Cost of living in Minnesota: Average rent costs. Utility expenses. Grocery prices. Transportation fees. Healthcare costs. State income tax. Property tax rates. Educational expenses. Restaurant dining prices. Insurance premiums.
Average rent costs
The median rent in Minnesota is $1,526, with rents ranging from $100 to $13,750 per month. Notably, the median rent has increased by $17 over the last year. This upward trend highlights the changing dynamics in the Minnesota rental market, reflecting a need for both prospective tenants and current residents to stay informed about evolving rental costs across the state.
Utility expenses
In Minnesota, residents can expect to pay an average monthly cost of $366.88 for all utilities, which breaks down to specific services such as $97.58 for electricity, $53.91 for natural gas, and $70.39 for water. Additional monthly expenses include $60 for Internet service and $85 for cable. For those residing in a 915-square-foot apartment in Minneapolis, the monthly utility cost, encompassing essentials like electricity, heating, cooling, water, and garbage service, is approximately $171. For a detailed breakdown and comprehensive guide on managing living costs in the Minneapolis area, refer to the Minneapolis Cost Of Living Guide provided by Kris Lindahl Real Estate.
Grocery prices
Grocery prices in Minnesota have increased significantly since the COVID-19 pandemic, with a 25% rise overall, and specific items like beef roasts, canned fruits and vegetables, and eggs seeing even higher increases, such as a 50% rise in egg prices. The average weekly grocery spending for Minnesota households is around $249, varying by household size. For more detailed insights on how groceries in Minnesota have been affected, you can visit the Patch website where the study findings are discussed. As these price changes continue to impact families, Minnesota residents are adjusting their budgets to accommodate the rising costs.
Transportation fees
In Minnesota, transportation fees for Metro Transit buses and light rail are being reduced to $2 for all non-express services, and $1 for youth, seniors, and Medicare residents, effective January 1st, 2025. This change signifies an important shift in public transit accessibility by eliminating rush hour fare differentials, making travel more affordable for a broader range of commuters. The decision by Metro Transit is a crucial step towards encouraging the use of public transportation across the state, facilitating smoother and more economically viable movement for daily travelers.
Healthcare costs
Healthcare costs in Minnesota experienced a 7 percent increase in 2022 for individuals with private health insurance. This rise highlighted significant regional variations influenced by both resource use and prices. Notably, outpatient surgery witnessed the most substantial uptick in utilization at 8 percent. More insights into these trends and their implications can be found on the Minnesota Health Care Costs report.
State income tax
Minnesota has a graduated rate income tax system with four brackets: 5.35 percent, 6.80 percent, 7.85 percent, and 9.85 percent, applied based on income thresholds. The state also taxes pensions, Social Security benefits, and gambling winnings, with some exemptions and deductions available. For more detailed information on these tax rates and other related matters, visit the Minnesota State Taxes Guide.
Property tax rates
In Minnesota, the average effective property tax rate is 1.02%, slightly higher than the national average of 0.99%. Property tax rates vary by location, with urban areas like Hennepin County having rates as high as 1.32%, while rural areas like Becker County have rates as low as 0.80%. For more detailed information and a helpful tool, you can visit the Minnesota Property Tax Calculator on SmartAsset's website.
Educational expenses
In Minnesota, the educational expenses vary significantly depending on the type of institution: public in-state tuition is approximately $7,880, public out-of-state tuition is around $8,472, and private college tuition is about $28,508 per year. Additional living costs, including on-campus expenses, can range from $13,673 to $15,151 annually. For more detailed insights on what contributes to these costs and how they compare across different institutions, visit the MNsaves website.
Restaurant dining prices
In Minnesota, the cost of dining at restaurants is relatively moderate, with a Domino's Medium Cheese Pizza priced at $13.99, a McDonald's Big Mac at $4.43, a Chick-fil-A Chicken Sandwich at $3.39, and a Taco Bell Combo Meal at $6.43, reflecting prices that are generally in line with or slightly lower than the national average. Additionally, a new law in Minnesota requires restaurants to disclose total prices, including any service fees or surcharges, to protect consumers from hidden fees, which may lead to menu price adjustments to cover employee benefits and other costs. For more details on how Minnesota compares with other states in fast food costs, you can explore the Fast Food Prices by State data.
Insurance premiums
In Minnesota, the average annual cost for car insurance is $716 for minimum coverage and $2,448 for full coverage, with rates varying by city and influenced by factors like driving history and vehicle type. Health insurance premiums are also rising, with an average increase of 8% to 15% in 2025, and home insurance rates have seen significant jumps due to climate change and other factors. For more detailed information, you can visit the Average Cost of Car Insurance in Minnesota page on Bankrate, which offers insights into how premiums are calculated and what factors impact them the most within the state.