What Is the Median Income in Minnesota?

Median income represents the midpoint of all household incomes, meaning half of households earn more and half earn less. Unlike the average, or mean income, the median is less affected by extremely high or low earners. This provides a more representative picture of typical household earnings within a population.

Understanding Median Income in Minnesota

Minnesota’s median household income was $87,556, according to 2023 American Community Survey data from the U.S. Census Bureau. The median is often preferred over the average when analyzing income data because it effectively minimizes the distorting effect of a few extremely high earners.

The methodology for calculating median income involves ordering all household incomes from lowest to highest and then identifying the middle value. Households include all individuals living together, whether related or not, and their combined income from various sources such as wages, salaries, and investments.

Factors Influencing Income in Minnesota

Minnesota’s economic landscape is characterized by a well-educated workforce. The state consistently ranks high nationally in terms of educational attainment, with a substantial percentage of its adult population holding associate degrees or higher. This emphasis on education correlates directly with higher employment rates and increased earning potential across various occupations.

The state also maintains a strong employment environment, indicated by its high labor force participation rate, which was 68.1% in July 2025, positioning Minnesota among the top states nationally. A low unemployment rate, recorded at 3.5% in July 2025, further supports the state’s robust economic conditions. High employment levels and a skilled workforce collectively foster an environment conducive to higher median incomes. These factors suggest a competitive labor market where demand for qualified workers supports wage growth.

Income Variations within Minnesota

Income levels in Minnesota exhibit notable variations depending on geographic location and demographic characteristics. Urban and metropolitan areas, particularly the Twin Cities region, generally report higher median incomes compared to more rural parts of the state. Urban areas tend to have a larger proportion of high-income households and higher educational attainment levels among their residents. This difference can be attributed to the concentration of diverse industries and higher-paying job opportunities in urban centers.

While rural areas may have lower overall median incomes, some non-metropolitan counties have experienced significant percentage growth in per capita income over time. Beyond geography, income also varies by household type and age group. Median income typically peaks for householders aged 45 to 64, while younger individuals under 25 and those aged 65 and over generally have lower median earnings. Furthermore, racial and ethnic disparities in income persist, with white households having higher median incomes than American Indian and Black households, although Asian workers have shown strong earnings growth.

Comparing Minnesota’s Median Income

Minnesota’s median household income consistently surpasses the national median, indicating a relatively strong economic standing for its residents. In 2023, while Minnesota’s median household income was $87,556, the national median household income was reported to be $80,610. This difference highlights Minnesota’s economic advantages and contributes to a higher standard of living for many of its households.

Several factors contribute to Minnesota’s higher income figures compared to the national average. The state benefits from a highly educated workforce and a robust job market, which fosters competitive wages. Additionally, Minnesota’s economy is supported by diverse sectors, which helps to maintain employment stability and income growth. The combination of these elements allows Minnesota to consistently perform above the national average in terms of household income.