Minneapolis, MN Cost of Living (2026)

Minneapolis has a cost of living index of 108, about 8% above the national average. The housing index is 118, modestly elevated. A one-bedroom apartment in Minneapolis averages $1,300 to $1,700 per month, and median home prices in the city sit around $330,000. The median household income is approximately $78,000, which provides reasonable headroom against the local cost structure. Compared to similarly sized metro areas like Seattle or Denver, Minneapolis offers better housing value at comparable wage levels.

A $100,000 salary in an average-cost city translates to about $93,000 in purchasing power in Minneapolis. That's a moderate difference, and one that is partly offset by the strength of the local job market in healthcare, finance, and technology. Companies like UnitedHealth Group, Target, and US Bancorp have significant presences here and pay competitive salaries that often exceed what the local cost structure demands.

Minnesota has a progressive income tax that tops out at 9.85%, the fourth-highest top rate in the country. At a $100,000 income, the marginal state rate is 7.85%, and the effective rate is around 6 to 7%. That's a real cost compared to no-income-tax states, and it's worth factoring into any comparison with cities in Texas or Florida. Minneapolis residents do not pay a separate city income tax.

Heating costs in Minneapolis are a significant part of the annual budget. Natural gas and electric bills from November through March can run $150 to $300 per month in a typical apartment, and homeowners in older housing stock may pay more. The city gets an average of 54 inches of snow per year, which also increases transportation costs and adds winter clothing and maintenance expenses that residents in warmer climates don't face.