Cost of Living in Minneapolis, MN
Minneapolis is about 4% more expensive than the national average.
What Things Cost
Compared to the US average (100)
Census ACS 2024
Census ACS 2024
BEA RPP 2023
BEA RPP 2023
Minneapolis at a Glance
On the median income of $77,732, state income tax is roughly $7,657/year.
Sources: Census ACS 2024, Tax Foundation.
Minneapolis offers something unusual: a major metro where the cost of living is essentially at the national average despite a job market dominated by Fortune 500 headquarters. Target, UnitedHealth Group, 3M, General Mills, Best Buy, and US Bancorp are all here. The median home price of about $325,000 is modest for a metro of 3.6 million with this concentration of corporate employment. The catch is the income tax: Minnesota's top rate of 9.85% is the fifth-highest in the nation and kicks in at $183,340, catching upper-middle-income earners. The trade is a city with exceptional parks, a theater scene second only to New York, and a quality of life that consistently ranks near the top nationally.
How People Get Around
Source: Census ACS 2024.
Who Lives Here
Source: Census ACS 2024.
Why People Move to Minneapolis
The parks are extraordinary: the Chain of Lakes, Minnehaha Falls, and a connected trail network that runs through the city. The theater scene (Guthrie Theater, dozens of smaller companies) is the deepest per capita in America. The food scene ranges from Hmong street food to Scandinavian-inspired fine dining. The job market is stable and diverse. The schools, particularly in suburbs like Edina, Wayzata, and Minnetonka, are among the nation's best. The art museums (Walker Art Center, Minneapolis Institute of Art) are world-class and mostly free.
Neighborhoods
North Loop (Warehouse District) is the trendy downtown-adjacent neighborhood. Uptown surrounds the lakes with bars and restaurants. Northeast is the arts and brewery district. Linden Hills feels like a small town within the city. St. Paul, the Twin City, offers a quieter character with Summit Avenue mansions and Grand Avenue shops. For affordability, South Minneapolis, Richfield, and Brooklyn Park offer lower prices within the metro.
Things to Consider
Winter is the defining trade-off. Minneapolis averages 54 inches of snow per year and January temperatures around 13°F with wind chill regularly below zero. The cold season runs November through March. This is not a minor lifestyle factor. The 9.85% top income tax rate is painful for higher earners. The city experienced significant social upheaval in 2020, and the conversation around policing and safety remains active. The metro is fairly car-dependent outside the downtown core, though bike infrastructure is excellent in summer.
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Frequently Asked Questions About Minneapolis
Housing is surprisingly affordable for a major metro: median prices around $325,000 with many desirable neighborhoods offering homes for $300,000 to $450,000. The overall cost of living is at the national average. The affordability is offset by the 9.85% top income tax rate, which is the highest in the Midwest. For a household earning $100,000, the state income tax alone is roughly $6,500 to $7,500.
Very cold. January averages a high of 24°F with lows around 8°F. Wind chill values of minus 20 to minus 30 are common in winter. The city averages 54 inches of snow. Indoor skyways connect downtown buildings, creating a parallel indoor city. Residents adapt with winter gear, indoor activities, and ice fishing and cross-country skiing for the adventurous. Summer, in contrast, is warm and beautiful with long days.
Minnesota has four brackets: 5.35%, 6.80%, 7.85%, and 9.85%. The top rate of 9.85% applies to income above $183,340 for single filers. This is the fifth-highest top rate nationally and is the primary financial drawback of living in Minnesota. Clothing is exempt from the 7.875% sales tax, which provides some everyday savings.