This paper proposes a hierarchical coding technique based on the All Phase Inverse Discrete Cosine Transform (APIDCT) interpolation. The All Phase Digital Filter (APDF) is a new type of linear phase filter. This paper compares the performances of several kinds of APDF and demonstrates that the APIDCT filter has the best performance in image interpolation. By combining the interpolation filter with multi-subsampling and adaptive arithmetic coding, a simple hierarchical image coding method is shaped up. This technique can be used to scalable coding in spatial resolution. Simulation results show that the compression ratio and restored image quality better than JPEG11 compression can be achieved by only three layers, and no block effect is found even in high compression ratio.