Cost of Living in Minnesota 2026 — Housing, Income & Taxes

📊 Minnesota at a Glance — 2026

Cost of Living Index

101

US average = 100 · Near National Average

Median Household Income

$74,000

Source: U.S. Census Bureau ACS

Average 1BR Rent

$1,200/mo

Source: Zillow Observed Rent Index

State Income Tax

9.85%

Check official state rates

Average Home Price

$300,000

Source: Zillow Home Value Index

Salary Needed (30% rule)

$48,000

To keep housing under 30% of income

📈 Minnesota vs the National Average

Cost of Living

101

Minnesota runs 1% above the national average (index 101 vs. the U.S. baseline of 100). Minnesota's costs are moderate overall but its winters drive up utility costs meaningfully compared to warmer states. On the tax side, Minnesota applies a graduated income tax with one of the higher top rates in the Midwest.

💡 What Salary Do You Need in Minnesota?

Using the 50/30/20 budget rule, housing should cost no more than 30% of your gross income. With average rent at $1,200/month in Minnesota, you need roughly $48,000/year to live comfortably without being housing-cost-burdened.

Find out exactly how much you take home after Minnesota taxes

💰 Calculate Minnesota Take-Home Pay → 🏡 See How Much Home You Can Afford →

Is Minnesota expensive to live in?

Minnesota's cost of living index is 101, where 100 is the U.S. average — that's 1% above the national average. Minnesota's costs are moderate overall but its winters drive up utility costs meaningfully compared to warmer states. The biggest local industries are healthcare and medical device manufacturing (Mayo Clinic, Medtronic), and finance, centered around Minneapolis-St. Paul.

What is the average rent in Minnesota in 2026?

A 1-bedroom apartment in Minnesota averages $1,200/month as of 2026 (Zillow Observed Rent Index). That's set against a median household income of $74,000/year, so rent alone runs roughly 19% of the typical household's pre-tax income.

What salary do you need to live in Minnesota?

Following the standard 30%-of-income guideline for housing, you'd want roughly $48,000/year to cover Minnesota's average rent comfortably. That's a general rule of thumb, not a hard rule — your real number depends on debt, family size, and where in Minnesota you're looking. Our free paycheck calculator shows your actual take-home pay after Minnesota taxes.

Does Minnesota have a state income tax?

Minnesota applies a graduated income tax with one of the higher top rates in the Midwest. The listed rate is 9.85%. Use our free paycheck calculator to see exactly how that affects your specific take-home pay.

🔗 More Free Tools

💰 PayCalc Pro — See your take-home pay after Minnesota taxes 🏡 HomeBuy Calc — How much home can you afford in Minnesota? 📊 Compare All 50 States — Cost of Living by State 2026

Cost of Living in Minnesota 2026 — Full Guide

Minnesota's cost of living index sits at 101, meaning it runs 1% above the national average. Minnesota's costs are moderate overall but its winters drive up utility costs meaningfully compared to warmer states.

Minnesota's Economy

Minnesota's economy centers on healthcare and medical device manufacturing (Mayo Clinic, Medtronic), and finance, with most of that activity concentrated around Minneapolis-St. Paul. That local economic base shapes everything from job availability to how quickly housing supply responds to demand — a state built around a few large employers behaves very differently, cost-wise, than one with a diversified metro economy.

Housing Costs in Minnesota

The average rent for a 1-bedroom apartment in Minnesota is approximately $1,200 per month in 2026. Average home values sit around $300,000. Minnesota's costs are moderate overall but its winters drive up utility costs meaningfully compared to warmer states.

Taxes in Minnesota

Minnesota applies a graduated income tax with one of the higher top rates in the Midwest. The current listed rate is 9.85%. Combined with federal taxes, this determines your real take-home pay — use our free paycheck calculator to see the exact impact on your specific salary rather than relying on a statewide average.

Data Sources

Cost of living index data is based on the Council for Community and Economic Research (C2ER) methodology. Income figures are from the U.S. Census Bureau American Community Survey (ACS). Rent data is sourced from the Zillow Observed Rent Index. All figures represent approximations and should be verified with official sources for financial planning.

All data is for informational purposes only and is not financial or legal advice.

Cost of Living inMinnesota 2026