Cost of Living in Minnesota
The cost of living in Minnesota depends on what you need. Housing, utilities, transportation, healthcare, food, and taxes all add up differently for everyone. To help you figure it out, we’ve looked at what locals spend each month or year.
Living in a city like Minneapolis? Expect higher rent or home prices. Looking at smaller towns or rural areas? It’s usually more affordable. We’ll also compare Minnesota’s costs to those of other states so you know what’s reasonable.
Whether you’re budgeting for a single person or a family, thinking about childcare, or planning for taxes, we’ll walk you through what to expect.
What Is the Average Cost of Living in Minnesota?
The average cost of living in Minnesota is estimated at around $45,000 annually for a household, which breaks down to approximately $3,750 per month. Key expenses include housing, food, healthcare, transportation, and taxes. Family size plays a significant role, as larger families typically have higher expenses.
Housing Costs
Housing is often the biggest expense for most people. Whether you’re renting or buying, costs vary widely depending on where you live.
Renting Costs in Minnesota
Renting in Minnesota can get pricey, especially in cities like Minneapolis or St. Paul, where a one-bedroom apartment downtown costs about $1,200 a month. If you look at smaller cities like Duluth or Rochester, rents drop to around $900. For even more savings, head to rural areas—some homes go for under $700 a month.
Home Prices in Minnesota
The average cost of living in Minnesota per month for a family or individual includes buying a home, with the average cost around $320,000. In cities like St. Paul, prices are higher, averaging $375,000.
If you explore smaller towns or rural areas, homes can cost as little as $250,000. First-time buyers should also plan for extra expenses like closing fees (about 2–5% of the price) and inspections.
Cost of housing across Minnesota cities:
| City | Housing Costs |
|---|---|
| Minneapolis | $1,500 |
| St. Paul | $1,400 |
| Duluth | $1,200 |
| Rochester | $1,300 |
| Bloomington | $1,450 |
Affordable Neighborhoods
If you want a good balance of affordable living and job opportunities, cities like Mankato or Faribault are great choices. Suburbs like Maple Grove or Woodbury are more expensive but offer excellent schools and strong community features.
Utilities and Essential Services
Utility costs in Minnesota generally depend on your location and how big your household is.
Monthly Utility Bills
Monthly utility bills for most homes, including electricity, water, and heating, usually range from $100 to $150. During Minnesota’s cold winters, heating costs can climb higher, with some families spending $200 or more.
Internet and Cable
Basic high-speed internet in Minnesota starts at about $50 a month. Premium options can go over $100. If you add cable TV, the total can reach $150 or more. For businesses needing faster speeds, plans typically begin at $200.
Waste and Recycling Services
Most people in Minnesota spend around $20 a month on garbage and recycling services. These fees are included in local taxes in some areas, so it’s a good idea to check with your city or county.
Cost of utilities across Minnesota cities:
| City | Utilities & Essential Services |
|---|---|
| Minneapolis | $200 |
| St. Paul | $190 |
| Duluth | $180 |
| Rochester | $185 |
| Bloomington | $195 |
Transportation Expenses
Public transit is a great option in cities but isn’t widely available in rural Minnesota. In smaller towns, owning a car is usually a must. You’ll plan for expenses like gas, insurance, and maintenance with public transportation.
Public Transportation Costs
Public transit in cities like Minneapolis and St. Paul is both reliable and affordable. A monthly pass for unlimited bus and light rail rides costs around $80, making it a budget-friendly option for commuters.
Owning a Car
Owning a car comes with more expenses than just fuel. Gas prices in Minnesota average around $3.50 per gallon. Annual insurance premiums range from $800 to $1,200, depending on your coverage and driving history. You’ll also need to budget for maintenance, like $50 for oil changes and costs for tire replacements.
Transportation expenses across Minnesota cities:
| City | Transportation Expenses |
|---|---|
| Minneapolis | $150 |
| St. Paul | $140 |
| Duluth | $130 |
| Rochester | $135 |
| Bloomington | $145 |
Food and Grocery Prices
The average cost of living in Minnesota per month for a single person includes groceries, which typically cost around $300 per month. For a family of four, the costs are about $900 per month.
- Milk (1 gallon): $3.50
- Eggs (dozen): $2.80
- Bread (white, pan, per pound): $1.94
- Chicken (fresh, whole, per pound): $1.80
- Ground Beef (100% beef per pound): $5.03
- Rice (white, long grain, uncooked, per pound): $0.92
- Flour (white, all-purpose, per pound): $0.57
- Apples (per pound): $1.50
- Bananas (per pound): $0.60
- Potatoes (per pound): $0.80
- Cheddar Cheese (per pound): $5.00
- Butter (per pound): $4.00
- Sugar (granulated, per pound): $0.70
- Coffee (ground, per pound): $5.50
- Orange Juice (per gallon): $6.00
Please note that these prices are averages and can vary based on the store, brand, and location within Minnesota. Additionally, factors such as seasonal availability and market fluctuations can influence these costs.
Grocery prices across Minnesota cities:
| City | Food Prices |
|---|---|
| Minneapolis | $400 |
| St. Paul | $380 |
| Duluth | $350 |
| Rochester | $370 |
| Bloomington | $390 |
Regional Food Costs
Smaller towns benefit from being closer to farms, which often translates to lower grocery prices. Cities may have more dining options, but those conveniences are more expensive.
Healthcare Costs
Healthcare expenses can significantly impact your budget, whether you’re insured or paying out of pocket.
Insurance Premiums
Health insurance for individuals averages $450 per month, while family plans cost around $1,200. Many employers in Minnesota offer group health plans, which can help reduce individual costs.
Doctor Visits and Medical Services
A routine check-up without insurance will cost you about $150. Depending on the facility and complexity, specialist appointments or procedures like MRIs can run anywhere from $500 to $3,000.
Prescription Costs
If you take medication, expect to pay about $10 to $20 for generics with insurance. Brand-name prescriptions are significantly more expensive, often exceeding $200 monthly.
Expenses of healthcare across Minnesota cities:
| City | Healthcare Costs |
|---|---|
| Minneapolis | $500 |
| St. Paul | $480 |
| Duluth | $460 |
| Rochester | $470 |
| Bloomington | $490 |
Education and Childcare Costs
Childcare is a major expense in the average family’s monthly cost of living in Minnesota. Full-time daycare costs between $800 and $1,200. Public schools are free, but private school tuition averages around $8,000 per year.
Private Schools
Elementary schools average around $8,192 per year, while high schools cost about $14,579 annually. Some schools, like The Blake School in Hopkins, charge significantly more, with annual tuition at $29,025.
Higher Education
The University of Minnesota–Twin Cities, the state’s flagship public university, has the following estimated costs for the 2024-2025 academic year:
In-State Students:
- Tuition and Fees: $17,370
- Housing and Food: $13,856
- Books and Supplies: $1,000
- Total Estimated Annual Cost: $32,226
Out-of-State Students:
- Tuition and Fees: $38,518
- Housing and Food: $13,856
- Books and Supplies: $1,000
- Total Estimated Annual Cost: $53,374
Private Colleges
Private colleges in Minnesota typically charge an average of $31,964 annually for tuition and fees. However, costs can differ significantly between institutions. For example, Carleton College, one of the state’s top private schools, has tuition and fees totaling $65,457 per year.
Education prices across Minnesota cities:
| City | Education & Childcare Costs |
|---|---|
| Minneapolis | $1,000 |
| St. Paul | $950 |
| Duluth | $900 |
| Rochester | $920 |
| Bloomington | $970 |
Taxes and Financial Considerations
Minnesota’s taxes tend to be higher than those in nearby states, but they fund robust public services like education, infrastructure, and healthcare programs.
Income Tax Rates
Minnesota uses a progressive income tax system, with rates ranging from 5.35% to 9.85% based on income. Higher earners fall into the top brackets, so factoring this in if you’re moving for a job is important.
Property Taxes
Property taxes in Minnesota average around 1.05%, but they vary by county. In Hennepin County, where Minneapolis is located, rates tend to be higher compared to rural areas.
Sales Tax
Minnesota’s state sales tax is 6.875%, but local taxes can raise the total to 8.375% in some areas. Groceries and clothing are exempt, making everyday essentials more affordable for families.
How Much Do You Need to Earn to Live Comfortably in Minnesota in 2024?
What is the cost of living in Minnesota in 2024? A single person needs an annual salary of $50,000–$55,000. A family of four requires $90,000–$110,000 to comfortably cover housing, food, utilities, and healthcare.
Salaries are higher in cities like Minneapolis and St. Paul due to elevated housing and childcare costs, while smaller towns like Duluth or Rochester allow for more affordable living.
Entertainment and Dining Costs
Entertainment costs in Minnesota depend on what you choose and where you go. High-profile events like Minnesota Vikings games or concerts at First Avenue can be pricey, while museums and local festivals are often more affordable or even free.
Entertainment Options
Tickets to a Minnesota Vikings game average $100, while concerts or shows in downtown Minneapolis cost about $50 each. Museums and family-friendly attractions typically charge $15 to $25 per person. Here’s a breakdown of popular attractions and their typical costs.
- Minnesota Vikings Game: $100 per ticket
- Concerts in Downtown Minneapolis: $50 per ticket
- Museums and Family-Friendly Attractions: $15–$25 per person
- Theater Performances at Orpheum Theatre: $50–$100 per ticket
- Live Music at First Avenue: $40–$80 per ticket
- Comedy Shows: $20–$50 per ticket
- Festivals and Fairs: Free–$20 entry
- Outdoor Activities (Permits/Rentals): $10–$50
- Basketball, Hockey, or Baseball Games: $40–$150 per ticket
- Art Galleries: Free or suggested donation ($10–$20)
Eating Out
A casual meal at a local diner typically costs $15 per person, while fine dining at upscale restaurants, especially in cities like Minneapolis, can run $50 or more per person. Smaller towns often offer cheaper dining options due to lower overhead costs for restaurants.
Clothing and Personal Care
Seasonal weather means you’ll need winter gear. A good winter jacket costs $100 or more, and snow boots are around $50. Everyday personal care items like shampoo or toothpaste are priced similarly to the national average.
Entertainment expenses across Minnesota cities:
| City | Taxes & Financial Considerations |
|---|---|
| Minneapolis | $200 |
| St. Paul | $180 |
| Duluth | $160 |
| Rochester | $170 |
| Bloomington | $190 |
Comparing Minnesota to Neighbor States
Comparing Minnesota’s cost of living to neighboring states helps you make decisions based on key factors like housing, healthcare, and overall affordability.
Minnesota vs. Wisconsin
Wisconsin is generally more affordable, with housing costs about 4-5% lower than in Minnesota. Utilities and healthcare are slightly cheaper in Wisconsin as well, with healthcare averaging 3% above the national level compared to Minnesota’s 5%.
Transportation and grocery prices are nearly identical, but Wisconsin’s lower housing costs make it the better option for those prioritizing affordability.
Minnesota vs. Iowa
Iowa stands out as the most affordable neighbor, with housing costs about 10% lower than Minnesota’s. Utilities are also slightly cheaper in Iowa, averaging 1% below the national level. Healthcare expenses in Iowa are lower than in Minnesota, averaging just 2% above the national average.
While groceries and transportation costs are similar, Iowa’s affordability makes it a cost-effective choice for families and businesses.
Minnesota vs. North Dakota
North Dakota’s cost of living closely mirrors Minnesota’s, with similar housing, utilities, and grocery expenses. Healthcare costs in both states are about 5% above the national average, making them higher than other regional states.
Transportation costs are also comparable, but North Dakota’s smaller population and less urbanized areas offer more affordable housing in rural regions.
So, Is Minnesota a Great Deal?
Utility bills average $100–$150, and groceries are affordable, with a gallon of milk costing around $3.50. Taxes are higher than in some neighboring states, but they fund strong public services like education and healthcare.
There’s just one more expense to check before moving—contact Goal Line Moving for a quote and professional services tailored to your needs!