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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
Minnesota is a genuine bargain: 2 of the 2 cities in this ranking come in below the national cost-of-living average. Minneapolis leads at an index of 101 with rent at just $1,638/month — 14% less than the $1,895 national median. Here are the numbers, sourced from federal data updated in 2026.
| Rank | City | Combined Rate | Income Tax | Sales Tax | Cost Index | |
|---|---|---|---|---|---|---|
| 1 | Minneapolis | 18.4% | 9.85% | 7.545% | 101 | Details |
| 2 | St Paul | 18.4% | 9.85% | 7.545% | 97 | Details |
#1 Ranked: Minneapolis — cost index 101, rent $1,638/mo, income $80,269
Minneapolis rent up 4% over the past year
2 of 2 cities come in below the national cost-of-living average of 112
Data sourced from Census Bureau, Zillow, BLS, and Tax Foundation — current as of 2026
Minnesota is a genuine bargain: 2 of the 2 cities in this ranking come in below the national cost-of-living average. Minneapolis leads at an index of 101 with rent at just $1,638/month — 14% less than the $1,895 national median. Here are the numbers, sourced from federal data updated in 2026.
Minneapolis comes in at #1. And from what we can tell, rent is $1,638 a month. Household income is $80,269. The cost of living index is 101. Take it or leave it — the data is what it is.
Tax burden isn't just income tax. We combine three layers: state income tax (9.85% in Minneapolis), combined state+local sales tax (7.545%), and effective property tax (1.02%). It's fine. Not great, not bad. At 9.85% state income tax, the real differentiator becomes sales and property tax rates. On a $75,000 — we had to double-check this one — salary, the estimated take-home in #1 Minneapolis is $50,322/year.
There's a catch worth understanding. Minneapolis rent up 4% over the past year. Rent in #1-ranked Minneapolis has increased from $1,569 to $1,638/mo over the past 12 months — a 4% increase. Rising costs may erode its top ranking over time. This is worth factoring into any relocation decision.
But the numbers also reveal: Across Minnesota, the average cost of living index is 99 — 13 points below the national median. Known for Twin Cities prosperity, outstate thrift, the state offers 2 tracked cities with median rents averaging $1,562/month. That's $333 less than the national average of $1,895. In the context of rising national rents, this stability is worth noting.
Bottom line: Minneapolis leads this ranking for clear, data-backed reasons — but the "best" city depends on your priorities. Click into any city below to see the full detail page with 12-month trend charts, profession-specific salary data, and a breakdown of all five cost categories. If you're seriously considering a move, use our salary calculator to model your specific income against these numbers.
| City | State Tax | Sales Tax | Property Tax | Est. Take-Home |
|---|---|---|---|---|
1Minneapolis | 9.85% | 7.545% | 1.02% | $53,510 |
2St Paul | 9.85% | 7.545% | 1.02% | $53,510 |
425,115 residents · Minnesota
Minneapolis earns its position at #1 through a combination that's hard to replicate. The 101 cost index sits 11 points below the national baseline, and the $80,269 median income means purchasing power here is amplified by the low cost base. Homes list at $327,043 — $140,327 below the national median — a genuine ownership opportunity. On the cost side, Utilities leads the way at 93, while Healthcare trails at 104.
303,820 residents · Minnesota
Dive into St Paul's numbers: cost index 97 (15 points below national average), rent $1,485/month, income $73,055, and a home price of $289,137. The city's cost profile isn't flat — Utilities is the cheapest category at 89, while Healthcare runs 100. With 303,820 residents, it balances mid-size city convenience with manageable costs.
Minneapolis ranks #1 in Minnesota for this analysis with a cost index of 101 and median income of $80,269.
Our cost of living index uses real Zillow rent data as the foundation, indexed to 100 (national median). Sub-categories (housing, food, transport, utilities, healthcare) are derived from the overall index with regional adjustments. Data is updated monthly.
Minneapolis (ranked #1) has a cost index of 101 and rent of $1,638/mo, while St Paul (ranked #2) has a cost index of 97 and rent of $1,485/mo — a 4-point difference in cost of living.
City data is refreshed monthly from Census Bureau population estimates, Zillow rent and home price indices, BLS salary data, and Tax Foundation tax rates. Last updated: 2026.
The median 1-bedroom rent in Minneapolis is $1,638/month as of 2026, based on Zillow's Observed Rent Index. This is $257 below the national median of $1,895/month.
The median home price in Minneapolis is $327,043, which is 4.1× the local median income. It's on the edge of affordability for median-income households. The national median home price is $467,370.
Minnesota has a 9.85% state income tax rate. Combined state and local sales tax averages 7.545%, and the effective property tax rate is 1.02%.
This ranking was generated using data current as of early 2026. Population and income data comes from the Census Bureau's American Community Survey (5-year estimates). Rent and home price data is from Zillow's monthly releases. Tax rates are from the Tax Foundation's 2025 edition. Rankings are refreshed monthly.