Minnesota Cost of Living Calculator 2026

Compare cost of living in Minnesota to other US states and cities. See equivalent salary needed when relocating.

By Konstantin Iakovlev · Updated October 19, 2026 · Methodology

Current Annual Salary

Current City

Target City

Equivalent Salary Needed

$103,603.60

Difference

+$3,603.60

Cost Difference

+3.60%

Cost of Living Comparison

Austin, TX Index	111
Minneapolis, MN Index	115
National Average	100
Your Current Salary	$100,000.00
Equivalent in Minneapolis, MN	$103,603.60
You would need more	$3,603.60

Breakdown by Category (Annual)

Housing	+8.33%
Current (Austin, TX)	$40,000.00
Target (Minneapolis, MN)	$43,333.33
Food & Groceries	+2.00%
Current (Austin, TX)	$15,000.00
Target (Minneapolis, MN)	$15,300.00
Transportation	+5.00%
Current (Austin, TX)	$15,000.00
Target (Minneapolis, MN)	$15,750.00
Healthcare	+2.86%
Current (Austin, TX)	$10,000.00
Target (Minneapolis, MN)	$10,285.71

Cost of living indices are approximate and based on aggregate data. Individual expenses may vary significantly. Housing costs tend to have the largest impact when moving between cities.

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

Minnesota Cost of Living Overview

Understanding the cost of living in Minnesota means looking at taxes, housing, and everyday expenses together. Minnesota levies a progressive income tax, which directly impacts take-home pay. The average property tax rate is 0.99%, and the state sales tax rate is 6.88%.

A Minnesota household budget is shaped by a stack of taxes plus housing. The income tax is graduated and reaches 9.85% at the top, sales tax sits at 6.88% with groceries and clothing exempt, and property tax averages about 0.99% of home value. None of these is the highest in the nation on its own, but together they make Minnesota a moderate-to-higher tax environment that bites more at upper incomes than at the bottom.

Housing is the other big lever, and it splits sharply by location. The Minneapolis-St. Paul metro carries higher home prices and rents than much of greater Minnesota, where a similar salary stretches further. When comparing two job offers in different cities, weigh the gross pay against local rents or home prices and the local tax mix, since the same paycheck delivers very different real spending power in downtown Minneapolis versus a smaller outstate town.

Minnesota Cost Snapshot (2026)

Avg. Property Tax Rate	0.99%
State Sales Tax Rate	6.88%
Minimum Wage	$11.41/hr
State Income Tax	Progressive (up to 9.85%)
State Disability Insurance (SDI)	No
Estate / Inheritance Tax	Yes

City indexes (U.S. average = 100) are planning estimates on one scale. The 29 cities added in August 2026 were reconciled from BestPlaces city pages, the Payscale and RentCafe cost-of-living calculators (both built on the C2ER Cost of Living Index) and the MERIC state index for Q1 2026; the original 30 large metros date from April 2026 and have not been re-checked since. Local rents and home prices can differ a lot within a metro, and the equivalent salary does not account for income taxes.

Official Sources:

Minnesota Cost of Living FAQ

How do Minnesota's taxes affect the cost of living?

Minnesota combines a graduated income tax topping out at 9.85%, a 6.88% sales tax, and roughly 0.99% average property tax. The income tax weighs most on higher earners, while the sales tax is softened for households because groceries and clothing are exempt, so the overall tax load depends heavily on your income level and spending.

Is it cheaper to live in greater Minnesota than the Twin Cities?

Generally yes on housing. The Minneapolis-St. Paul metro tends to have higher home prices and rents than smaller outstate communities, so a given salary covers more in greater Minnesota. State income and sales taxes apply statewide, so the main cost-of-living gap between regions is usually housing and local levies.

How should I compare two salaries in different Minnesota cities?

Look past gross pay to net pay and local housing costs. Subtract estimated federal and Minnesota income tax, then weigh the remainder against local rent or mortgage and any city-specific taxes or higher local minimum wages. A higher nominal salary in the Twin Cities may not beat a smaller one in a lower-cost outstate city once housing is counted.

Does Minnesota's sales tax structure ease everyday costs?

It helps with essentials. Because Minnesota exempts most unprepared groceries, prescription drugs, and clothing, routine necessity spending escapes the 6.88% rate even though dining out and discretionary goods are taxed. That structure lightens the sales tax burden on lower- and middle-income households relative to states that tax food and clothing.