Is it cheaper to live in Louisville or Minneapolis?

Louisville, KY is cheaper. Its monthly baseline of $1,040 (1BR rent + utilities) runs about 23% below Minneapolis, MN's $1,350, mainly because of rent.

How much more do you need to earn to live in Louisville than in Minneapolis?

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $35,000 a year in Louisville versus $48,000 in Minneapolis.

Which has lower taxes, Louisville or Minneapolis?

Louisville is taxed under Kentucky's rules (a top state income tax rate of 3.50% and a 6% state sales tax); Minneapolis under Minnesota's (a top state income tax rate of 9.85% and a 6.875% state sales tax).

Louisville vs Minneapolis Cost of Living 2026

Louisville

Kentucky

$1,040/mo est.

Minneapolis

Minnesota

$1,350/mo est.

Monthly estimate = 1BR rent + electricity + gas

A one-person monthly baseline (1BR rent plus typical utilities) runs $1,040 in Louisville, KY versus $1,350 in Minneapolis, MN. Overall, Louisville, KY is roughly 23% cheaper to live in day-to-day than Minneapolis, MN, driven mainly by rent.

Median household income is $64,731 in Louisville, KY and $80,269 in Minneapolis, MN — about 19% higher in Minneapolis, MN. Kentucky has a top state income tax rate of 3.50% and a 6% state sales tax; Minnesota has a top state income tax rate of 9.85% and a 6.875% state sales tax.

Louisville, KY

Minneapolis, MN

Rent

Studio

$786

$992

+26% in Minneapolis, MN

1 Bedroom

$877

$1,192

+36% in Minneapolis, MN

2 Bedroom

$1,096

$1,555

+42% in Minneapolis, MN

3 Bedroom

$1,299

$1,761

+36% in Minneapolis, MN

Buying a Home

Median Home Value

$221,500

$345,600

+56% in Minneapolis, MN

Income

Median Household Income

$64,731

$80,269

+24% in Minneapolis, MN

Metro Median Wage (annual)

$48,370

$59,320

+23% in Minneapolis, MN

People & Lifestyle

Median Age

37.7 yr

33.0 yr

+4.7 yr in Louisville, KY

Homeownership

60.6%

48.0%

+12.6 pp in Louisville, KY

Bachelor's+ (25+)

33.4%

54.5%

+21.1 pp in Minneapolis, MN

Avg Commute

22.7 min

22.5 min

+0.2 min in Louisville, KY

Crime (per 100k/yr)

Violent Crime

761.5

1,167.8

+53% in Minneapolis, MN

Property Crime

3,535.4

5,182.6

+47% in Minneapolis, MN

FBI Crime Data Explorer. Offenses per 100,000 residents per year; agency reporting practices vary, so this is approximate.

Climate

Avg Annual Temperature

58.2°F

47.4°F

+10.8°F in Louisville, KY

Annual Precipitation

44.9 in

32.8 in

+12.1 in in Louisville, KY

Gas

Regular Gasoline

$4.35/gal

$4.25/gal

+2% in Louisville, KY

Area: Midwest (PADD 2) vs Minnesota.

Public Transit

Base Fare (one-way)

$1.75

$2.00

+14% in Minneapolis, MN

Adult base one-way fare — TARC vs Metro Transit (2026).

Utilities

Electricity (¢/kWh)

14.9

15.1

+1% in Minneapolis, MN

Natural Gas ($/MCF)

$19.12

$14.33

+25% in Louisville, KY

Residential, state-level averages (EIA). MCF = 1,000 cubic feet.

Groceries

Milk (gal)

$4.16

$4.14

+1% in Louisville, KY

Bread (lb)

$1.73

$1.79

+4% in Minneapolis, MN

Eggs (doz)

$2.19

$3.63

+66% in Minneapolis, MN

Ground Beef (lb)

$6.56

$6.97

+6% in Minneapolis, MN

Chicken (lb)

$1.90

$2.15

+13% in Minneapolis, MN

Bananas (lb)

$0.61

$0.63

+3% in Minneapolis, MN

Average prices — South vs Midwest (BLS). Regional where available, otherwise U.S. average.

State Taxes

Sales Tax (KY / MN)

6.875%

+0.9 pp in MN

Income Tax (top rate)

3.50%

9.85%

+6.3 pp in MN

Louisville vs Minneapolis — FAQ

Is it cheaper to live in Louisville or Minneapolis?: Louisville, KY is cheaper. Its monthly baseline of $1,040 (1BR rent + utilities) runs about 23% below Minneapolis, MN's $1,350, mainly because of rent.
How much more do you need to earn to live in Louisville than in Minneapolis?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $35,000 a year in Louisville versus $48,000 in Minneapolis.
Which has lower taxes, Louisville or Minneapolis?: Louisville is taxed under Kentucky's rules (a top state income tax rate of 3.50% and a 6% state sales tax); Minneapolis under Minnesota's (a top state income tax rate of 9.85% and a 6.875% state sales tax).

Sources: US Census Bureau, ACS 5-Year (rent, income, home value, demographics); NOAA Climate Normals 1981–2010 (climate); EIA weekly retail (gas); Tax Foundation 2026 (state taxes).