Philadelphia Poverty Rate Climbs to 20.4% in 2025

The U.S. Census Bureau reported that Philadelphia’s poverty rate reached 20.4% in 2025. This figure means more than one in five residents in the city earned below the federal poverty threshold last year.

The 2025 increase reverses a temporary improvement seen in 2024. In that year, the city’s poverty rate fell below 20% for the first time since at least 1979. The new data indicates that financial conditions for many local households have tightened again.

For a family of four, the federal poverty line is set at an annual income of $32,649. Households earning less than this amount often face difficulty covering basic costs such as housing, groceries, transportation, and health care. The 20.4% rate places the highest burden on residents whose earnings fall just under this mark.

Philadelphia now holds the distinction of being the poorest major city in the United States. New York City and Houston tied for second place among large urban areas with high poverty rates, according to the same Census data. The city’s ranking reflects ongoing economic challenges despite recent policy discussions.

The shift in poverty levels follows a period of modest progress. The decline in 2024 had suggested that economic gains were stabilizing, but the 2025 figures show that instability persists for a large portion of the population. The data underscores the gap between household income and the rising cost of living in the region.