Cost of Living for Minnesota (2026)
Minnesota (MN) Key Facts
Cost of Living Index
97
National Average Index
100
Median Household Income
$77,000
Approximate Median Rent (1 B R)
$1,050/month
State Income Tax Rate
9.85%
How This Calculator Works in Minnesota
This cost of living calculator helps you compare salaries between Minnesota and other states or cities by adjusting for purchasing power differences. Enter a salary and a target location to see what equivalent income you would need. It uses Minnesota's cost of living index of 97 relative to the national average of 100 to provide an accurate comparison.
Minnesota Overview
Minnesota has a cost of living index of 97, where 100 represents the national average. The Minneapolis-St. Paul metro area drives Minnesota's cost of living above the national average, especially in housing. Greater Minnesota is generally affordable. The median household income is $77,000, which has a purchasing power equivalent of approximately $79,381 in an average-cost location.
How Minnesota Compares
Minnesota's cost of living index of 97 compares to Wisconsin's 93 and Iowa's 89. Residents in Minnesota benefit from lower costs compared to the national average, meaning salaries stretch further here. The most affordable states like Mississippi (84) cost roughly 15% less than Minnesota, while the most expensive like Hawaii (192) cost 98% more.
| State | Top Rate | Notes |
|---|---|---|
| Wisconsin | COL Index: 93 | Wisconsin has a cost of living index of 93 and a median household income of $64,000. It is more affordable than Minnesota. |
| Iowa | COL Index: 89 | Iowa has a cost of living index of 89 and a median household income of $62,000. It is more affordable than Minnesota. |
| North Dakota | COL Index: 94 | North Dakota has a cost of living index of 94 and a median household income of $65,000. It is more affordable than Minnesota. |
The national average cost of living index is 100. Minnesota's index of 97 is near the national average. States like Mississippi (84) and West Virginia (84) have the lowest cost of living, while Hawaii (192) and DC (148) have the highest. Minnesota's median household income of $77,000 should be evaluated alongside its cost of living to understand real purchasing power.
Tips for Minnesota Residents
- 1The Minneapolis-St. Paul metro area drives Minnesota's cost of living above the national average, especially in housing. Greater Minnesota is generally affordable.
- 2Minnesota's median household income of $77,000 has a real purchasing power of about $79,381 when adjusted to the national average. Compare this figure, not the raw salary, when evaluating cross-state moves or job offers.
- 3Minnesota's top state income tax rate of 9.85% further reduces purchasing power beyond what the cost of living index alone shows. Factor in taxes when making state-to-state comparisons.
- 4When comparing job offers between states, adjust salaries by the cost of living index. A $60,000 salary in a state with an index of 90 provides more purchasing power than $70,000 in a state with an index above 105.
- 5Look beyond the state average — costs can vary dramatically within Minnesota between metro areas, suburbs, and rural communities. Research the specific city or county where you would live.