Is your salary good in Minneapolis?
↻ Updated 2026Minneapolis, MN has a cost-of-living index of 105(US average = 100), so it's about 5% more expensive than the typical US city. Add your household below to see what it really costs to live here — and whether your income is enough.
Comfortable — living costs are about 43% of your gross income in Minneapolis.
What costs more in Minneapolis?
Each category indexed to the US average (100). Housing is what makes a city expensive — everyday costs vary far less.
Rents and home prices — the category that drives almost all of the gap between metros.
Groceries and other goods, which vary far less between metros than housing.
Electricity, gas, water and other utility services.
Transportation, health care, dining and the rest of everyday services.
These are the U.S. Bureau of Economic Analysis Regional Price Parities for the Minneapolis metro area (2024) — measured government figures, not estimates, indexed so the US average is 100. They cover the metro as a whole; actual costs still vary by neighbourhood, household size and lifestyle. See sources below.
The cost of living in Minneapolis, at a glance
Minneapolis runs about 5% above the U.S. average in overall prices, according to BEA Regional Price Parity data (2024 vintage, all-items index of 105). Housing is the clearest driver of that premium, priced roughly 12% above the national average, while everyday goods run about 3% higher, other services about 4% higher, and utilities actually come in about 7% below the U.S. average. For most workers considering the city, the practical takeaway is that a household earning close to or above the metro's median income of roughly $80,000 can live comfortably, but a genuinely comfortable single-adult budget by 50/30/20 standards is closer to $90,000 gross (pre-tax), per a 2026 SmartAsset analysis.
Minnesota's graduated state income tax, topping out at 9.85%, is one of the highest in the country and takes a real bite out of paychecks, which matters more here than in states with flat or no income tax. Renters will find one-bedroom apartments generally listed in the roughly $1,100 to $1,500 range depending on neighborhood and source, while buyers face a median home price in approximately the $340,000 to $385,000 range as of 2025-2026, up modestly year over year. Combined, the picture is a moderately-priced housing market and a mixed cost-of-living profile, offset by a meaningfully higher state tax burden than many peer metros.
Is your salary good in Minneapolis?
Median household income in the city of Minneapolis was about $80,846 in 2024 (U.S. Census Bureau), while some analyses put the broader metro figure closer to $76,000 to $87,000 depending on the geography measured. A salary at or above that level generally covers a one-bedroom rental, a car payment, groceries, and modest savings for a single person, though it leaves less room for discretionary spending than the national median would in a lower-cost metro.
Because Minnesota's state income tax reaches up to 9.85% at the top bracket, take-home pay on a given gross salary is noticeably lower here than in no-income-tax states like Texas or Florida. Workers evaluating an offer should compare the after-tax number, not just the headline figure, when weighing a move to Minneapolis.
Housing — renting and buying
One-bedroom rents in Minneapolis are reported anywhere from about $1,090 to $1,530 a month across different 2025-2026 rental trackers, with most mainstream estimates landing in the $1,250 to $1,400 range; downtown and North Loop units generally command more, while outer neighborhoods run cheaper. Two-bedroom units typically add a few hundred dollars a month on top of one-bedroom pricing.
For buyers, the median home sale price in the Minneapolis area has hovered approximately between $340,000 and $385,000 through 2025 into 2026, depending on the exact geography and month measured — Redfin's tracked median runs closer to the upper-middle of that band around $365,000, while Zillow's home value index sits nearer the lower end around $339,000 — with year-over-year changes modest and mixed across sources. That tracks with the BEA data showing local housing costs running about 12% above the national average, making Minneapolis a moderately priced market by the standards of large metros, but pricier than many smaller Midwest cities.
Everyday costs
Grocery and general goods prices in Minneapolis run about 3% above the U.S. average per BEA regional price data, a modest premium rather than a major cost driver. Utilities are a bright spot: at roughly 7% below the national average, heating, electricity, and water costs help offset the housing premium, notable in a cold-winter climate where heating bills matter.
Other services — including things like healthcare, personal care, and recreation — run about 4% above the national average. Transportation costs are not broken out in the BEA parity figures but are generally considered comparable to or slightly below national averages for a car-dependent metro, since Minneapolis lacks the toll roads and congestion pricing found in coastal cities.
Taxes in Minneapolis
Minnesota applies a graduated state income tax with four brackets running from 5.35% up to a top marginal rate of 9.85%, one of the higher top rates among U.S. states (Tax Foundation, 2026). There is no additional local income tax within Minneapolis itself, so total income tax exposure is set at the state level.
The state sales tax base rate is 6.875%, but with Hennepin County and Minneapolis local additions (a county transit tax, a city sales tax, and a special downtown taxing district), the combined rate shoppers pay in most of the city works out to approximately 9.025% as of 2026. Property taxes are more moderate: Minnesota's average effective property tax rate is roughly 1.0%, near the national middle and lower than neighboring Illinois or Wisconsin.
A living wage vs a comfortable salary
The MIT Living Wage Calculator puts the current bare-necessities living wage for a single adult in Hennepin County at about $51,000 a year (roughly $24.50/hour), covering essentials with no savings or discretionary spending. A more comfortable lifestyle, per the 2026 SmartAsset 50/30/20 study, requires a gross (pre-tax) income of roughly $90,000 to $94,000 a year for a single adult in the Minneapolis-St. Paul metro — that figure is a pre-tax salary target, not an after-tax take-home amount.
For a family of four with two working adults and two children, MIT's current bare-necessities living wage estimate is around $144,000 combined household income; if only one adult works, that bare-necessities figure rises to roughly $90,000 for that single earner alone. Comfortable-lifestyle estimates for a family of four run well above the bare-necessities figures, with some 2024-2025 local news coverage citing family comfortable-income targets well into six figures.
Who Minneapolis suits
Minneapolis tends to work well for dual-income households, remote workers relocating from higher-cost coastal metros, and professionals in fields like healthcare, finance, or the many Fortune 500 companies headquartered in the Twin Cities, since salaries in those sectors often clear the comfortable-income threshold even after the state's above-average income tax. Retirees with paid-off homes or steady pensions can also do well, benefiting from the below-average utility costs and moderate property tax rate, though Minnesota does partially tax Social Security income for higher earners.
It is harder on single earners near the metro median income, especially renters facing the housing premium, and on anyone particularly sensitive to state income tax, since the 9.85% top rate applies well before ultra-high income levels. New grads and those in lower-paying service or hospitality jobs will find the gap between typical entry-level pay and the roughly $90,000 gross comfortable-income benchmark notably wide.
How Minneapolis compares
Against peer Midwest metros like Kansas City and Milwaukee, Minneapolis generally runs somewhat more expensive on housing but offers higher median incomes and a deeper job market, particularly in corporate headquarters and healthcare. Compared with Denver, Minneapolis housing costs and rents are meaningfully lower, though Colorado's flat income tax rate is lower than Minnesota's graduated top rate.
Relative to no-income-tax metros such as Austin or Nashville, Minneapolis loses ground on take-home pay due to Minnesota's income tax, but it can offset some of that with a lower overall cost-of-living index and more moderate home prices than those fast-growing Sun Belt markets have seen in recent years.
Frequently asked questions
Is $75,000 a good salary in Minneapolis?
A $75,000 salary in Minneapolis sits close to the city's median household income of roughly $81,000 (2024, Census), so it is workable for a single person or a dual-income couple sharing costs, though it falls short of the roughly $90,000-plus gross income that the 2026 SmartAsset study estimates a single adult needs under a 50/30/20 budget in the metro. It comfortably clears the MIT Living Wage Calculator's current bare-necessities threshold of about $51,000 for one adult in Hennepin County. For a single renter, $75,000 generally covers a one-bedroom apartment, transportation, and typical bills with some room for savings, but discretionary spending will be tighter than in lower-cost Midwest metros.
How much do you need to live comfortably in Minneapolis?
Estimates vary by methodology, but the 2026 SmartAsset analysis using the 50/30/20 rule puts the comfortable-living threshold for a single adult in the Minneapolis-St. Paul area at roughly $90,000 to $94,000 a year in gross, pre-tax income. That is notably higher than the MIT Living Wage Calculator's current bare-necessities figure of about $51,000 for one adult in Hennepin County, which covers essentials only with no savings or discretionary spending. For a family of two working adults and two children, MIT estimates a bare-necessities living wage near $144,000 combined, while comfortable-lifestyle estimates for a similar household run considerably higher.
Does Minnesota have state income tax?
Yes. Minnesota levies a graduated state income tax with four brackets ranging from 5.35% to a top marginal rate of 9.85%, one of the higher top rates in the country (Tax Foundation, 2026). The state also charges a 6.875% base sales tax, and with local additions in Minneapolis and Hennepin County, shoppers pay a combined rate of approximately 9.025% at checkout in most of the city as of 2026. There is no separate local income tax for Minneapolis residents beyond the state rate.
How much does a one-bedroom apartment cost in Minneapolis?
Estimates for a one-bedroom apartment in Minneapolis in 2025-2026 range roughly from about $1,090 to $1,530 a month depending on the data source and neighborhood, with most mid-market listing sites clustering between $1,250 and $1,400. Downtown and popular neighborhoods like the North Loop tend to run toward the higher end of that range, while outer neighborhoods are cheaper. Several rental-market trackers note Minneapolis rents run below the national average, consistent with the BEA's regional price data showing overall costs only modestly above the U.S. average while housing costs run higher than the all-items index.
- ·U.S. Bureau of Economic Analysis — Regional Price Parities by metro — All-items and category price levels vs the US average, 2024
- ·BEA Regional Price Parities by State and Metro Area, 2024 — All-items 105, housing 112, goods 103, other services 104, utilities 93 for Minneapolis-St. Paul
- ·SmartAsset — Salary Needed to Live Comfortably in U.S. Cities, 2026 Study — 50/30/20 gross-income comfortable-salary benchmark for Minneapolis-St. Paul
- ·MIT Living Wage Calculator — Hennepin County, Minnesota — Current bare-necessities living wage for single adults and families
- ·SalesTaxHandbook — Minneapolis, Minnesota Sales Tax Rate 2026 — Combined state, county, city and special-district rate of 9.025%
- ·Tax Foundation — State Individual Income Tax Rates, 2026 — Minnesota's graduated bracket structure and 9.85% top marginal rate
- ·Zillow Home Value Index and Redfin Data Center — Minneapolis, MN — Basis for the corrected ~$340,000-$385,000 median home price range
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