Minnesota, known as the "Land of 10,000 Lakes", is a moderate-cost Midwest state with high taxes but strong public services. Here is everything you need to know about the cost of living in the Land of 10,000 Lakes — from housing and groceries to taxes, utilities, childcare, and what salary you actually need.
Here is what a typical month costs in Minnesota for a single person earning the median income of $77,700/year:
Each category shows how Minnesota compares to the national average. Green means cheaper, yellow means similar, orange/red means more expensive.
Adjust your salary to see a detailed monthly budget breakdown for living in Minnesota.
Select a state to see how much salary you would need there to maintain the same lifestyle you have in Minnesota.
The most popular cities for residents and newcomers in Minnesota:
Housing is the single biggest expense in Minnesota, as it is everywhere. The median home price in Minnesota is $315,000, and the median rent for a one-bedroom apartment is $1,100/month. With a housing cost index of 95, Minnesota housing is 5% cheaper than the national average.
Housing in Minnesota is a genuine advantage. The low cost of housing frees up income for savings, investments, and discretionary spending that residents of expensive states simply cannot afford.
Minnesota has a state income tax rate of 9.85%. On the median household income of $77,700, you will pay approximately $7,653/year in state income tax ($638/month). This is one of the higher rates nationally and significantly impacts disposable income.
The average single person in Minnesota spends approximately $410/month on groceries. A family of four can expect to spend $1,025-$1,230/month. The food cost index of 99 means groceries in Minnesota are 1% below the national average.
Gas prices in Minnesota average $3.2/gallon. For the average commuter driving 15,000 miles/year at 25 MPG, that is roughly $1,920/year in fuel costs.
Minnesota healthcare costs are 2% above the national average (index: 102). The average annual healthcare cost per person in Minnesota is approximately $6,120 including premiums and out-of-pocket expenses. Employer-sponsored health insurance covers the majority of working adults.
Infant daycare in Minnesota averages $1,200/month ($14,400/year). This is a significant expense that rivals rent in many areas. Many families in Minnesota find that one parent staying home is more cost-effective when two or more children need daycare.
Minnesota offers a solid balance of cost, opportunity, and quality of life. With costs near the national average, you get access to growing job markets in Minneapolis and Saint Paul, and a cost of living that leaves room for saving and investing.
See all Minnesota financial calculators:
Minnesota (MN) has a cost of living index of 97, meaning it is 3% cheaper than the US average. Housing is the biggest factor with an index of 95. The median rent is $1,100/month and the median home price is $315,000. Minnesota ranks #28 out of 50 states for affordability (1 = cheapest).
For a single person, a comfortable salary in Minnesota is approximately $101,010/year ($8,418/month). For a family of four, aim for $170,940/year. This covers housing at 30% of income, groceries ($410/mo), transportation, healthcare, and a 15% savings rate. The median household income in Minnesota is $77,700.
The median rent for a one-bedroom apartment in Minnesota is approximately $1,100/month. A two-bedroom averages $1,485/month. Rent varies significantly by city: Minneapolis, Saint Paul, Rochester are the most popular metro areas. Housing in Minnesota is affordable compared to the national average.
Minnesota offers a balanced lifestyle with costs near the national average. Growing job markets in Minneapolis and Saint Paul attract new residents.
The most affordable areas in Minnesota are typically smaller cities and rural areas away from the major metros. Within Minnesota, costs can vary 20-40% between the most expensive city (Minneapolis metro) and more affordable areas. Bloomington and Duluth tend to offer lower costs while still providing good amenities and job opportunities.
The average monthly grocery bill in Minnesota for a single person is approximately $410 ($1,025 for a family of four). Minnesota food costs are 1% below the national average. Shopping at Walmart, Aldi, and local discount stores can reduce this by 15-25%.
The average monthly electric bill in Minnesota is approximately $120. Total utilities (electric, gas, water, internet) average $264/month. Minnesota utilities are 2% below the national average. Utility costs are manageable for most households.
Minnesota has a state income tax rate of 9.85%. On the median household income of $77,700, that is approximately $7,653/year in state income tax. This is among the highest in the nation.