United States
Cost of living in Minnesota
Cost of living in Minnesota measures 98.6, placing it about 1 percent below the US average of 100 and ranking 22nd nationally. Minnesota's most prominent financial feature is its progressive income tax, which reaches a top rate of 9.85 percent on high earners, one of the highest top marginal rates in the country. The standard deduction for single filers is $14,950. The state also levies a sales tax of 6.875 percent, with local additions in many jurisdictions. For households with incomes in the top bracket, the income tax load is substantial, though the broader tax-and-services package funds among the best-ranked public schools and public infrastructure in the nation. At prices just below the national average, Minnesota delivers more government services per dollar of cost than most states at a comparable price level. The Twin Cities metro of Minneapolis and St. Paul concentrates most economic activity and runs somewhat above the statewide cost average.
Price level
98.6
US = 100
National rank
22nd
of 51, dearest first
Income tax
9.85%
top rate
Sales tax
6.875%
state base rate
What your salary is worth in Minnesota
Because prices here sit at 98.6 against the national 100, the same paycheck stretches differently than it would elsewhere. These figures hold buying power constant: the salary listed is what you would need in Minnesota to live as you would on the reference amount in another place.
| Same lifestyle as | $60,000 | $100,000 |
|---|---|---|
| US average | $59,160 | $98,600 |
| California (dearest) | $53,442 | $89,070 |
| Arkansas (cheapest) | $68,078 | $113,464 |
Compare Minnesota with anywhere in the US
To live the same in California you need
$78,590
to match $70,000 in Minnesota
Price level, US = 100
The equivalent salary keeps your purchasing power constant: it is your pay scaled by the ratio of the two price levels. Regional Price Parities measure what a fixed basket of goods and services costs locally. Source: U.S. Bureau of Economic Analysis, 2024.
Minnesota in context
Minnesota's cost profile is shaped heavily by the Twin Cities metro, where housing, food, and services cost more than in the rural or small-city areas that make up most of the state's geography. Outside the metro, communities in the Iron Range, the southeastern river valleys, and the border towns along the Dakotas remain considerably more affordable. The high top income tax rate affects a relatively small share of residents but draws attention from earners who compare Minnesota with neighboring Wisconsin or the Dakotas, which impose lower rates. Sales tax at 6.875 percent applies broadly, though groceries and clothing are exempt from state sales tax, a meaningful carve-out for household budgets. For families with children, strong public school funding and extensive park infrastructure can offset some of the tax costs on a value basis. Minnesota suits households that prioritize public amenities and can accommodate elevated taxes on higher incomes.
The closest state above Minnesota on price is Utah at 98.9. Just below sits Vermont at 98.
Frequently asked questions
Is Minnesota expensive to live in?
Minnesota sits at a price level of 98.6 where the US average is 100, so a typical basket of goods and services costs about 1% less than the national norm. That ranks it 22nd most expensive of 51 states. Housing is usually the largest single driver of the gap.
What salary do you need in Minnesota?
To match the buying power of $60,000 earned at the US average, you would need about $59,160 in Minnesota. The figure scales with the price level: a place dearer than average needs more, a cheaper one needs less. Your own number also depends on housing choice and household size.
How much tax does Minnesota charge?
Minnesota applies a top state income-tax rate of 9.85% and a base state sales tax of 6.875%. Four-bracket progressive for 2025 (single thresholds). Single standard deduction $14,950. State sales tax 6.875%; local taxes add more. Local jurisdictions can add their own sales tax on top.
Cost of living in other states
Price levels are Regional Price Parities from the U.S. Bureau of Economic Analysis, Regional Price Parities (SARPP, MARPP), 2024 (public domain). State tax figures are the latest published rates from state revenue departments. All figures are estimates for general comparison and not financial advice; your own costs depend on housing, household size and lifestyle.