Cost of Living in Minnesota
Things cost about the same here as the national average.
What Things Cost in Minnesota
Compared to the US national average
See raw index numbers
US national average = 100. Source: BEA Regional Price Parities 2023.
Minnesota is a high-tax, high-services state that somehow manages to maintain a cost of living right at the national average. The math works because housing is slightly below average despite the Twin Cities being a major metro, healthcare is strong (Mayo Clinic is in Rochester), and the economy is diversified across Fortune 500 companies (Target, UnitedHealth, 3M, Best Buy, General Mills). Minneapolis-St. Paul consistently ranks among the most livable metros in America, with excellent schools, extensive parks, strong cultural institutions, and a food scene that has moved well beyond hotdish. The catch: the income tax is among the highest in the nation at up to 9.85%, and winter is no joke.
Minnesota at a Glance
Taxes in Minnesota
Minnesota's state income tax tops out at Up to 9.85%. The combined sales tax averages 6.875%. Property taxes run about 1.02% of home value, which on a $308,000 median home means roughly $3,142/year.
Cities in Minnesota
Ranked from least to most expensive. Index 100 = national average.
Explore Minnesota
FAQ About Minnesota
The cost of living is almost exactly at the national average, which surprises people given the high income tax. Housing in the Twin Cities is moderate for a major metro, with median prices around $340,000. Where Minnesota feels expensive is on your tax return: the 9.85% top income tax rate is among the highest nationally and applies to income above $183,340 for single filers. Groceries and healthcare are near average.
Minnesota has four brackets: 5.35%, 6.80%, 7.85%, and 9.85%. The top rate applies to single filers earning above $183,340. This is the fifth-highest top rate in the country. Combined with a 6.875% sales tax, the overall tax burden is high. The state does exempt clothing from sales tax and offers Social Security exemptions for most middle-income retirees.
Very cold. Minneapolis averages a high of 24°F in January, with overnight lows commonly below zero. Wind chill can push apparent temperatures to minus 30 or colder. Lakes freeze solid for months, and the heating season runs roughly from October through April. Residents adapt with indoor skyway systems connecting downtown buildings, a robust winter sports culture, and the knowledge that Minnesota summers, warm and long-lit, are genuinely beautiful.