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.
Is Minnesota Affordable?
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.
What Drives the Statewide Cost Picture?
Minnesota is near the national cost baseline across tracked cities.
Duluth has a cost index of 96.
Minneapolis has a cost index of 106.
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 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.
Cost by Category Across Minnesota
Business Startup Costs
Legal Services
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Frequently Asked Questions: Minnesota Cost of Living
What is the cost of living in Minnesota?
Minnesota's average cost-of-living index is 101, which is 1% above the U.S. baseline of 100. Across 3 tracked cities, costs span from index 96 in Duluth to 106 in Minneapolis.
What is the cheapest city to live in Minnesota?
Duluth is the most affordable tracked city in Minnesota, with a cost index of 96 — roughly 4% below the national average.
What is the most expensive city in Minnesota?
Minneapolis is the most expensive tracked city in Minnesota, at a cost index of 106. The gap between Duluth and Minneapolis is 10 index points, so always budget at the city level.
What is the average household income in Minnesota?
The average median household income across 3 tracked Minnesota cities is about $55,373 per year.
Does Minnesota have a state income tax?
Yes. Minnesota levies a progressive state income tax at 5.35-9.85%, which affects your real take-home pay.
How much is sales tax in Minnesota?
The combined sales tax in Minnesota averages 8.04% — 6.875% at the state level plus 1.16% in average local tax.