Minnesota · Population 426,845 · Updated March 2026
How far your income goes in Minneapolis
State-level tax rates that affect your costs
Minneapolis has a cost of living close to the national average, offering a balanced mix of expenses and amenities. With a cost index of 102 (where 100 equals the national median), Minneapolis residents can expect to pay median rent of $1,329/month while earning a median household income of $80,269/year.
The median home value in Minneapolis, MN is $345,600, with typical monthly owner costs around $1,513 including mortgage, insurance, and taxes. The median rent-to-income ratio of 19.9% means housing is relatively affordable here — well below the 30% threshold that HUD considers cost-burdened.
Minnesota's top income tax rate of 9.85% is among the highest in the nation, adding to the overall cost burden. Combined with a 6.875% sales tax rate and 1.11% effective property tax rate, the overall tax environment is a factor in the total cost of living in Minneapolis.
Common questions about living costs in Minneapolis
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