Cost of Living in Minnesota (MN)
Compare costs across 3 Minnesota cities. From home services to salaries, see how MN stacks up against the national average.
3
Cities
101
Avg Cost Index
$55K
Avg Income
Direct Answer
Minnesota's average cost index is 101, which is near the national baseline of 100. Duluth is the most affordable tracked city in MN at index 96, while Minneapolis is the most expensive at index 106.
The gap between the cheapest and most expensive tracked cities is 10 index points, so state-level averages should be used as a map, not a final budget.
State cost overviewBLS, Census, HUD inputsLast verified May 2026
Minnesota Highlights: Most affordable city: Duluth (index 96). Most expensive: Minneapolis (index 106). The gap between cheapest and most expensive is 10 index points.
What Drives the Statewide Cost Picture?
Average index
101/100
Minnesota is near the national cost baseline across tracked cities.
Cheapest city
Duluth
Duluth has a cost index of 96.
Most expensive
Minneapolis
Minneapolis has a cost index of 106.
Income average
$55K
Average median household income across 3 tracked MN cities.
Cheapest and Most Expensive Cities in Minnesota
| City | Population | Cost Index | Median Income | Tier |
|---|---|---|---|---|
| Minneapolis | 430K | 106 | $63K | large |
| St. Paul | 312K | 100 | $56K | mid |
| Duluth | 91K | 96 | $47K | small |
Minnesota State Taxes (2026)
Headline tax rates that affect your real take-home pay and total cost of living in Minnesota.
State Income Tax
5.35-9.85%
progressive system
Combined Sales Tax
8.04%
6.875% state + 1.16% avg local
Property Tax (Effective)
1.05%
~$3,150/yr on a $300K home
Income tax: Minnesota uses a progressive income tax at 5.35-9.85%. Estate tax applies at the state level. Estimate your take-home pay
State Planning Checklist
- Start with Duluth if the priority is lowest recurring cost inside Minnesota.
- Compare Minneapolis against salary and tax advantages before assuming the higher-cost city is worse.
- Use city pages for rent, salary, insurance, and local service costs before making a relocation decision.