The average cost of living in Minnesota
According to the U.S. Bureau of Economic Analysis (BEA), the average annual per-person spending in Minnesota was $56,489 in 2023. This number represents the typical outlay Minnesotans make each year on essentials such as housing, medical care, food, utilities and other personal needs.
Here’s a breakdown of the largest spending categories in Minnesota:
| Category | Annual per-capita cost in Minnesota |
|---|---|
| Housing and utilities | $10,031 |
| Health care | $9,839 |
| Food and beverages for off-premises consumption | $3,721 |
| Gasoline and other energy goods | $1,576 |
| All other personal consumption expenditures | $31,321 |
| Total cost | $56,489 |
Housing costs in Minnesota
Housing is one of the largest monthly expenses for most Minnesota families. Based on 2025 data from Apartments.com, the average rent in Minnesota is $1,332, while the national average is $1,639. Costs can shift depending on whether you settle in the Twin Cities or a rural area, and the size of your home will affect your budget as well. According to the U.S. Census Bureau’s 2023 survey, typical Minnesota rents are:
- One-bedroom rent: $1,127
- Two-bedroom rent: $1,326
- Three-bedroom rent: $1,622
- Four-bedroom rent: $1,813
For those looking to purchase property, the median home price in Minnesota is $371,600. The U.S. median home price is $446,638, so buyers may find Minnesota’s market more accessible than in some other states.
Property taxes are another key consideration. Minnesota sits at No. 16 for highest effective property tax rates in the U.S., averaging 0.99%.
» COMPARE: Best moving companies in Minnesota
Food costs in Minnesota
Grocery bills are an essential part of any household budget. The most recent U.S. Census figures show the average weekly grocery spend in Minnesota is $250.56, compared with the U.S. average of $270.21.
Your food expenses will change depending on your eating habits and where you live. Residents who shop at major supermarkets or discount grocers in cities may find deals, while those in rural areas often have fewer options and may pay a premium for certain goods. Families eating out regularly — especially in the Twin Cities or popular tourist areas — will see noticeably higher monthly totals than those who cook most meals at home.
Transportation costs in Minnesota
Getting around Minnesota, whether by car or public transit, requires planning for fluctuating transportation costs. The average price per gallon of regular gas in Minnesota is $2.93, which is a bit cheaper than the U.S. average of $3.13.
For car owners, insurance is another recurring expense. The average auto insurance premium in Minnesota is $1,062.78, while the national average is $1,258.
Health care costs in Minnesota
Minnesotans spend about the same on health care as most Americans. The average annual employee contribution for employer-sponsored health insurance in Minnesota is $1,672, with employers typically covering the remaining $6,683 out of the $8,355 total premium.
Nationally, employees pay an average of $1,640 out of a total premium of $8,182.
Utility costs in Minnesota
Utility costs in Minnesota can be a noticeable part of the monthly budget, especially during harsh winter months. The average monthly electric bill is $110.78, compared with $136.84 nationally.
Natural gas comes in at $11.07 per thousand cubic feet, compared with $12.92 for the U.S. average.
FAQ
Is living in Minnesota expensive?
No, Minnesota does not have a high cost of living compared with the national average. Housing and rent often cost less than in many other states. Minnesotans also spend slightly less on utility bills and health care costs than most Americans. Groceries are just about average in Minnesota.
How much money do I need to live comfortably in MN?
How much money you will need to lead a comfortable life in Minnesota depends on your lifestyle and location within the state, as the amount needed can jump significantly depending on the size of your family. According to MIT's Living Wage Calculator, a single adult with no children requires an annual income of $48,475 before taxes, whereas a family of four (two working adults and two children) needs a household budget $131,549.
» RELATED: How much do families need to budget to live comfortably?
Is Minnesota good for renters?
Yes, Minnesota is a good state for renters. Rent typically costs less than the U.S. median, and there are a variety of rental options available throughout the state. Though, thankfully, Minnesota tenant protections have recently been improved, keep in mind that the quality of life for renters depends on local amenities and property management practices.
What is the average monthly cost of childcare for a family in Minnesota?
According to MIT's Living Wage Calculator, the average cost of childcare in Minnesota per month ranges from $17,341 for one child to $42,526 for three. Education costs can also factor into childcare expenses; while public K-12 education is free, supplies and activities can add up, and private education averages $10,164 according to Education Data Initiative.
» RELATED: Income Needed to Afford Daycare
Article sources
ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. Specific sources for this article include:
Apartments.com, “Rent Trends.” Accessed Oct. 7, 2026.
Redfin, “Redfin Data Center.” Accessed Oct. 7, 2026.
Tax Foundation, “Where Do People Pay the Most in Property Taxes?” Accessed Oct. 7, 2026.
United States Census Bureau, “July 2026 HTOPS Household Pulse: July 15 - August 3.” Accessed Oct. 7, 2026.
AAA Gas Prices, “State Gas Price Averages.” Accessed Oct. 7, 2026.
National Association of Insurance Commissioners, “2022/2023 Auto Insurance Database Report.” Accessed Oct. 7, 2026.
KFF, “Average Annual Single Premium per Enrolled Employee For Employer-Based Health Insurance.” Accessed Oct. 7, 2026.
U.S. Energy Information Administration, “2024 Average Monthly Bill- Residential.” Accessed Oct. 7, 2026.
Living Wage Calculator, "Living Wage Calculation for Minnesota." Accessed Oct. 7, 2026.
Education Data Initiative, "Average Cost of Private School [2026]: Tuition by Education Level." Accessed Oct. 7, 2026.
RentCafe, "Cost of Living in Minnesota 2026." Accessed Oct. 7, 2026.
