metric |
Value |
National Rank |
| Population (2024) |
13.0 million |
5th |
| Median household income |
$72,627 |
Average |
| Median home price |
$260,000 |
Below average |
| Cost of living index |
93 |
Below average |
| State income tax |
3.07% flat |
Very low |
| Sales tax |
6% (+ 2% Philadelphia) |
Average |
| Property tax (effective rate) |
1.49% |
Above average |
Income and Housing: Two Major Metros
Philadelphia Metro
| Area |
Median Income |
Median Home Price |
Median Rent (2BR) |
| Philadelphia (city) |
$55,000 |
$250,000 |
$1,400 |
| Main Line (Lower Merion) |
$130,000 |
$680,000 |
$2,000 |
| Delaware County |
$72,000 |
$310,000 |
$1,400 |
| Chester County |
$110,000 |
$450,000 |
$1,700 |
| Bucks County |
$95,000 |
$420,000 |
$1,600 |
Pittsburgh Metro
| Area |
Median Income |
Median Home Price |
Median Rent (2BR) |
| Pittsburgh (city) |
$55,000 |
$225,000 |
$1,200 |
| Cranberry Township |
$110,000 |
$380,000 |
$1,500 |
| Mt. Lebanon |
$100,000 |
$360,000 |
$1,400 |
| Monroeville |
$60,000 |
$210,000 |
$1,100 |
Other Cities
| City |
Median Income |
Median Home Price |
Median Rent (2BR) |
| Allentown/Bethlehem |
$55,000 |
$285,000 |
$1,250 |
| Harrisburg |
$40,000 |
$155,000 |
$1,050 |
| Lancaster |
$52,000 |
$280,000 |
$1,200 |
| State College |
$48,000 |
$320,000 |
$1,250 |
| Scranton |
$42,000 |
$170,000 |
$950 |
| Erie |
$40,000 |
$145,000 |
$850 |
Tax Complexity: Low State, High Local
Pennsylvania’s 3.07% flat state income tax is among the lowest in the nation, but local taxes change everything:
| City/Area |
Local Tax (Earned Income Tax) |
Total State + Local |
| Philadelphia (wage tax) |
3.75% (residents) |
6.82% |
| Pittsburgh |
3% |
6.07% |
| Scranton |
3.4% |
6.47% |
| Many suburbs |
1-1.5% |
4.07-4.57% |
Philadelphia’s 3.75% wage tax makes it one of the highest locally-taxed cities in America.
Property Tax Variance
| County |
Effective Rate |
| Philadelphia |
1.30% |
| Allegheny (Pittsburgh) |
2.01% |
| Chester County |
1.25% |
| Monroe County (Poconos) |
1.95% |
| Centre County (State College) |
1.30% |
Pennsylvania Pros and Cons
| Financial Pros |
Financial Cons |
| Low 3.07% flat state income tax |
High local taxes (Philadelphia: 3.75%) |
| Pittsburgh is very affordable |
Above-average property taxes |
| Below-average COL (93 overall) |
Philadelphia wage tax deters business |
| Strong healthcare and education sectors |
Rural PA losing population |
| No sales tax on groceries or clothing |
Cold winters, heating costs |
Related: Cost of Living by State | State Income Tax Rates | Property Tax by State
