Living in Minnesota: Income, Housing, Taxes & Cost of Living (2026)
By Wealthvieu
·
Updated
Table of Contents
Minnesota at a Glance
| Metric |
Value |
National Rank |
| Population (2024) |
5.7 million |
22nd |
| Median household income |
$84,313 |
8th highest |
| Median home price |
$330,000 |
Average |
| Cost of living index |
97 |
Near average |
| State income tax |
5.35-9.85% |
Very high |
| Sales tax |
6.875% (+ local up to 2%) |
Above average |
| Property tax (effective rate) |
1.08% |
Average |
Income and Housing
| City/Area |
Median Income |
Median Home Price |
Median Rent (2BR) |
| Minneapolis |
$72,000 |
$340,000 |
$1,500 |
| St. Paul |
$67,000 |
$290,000 |
$1,350 |
| Twin Cities suburbs |
$100,000+ |
$400,000 |
$1,700 |
| Eden Prairie |
$115,000 |
$450,000 |
$1,800 |
| Rochester (Mayo Clinic) |
$78,000 |
$310,000 |
$1,350 |
| Duluth |
$55,000 |
$250,000 |
$1,100 |
| St. Cloud |
$56,000 |
$240,000 |
$1,050 |
| Mankato |
$55,000 |
$230,000 |
$1,000 |
Tax Burden: High Income Tax, High Returns
| Taxable Income (Single) |
MN State Rate |
| Up to $31,690 |
5.35% |
| $31,691-$104,090 |
6.80% |
| $104,091-$193,480 |
7.85% |
| Over $193,480 |
9.85% |
Minnesota is one of only 4 states with a top income tax rate above 9%.
What You Get for High Taxes
| Quality of Life Metric |
Minnesota Rank |
| Public school quality |
Top 10 |
| Healthcare quality |
Top 5 |
| Infrastructure quality |
Top 10 |
| Poverty rate |
2nd lowest |
| Median income |
8th highest |
Minnesota Pros and Cons
| Financial Pros |
Financial Cons |
| High median income ($84K) |
9.85% top income tax rate |
| Average cost of living (97 index) |
Cold winters (heating $2K-$3K/yr) |
| Fortune 500 companies (18 — 2nd most per capita) |
High sales tax (up to 8.875%) |
| Excellent schools and healthcare |
Short growing season |
| Strong social safety net |
Below-average home affordability in Twin Cities |
Related: Cost of Living by State | State Income Tax Rates | Property Tax by State
