Cost of Living in Minnesota

(Last Updated – September 4,2025)

Minnesota is one of the best-kept secrets in the U.S. It hasn’t experienced a huge population boom, but does have many attractive features that make it a great place to call home. It has a strong job market, with just a 3.2% unemployment rate that’s a full point lower than the national average. There’s also a healthy balance of big cities and big nature opportunities, not to mention multiple professional sports teams to cheer on from the stands.

So how does the average cost of living in Minnesota compare to the rest of the country? Here’s everything you need to know about living — and spending — in the North Star State.

What’s the Average Cost of Living in Minnesota?

Average Cost of Living in Minnesota: $56,489 per year

Minnesota ranks 18th in lowest cost of living in the U.S., according to the 2025 Cost of Living Index from the Missouri Economic Research and Information Center (MERIC). Its cost of living index number is 93.7, which puts it below the national baseline score of 100. It’s cheaper than some neighboring states like Wisconsin and Illinois, but still more expensive than others, such as Iowa, North Dakota, and South Dakota.

The average state resident spends $56,489 on personal expenditures each year, according to the Bureau of Economic Analysis. In other words, the average cost of living in Minnesota per month averages $4,707, or $18,829 for a family of four.

Here’s what the average yearly costs look like for common bills in Minnesota.

Category	Average Annual Per-Capita Cost in Minnesota
Housing and Utilities	$10,031
Health Care	$9,839
Food and Beverages (nonrestaurant)	$3,721
Gas and Energy Goods	$1,576
All Other Personal Expenditures	$31,321

Housing Costs in Minnesota

Median Housing Costs in Minnesota: $995 to $1,813 per month

Housing is more affordable in Minnesota compared to the rest of the country. As of August 2025, the state’s median home value is $351,614 according to Zillow, compared to $368,581 nationally.

Areas located near water are quite a bit more expensive, however. The median home value in Lake Shore, for instance, is $700,120 — roughly double Minnesota’s overall number. But that does mean you likely won’t need a jumbo loan due to the high cost of living, no matter where you settle down.

Here’s a snapshot of what monthly costs renters can expect to pay, according to the U.S. Census Bureau data.

•  Studio: $995

•  1 bedroom: $1,127

•  2 bedroom: $1,326

•  3 bedroom: $1,622

•  4 bedroom: $1,813

•  5 or more bedrooms: $1,682

•  Median gross rent: $1,264

Considering a specific area in Minnesota when buying your first home? Here are the median home values in some of the state’s largest cities, according to Zillow.

Minnesota Area	Average Home Value
Minneapolis	$325,531
Saint Paul	$288,019
Rochester	$327,857
Duluth	$267,995
Bloomington	$355,418
Brooklyn Park	$339,384
Woodbury	$462,382
Plymouth	$615,243
Lakeville	$481,079

These price ranges allow buyers to choose from several different types of home loans, like conventional and FHA. Starting out with the mortgage preapproval process can help you prepare for home shopping at the right price point in Minnesota.

Recommended: What Are the Different Types of Mortgage Loans?

Utility Costs in Minnesota

Average Utility Costs in Minnesota: $312.78

Utility costs are a must-have part of monthly expenses for one person. Here’s what you can expect to pay when you live in Minnesota.

Utility	Average Minnesota Bill
Electricity	$110.78
Natural Gas	$55
Cable & Internet	$113
Water	$34

Groceries & Food

Average Food & Beverage Costs in Minnesota: $310 per month

The Bureau of Economic Analysis estimates that food and beverage costs average $3,721 per year in Minnesota. So for your monthly budget, expect to spend around $310 per person, or $1,240 for a family of four.

How do grocery costs in Minnesota cities stack up against the country as a whole? The Council for Community and Economic Research’s Grocery Items Index sets a national baseline score of 100. Anything below that is under the national cost of living average, while higher numbers are above the national average.

Minnesota City	Grocery Items Index
Mankato	103.6
Minneapolis	102.6
St. Cloud	97.1
St. Paul	105.2

Transportation

Average Transportation Costs in Minnesota: $10,019 to $18,643 per year

Driving a vehicle is the easiest way to get around broader Minnesota, but you also have public transportation options in some areas. In Minneapolis-St. Paul, for instance, you can choose from METRO options like train and light rail.

To get a sense of how much transportation costs in Minnesota, check out this snapshot of different family structures and average annual costs, according to MIT’s Living Wage Calculator.

Family Makeup	Average Annual Transportation Cost
One adult, no children	$10,019
Two working adults, no children	$11,595
Two working adults, three children	$18,643

Health Care in Minnesota

Average Health Care Costs in Minnesota: $9,839 per person per year

Health care costs for Minnesota residents average just over $9,800 per year, according 2023 estimates from the Bureau of Economic Analysis. For a family of four, that amounts to $39,356 annually.

Minnesota is on par with health care costs in other states in the Plains regions. The two most expensive states in the area are North Dakota and South Dakota, both averaging more than $11,000 per person each year.

Child Care

Average Child Care Costs in Minnesota: $1,002 to $1,658 per child, per month

Child care costs can add a lot to your monthly budget. The amount you’ll spend on each child depends on their age as well as the type of classroom they’re in. Explore different averages in Minnesota to get a sense of what to expect using the data below from CostofChildCare.org.

Type of Child Care	Average Cost Per Month, Per Child
Infant Classroom	$1,658
Toddler Classroom	$1,190
Preschooler Classroom	$1,002
Home Based Family Child Care	$1,239

Taxes

Maximum Income Tax Rate in Minnesota: 9.85%

The highest-earning residents in Minnesota will pay 9.85% marginal tax rate in addition to federal taxes. Additionally, the state has a 1% high earners’ capital gains surtax, which applies to gains over $1 million.

These tax rates are much higher than Minnesota’s neighbors; the next closest tax rate is Wisconsin with 7.65%. South Dakota, on the other hand, has no state income tax at all.

Miscellaneous Costs

There’s plenty to do throughout the year in Minnesota. But what is the cost of living in Minnesota after your necessary expenses? Here are the average prices of some popular outings.

•  Minnesota Twins baseball game: Starting at $20

•  Cave tour at Forestville/Mystery Cave State Park: $15

•  Minneapolis Institute of Art: Free general admission

•  All-day kayak rental at Chain of Lakes: $80

Plus, there are plenty of parks and other outdoor excursions to enjoy at no cost.

How Much Money Do You Need to Live Comfortably in Minnesota?

Everyone has a different level of comfort when it comes to spending and saving. According to the U.S. News and World Report Affordability Ranking, Minnesota comes in 29th out of the 50 states for overall affordability. But it’s also listed as the 4th best state overall, and the 7th best state for opportunity, making it one of the best affordable places in the U.S.

MERIC’s cost of living data series also puts Minnesota below the national average, with a 93.7 cost of living index score. The nation as a whole is set at a score of 100, so things are cheaper in Minnesota compared to many other states.

What City Has the Lowest Cost of Living in Minnesota?

Here’s how the cost of living in Minnesota varies based on four well-known cities in the state: Mankato, Minneapolis, St. Cloud, and St. Paul.

Mankato

Located south of Minneapolis, Mankato is a large town with a big personality. It’s home to a number of colleges and universities, ensuring a lively atmosphere. In terms of cost of living, Mankato has an overall index score of 95.1 and a very affordable housing score of 79. Groceries, however, may feel a little more expensive, thanks to a higher food score of 103.6.

Minneapolis

Minneapolis is a large city that offers both indoor and outdoor fun. It has a number of lakes in the area, plus popular area attractions like the Mall of America. And you may even have some extra cash for shopping. Minneapolis has an overall cost of living of 93.6, and its housing score is 82.9.

St. Cloud

St. Cloud is a small city located in the center of Minnesota, with ice skating in the winter at the Lake George skating rink and lush landscape walks in the warmer months at the Munsinger/Clemens Gardens. Cost of living is below average across the board in St. Cloud, with scores of 97.6 overall, 97.1 for groceries, and 80.8 for housing.

St. Paul

St. Paul is a walkable city with tons of architectural charm. The overall cost of living score is 94, while housing is just 81.3. Groceries, however, score the highest out of the four cities listed here, at 105.2.

Helpful Resources for Future Minnesota Residents