What Is the Cost of Living in Minnesota?

The cost of living includes expenses like housing, food, transportation, healthcare, and other goods and services. Understanding these financial aspects is important for individuals and families.

Overall Cost of Living in Minnesota

Minnesota generally presents a more affordable cost of living compared to the national average. Overall, the state’s expenses are approximately 5% lower than the average across the United States. This relative affordability is significantly influenced by housing costs, which are about 16% lower than the national benchmark. Utilities also contribute, coming in around 3% below the national average.

While many categories are more affordable, food shows slightly higher costs, about 3% above the national average. Transportation expenses are also somewhat lower, approximately 4% below the national average, and healthcare costs are about 1% less.

Breakdown of Major Expense Categories

Understanding specific costs within key categories provides a clearer picture of daily financial demands in Minnesota. Housing, food, transportation, healthcare, and miscellaneous expenses constitute substantial portions of a typical household budget.

Housing

Rental costs across Minnesota vary. The average rent for all property types is approximately $1,595 per month in 2025. The median home price in Minnesota stands at about $342,900 in 2025.

Utility expenses contribute to overall housing cost. The average monthly electricity bill is approximately $193. Internet services typically cost around $60 per month. Natural gas and water also form core utility expenditures for most households.

Food

Food costs in Minnesota are slightly higher than the national average. Residents spend an average of $250.56 weekly on groceries for food prepared at home. For a single person, monthly grocery expenses are estimated at $300, while a family of four can expect to spend approximately $900 per month. Dining out averages $97.07 weekly, with casual dining around $15 and a mid-range meal about $50.

Transportation

Transportation expenses in Minnesota encompass vehicle ownership and public transit. The average annual cost for car insurance ranges from approximately $1,258 to $2,568. The average price per gallon of regular gasoline is around $3.13, and vehicle maintenance averages roughly $1,200 annually. Public transit options include a one-way fare costing $2 and monthly passes priced at $65. Metro Transit in the Twin Cities offers all-day passes for $2 to $4 and seven-day passes for $20.

Healthcare

Healthcare costs generally align favorably with national figures in Minnesota. The average monthly cost for employer-sponsored health insurance is approximately $140.33. For those seeking health insurance through the marketplace, a Silver plan premium averages around $621 per month. Overall, healthcare costs in Minnesota are about 1% lower than the national average.

Miscellaneous Expenses

Beyond primary categories, various miscellaneous expenses contribute to the overall cost of living. Annual spending on entertainment is estimated at approximately $2,482. Personal care services typically amount to about $768 annually. Monthly expenditures for clothing are around $115, and other personal care items average $54 per month.

Cost Variations Across Minnesota

The cost of living in Minnesota is not uniform, differing between metropolitan areas, smaller cities, and rural regions. These variations primarily stem from differences in housing markets.

Major metropolitan areas, such as Minneapolis and St. Paul, typically have higher living expenses. In Minneapolis, the average monthly rent is approximately $1,391 to $1,674, while the median home price can range from $325,000 to $405,152. St. Paul also reflects elevated costs, with average rents between $1,262 and $1,395 per month. Minneapolis housing is about 17% cheaper than the U.S. average, yet groceries are 3% pricier there. Utility costs in Minneapolis are roughly 3% less expensive, and entertainment expenses are about 4% lower than the national average.

Smaller cities like Duluth and Rochester offer a more moderate cost of living. Duluth’s cost of living is approximately 15.3% lower than the U.S. average. Rochester’s living costs are around 13% higher than the national average.

Rural areas across Minnesota generally feature the lowest cost of living, particularly regarding housing. Average rent and home prices in these regions are often considerably lower than in urban or suburban areas. Residents in rural areas might experience higher transportation costs due to longer distances for commuting and accessing services.

Other Financial Considerations

Several financial factors shape the overall cost of living experience in Minnesota, including taxation and income levels. These elements provide important context for understanding the economic landscape.

Minnesota’s tax structure includes a progressive state income tax with rates ranging from 5.35% to 9.85%. The statewide sales tax rate is 6.875%. Property taxes average around 1.11%. These taxes directly affect disposable income and overall affordability.

Income and wages provide earning potential. The median household income in Minnesota is projected to be approximately $90,340. The average annual pay across the state is about $66,600. For a single adult to live comfortably, an annual salary of $91,728 is suggested.

The employment market in Minnesota offers diverse opportunities across various sectors, including healthcare, manufacturing, and technology. The state’s robust economy and skilled workforce contribute to a dynamic job market.