What it costs to live in Minnesota
Price levels against the national average
Prices overall
-1.58%
below average
Housing
-9.38%
ranks 23 for shelter
A hundred dollars of shopping
$98
costs this here
Price rank
20
1 is the most expensive
What that actually means in Minnesota
- Minnesota is cheaper than the country as a whole, ranking 20 nationally on price. Prices sit about 1.58% below average, so a hundred dollars of shopping costs $98. Small on any one purchase. Considerable across a year of them.
- Minnesota is cheap where it counts most. Overall prices are about 1.58% from average. Housing is about 9.38% from it, which is a far bigger gap. Groceries and gas cost roughly what they cost elsewhere. Rent does not, and rent is the bill that repeats every month without fail.
- Put a wage against it. Seventy-five thousand dollars of salary, spent at Minnesota prices, stretches as far as $76,206 would at national-average prices. That is before any tax. It is purely what the local cost of things does to what you earn.
- Prices in Minnesota run about 1.58% below the national level, placing it 20 nationally. The one-hundred-dollar national-average basket costs $98 in-state. The parity is a fixed-basket price comparison, so the gap represents genuine purchasing power rather than a difference in what residents choose to buy.
- Shelter in Minnesota carries a parity about 9.38% beneath the national level while the all-items index sits about 1.58% from it — a spread of about 7.79%, ranking 23 for housing costs. Since housing typically represents the largest single line in a household budget, a state whose cheapness is concentrated there delivers more real income than its all-items parity implies, particularly for households early in their tenure.
- A seventy-five thousand dollar salary deflated by Minnesota's price parity is equivalent to $76,206 of national-average purchasing power. ⚠️ No tax is included: this isolates the price level from the tax system entirely, and both act on the same income. Note also that the index says nothing about local nominal wages, so it should not be read on its own as evidence that a household is better or worse off here.
What the money buys here
A $75,000 salary
| Take-home, actual dollars | $58,016 |
|---|---|
| Price level, all itemsUS average = 100 | 98.417 |
| HousingUS average = 100 | 90.622 |
| Cheapest place to live | 32nd of 51 |
Housing is where places differ most. Everything else moves far less than people expect.
Price parities are an index where the US average is 100 — a comparison between places, not a price.
The same pay, somewhere else
A $75,000 salary
| Take-home in Minnesota | $58,016 |
|---|---|
| Take-home in Texas | $61,593 |
| Once local prices are leveledBEA price parity | +$4,434 |
State income tax and state price levels only. No city income tax, and no housing market.
What is expensive here
A $75,000 salary
- Housing90.622
- Goods101.841
- Services99.335
| Housing | 90.622 |
|---|---|
| Goods | 101.841 |
| Services | 99.335 |
| All items | 98.417 |
An index where 100 is the national average. Housing moves far more than anything else.
Housing, against the country
A $75,000 salary
| Cheapest housing | MS · 55 |
|---|---|
| Dearest housing | DC · 169 |
| This state, cheapest first | 29th of 51 |
A BEA index where 100 is the national average, not a house price.
Where the ranking flips
A $75,000 salary
| Minnesota on take-home | 46th |
|---|---|
| Once prices are leveled | 35th |
| Places moved | 11 |
Left is rank on take-home. Right is rank once local prices are leveled by BEA parities.
Minnesota against Texas
A $75,000 salary
| Measure | Minnesota | Texas |
|---|---|---|
| Take-home pay | $58,016 | $61,593 |
| Worth after local prices | $58,949 | $63,383 |
| Share of pay taxed | 22.65% | 17.88% |
| State sales tax | 6.88% | 6.25% |
| Groceries exempt here | Yes | Yes |
| Clothing exempt at $100 | Yes | No |
| Property tax rate | 1.02% | 1.49% |
| Price level | 98.4 | 97.2 |
| Housing prices | 90.6 | 97.4 |
| Fuel tax | 32.6¢ | 20¢ |
| Tobacco tax | $3.04 | $1.41 |
City income tax excluded. Sales-tax row: state-only. Exemptions: Minnesota, Statewide average; Texas, Harris County (Houston). Clothing: one $100 item; higher prices can change tax.
What you would need there
A $75,000 salary
| To match take-home only | $69,916 |
|---|---|
| You could take a cut of | −$6,125 |
| Prices in Texas | 97 vs 98 |
State taxes and state price levels only. No city tax, and no housing market.
Where the difference actually sits
Each line compares Minnesota with the national average for that kind of spending. The overall figure is the three above it, weighted the way a typical household spends — which is why housing can pull it a long way on its own.
| What you spend on | Against national average | Includes |
|---|---|---|
| Housing | -9.38% | Rent and owners’ equivalent rent |
| Goods | 1.84% | Groceries, fuel, clothing |
| Other services | -0.67% | Haircuts, repairs, childcare |
| All items | -1.58% | The three above, weighted |
What a salary is worth here
A salary of seventy-five thousand dollars, spent at Minnesota prices, buys what $76,206 would buy at national average prices. That is a price adjustment only. No tax of any kind has been taken off it, and tax is a separate bill on the same money.
What this page cannot tell you
- This is one number for the whole of Minnesota, and no state is one place. A big city and a rural county can sit far apart on every figure here.
- These prices were measured in 2023. Rents in particular can move a long way in a couple of years.
- And this is prices only. It says nothing about what Minnesota charges you in tax, which is a separate bill and is covered elsewhere on this site.
- These parities are state-level aggregates. BEA also publishes metropolitan-area parities, and within-state dispersion between a large metro and a rural area routinely exceeds the difference between two states — so a state figure should not be read as descriptive of any particular address in Minnesota.
- The underlying survey vintage is 2023, which is the most recent BEA publication rather than a current reading. Shelter parities are the component most exposed to drift between vintages, so recent local rent movements in Minnesota will not be reflected here.
- Price parity and tax burden are independent quantities and this page models only the first. A low-parity state with high income tax and a high-parity state with none can leave a household in the same real position; comparing Minnesota to another jurisdiction requires both figures, not either alone.
Questions people ask
What does a lower cost of living actually get me?
Room that a bigger salary elsewhere might not buy. A hundred dollars here does the work of $98 at national prices.
Which part of living here is actually different?
Housing, and by a long way. Goods cost broadly the same everywhere — a television is a television — but rent and house prices swing far wider than anything else, so the housing component is what pushes Minnesota away from the national average rather than the shopping.
How should I compare a job offer here with one somewhere else?
Two adjustments, not one. Prices bring a reference salary to $76,206 here, and state income tax changes the figure separately.
How does a below-average price level translate into real income?
Minnesota's all-items parity is at or below the national average, so nominal income understates purchasing power: one hundred dollars purchases $98 of national-average consumption. ⚠️ Parity measures prices, not availability or quality, and does not capture differences in the composition of what is bought.
Which component drives this state's parity?
The housing parity dominates Minnesota's all-items figure, diverging from the national average by more than twice the goods component. Tradeable goods arbitrage across state lines and therefore cluster near parity; housing is non-tradeable, so its parity spans a far wider range and drives most interstate variation in the headline index.
How should nominal offers be adjusted across states?
Nominal offers should be deflated by the destination parity before comparison; the reference salary is equivalent to $76,206 in national-average terms here. ⚠️ Price adjustment and tax adjustment are independent and must both be applied — a state may be simultaneously cheap and heavily taxed, or the reverse.