Minneapolis, MN vs Louisville, KY Cost of Living (2026)

Minneapolis has a cost of living index of 92, about 8% below the national average. Housing runs below the national baseline, with a housing index of 80.5. Typical apartment rent is about $1,453 a month, and median home values are around $405,800. The median household income is approximately $80,000.

A $100,000 salary in an average-cost city stretches to about $108,700 in Minneapolis. That extra room can make it easier to save, pay down debt, or stretch for a better housing setup. Several everyday categories, especially transportation and miscellaneous costs, stay below the national baseline.

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.

Louisville has a cost of living index of 90.8, about 9.2% below the national average. Housing runs below the national baseline, with a housing index of 74.2. Typical apartment rent is about $1,409 a month, and median home values are around $362,290. The median household income is approximately $58,000.

A $100,000 salary in an average-cost city stretches to about $110,100 in Louisville. That extra room can make it easier to save, pay down debt, or stretch for a better housing setup. Several everyday categories, especially transportation and healthcare, stay below the national baseline.

Kentucky has a flat state income tax of 4%. Louisville Metro adds a local occupational tax of 2.2% on wages earned within the metro area. The combined burden of around 6.2% is moderate. Property taxes in Jefferson County are comparably reasonable, with effective rates typically running 0.9 to 1.2% of assessed value. Louisville sits in an attractive middle ground on taxes: not as favorable as no-income-tax Texas or Florida, but not as burdensome as New York or California.

Groceries in Louisville run meaningfully below the national average. Transportation costs are also below average, though the city is car-dependent like most mid-sized metros without dense transit. Louisville's proximity to both Cincinnati and Nashville means residents in some industries have access to a broader regional job market. The city hosts several large employers, including Humana, UPS's air hub, and Ford Motor Company's truck assembly operations, creating wage floors in logistics, healthcare, and manufacturing.