Is it cheaper to live in Minneapolis or Paterson?

Minneapolis, MN is cheaper. Its monthly baseline of $1,370 (1BR rent + utilities) runs about 4% below Paterson, NJ's $1,430, mainly because of electricity costs.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $48,000 a year in Minneapolis versus $47,000 in Paterson.

Which has lower taxes, Minneapolis or Paterson?

Minneapolis is taxed under Minnesota's rules (a top state income tax rate of 9.85% and a 6.875% state sales tax); Paterson under New Jersey's (a top state income tax rate of 10.75% and a 6.625% state sales tax).

Minneapolis vs Paterson Cost of Living 2026

Minneapolis

Minnesota

$1,370/mo est.

Paterson

New Jersey

$1,430/mo est.

Monthly estimate = 1BR rent + electricity + gas

A one-person monthly baseline (1BR rent plus typical utilities) runs $1,370 in Minneapolis, MN versus $1,430 in Paterson, NJ. Overall, Minneapolis, MN is roughly 4% cheaper to live in day-to-day than Paterson, NJ, driven mainly by electricity costs.

Median household income is $80,269 in Minneapolis, MN and $53,766 in Paterson, NJ — about 33% higher in Minneapolis, MN. Minnesota has a top state income tax rate of 9.85% and a 6.875% state sales tax; New Jersey has a top state income tax rate of 10.75% and a 6.625% state sales tax.

Minneapolis, MN

Paterson, NJ

Rent

Studio

$992

$786

+21% in Minneapolis, MN

1 Bedroom

$1,192

$1,183

+1% in Minneapolis, MN

2 Bedroom

$1,555

$1,468

+6% in Minneapolis, MN

3 Bedroom

$1,761

$1,729

+2% in Minneapolis, MN

Buying a Home

Median Home Value

$345,600

$335,400

+3% in Minneapolis, MN

Income

Median Household Income

$80,269

$53,766

+33% in Minneapolis, MN

Metro Median Wage (annual)

$59,320

$61,430

+4% in Paterson, NJ

People & Lifestyle

Median Age

33.0 yr

33.3 yr

+0.3 yr in Paterson, NJ

Homeownership

48.0%

26.2%

+21.8 pp in Minneapolis, MN

Bachelor's+ (25+)

54.5%

12.5%

+42.0 pp in Minneapolis, MN

Avg Commute

22.5 min

23.1 min

+0.6 min in Paterson, NJ

Crime (per 100k/yr)

Violent Crime

1,168.5

1,010.1

+14% in Minneapolis, MN

Property Crime

5,183.1

2,391.4

+54% 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

47.4°F

52.2°F

+4.8°F in Paterson, NJ

Annual Precipitation

32.8 in

49.0 in

+16.2 in in Paterson, NJ

Gas

Regular Gasoline

$3.96/gal

$3.94/gal

+0% in Minneapolis, MN

Area: Minnesota vs East Coast (PADD 1).

Public Transit

Base Fare (one-way)

$2.00

—

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

Utilities

Electricity (¢/kWh)

17.5

24.9

+42% in Paterson, NJ

Natural Gas ($/MCF)

$14.79

$17.68

+20% in Paterson, NJ

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

Groceries

Milk (gal)

$4.31

about equal

Bread (lb)

$1.66

$1.92

+16% in Paterson, NJ

Eggs (doz)

$3.63

$2.19

+40% in Minneapolis, MN

Ground Beef (lb)

$6.77

$6.90

+2% in Paterson, NJ

Chicken (lb)

$2.10

$2.19

+4% in Paterson, NJ

Bananas (lb)

$0.62

$0.69

+12% in Paterson, NJ

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

State Taxes

Sales Tax (MN / NJ)

6.875%

6.625%

+0.3 pp in MN

Income Tax (top rate)

9.85%

10.75%

+0.9 pp in NJ

Minneapolis vs Paterson — FAQ

Is it cheaper to live in Minneapolis or Paterson?: Minneapolis, MN is cheaper. Its monthly baseline of $1,370 (1BR rent + utilities) runs about 4% below Paterson, NJ's $1,430, mainly because of electricity costs.
How much more do you need to earn to live in Minneapolis than in Paterson?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $48,000 a year in Minneapolis versus $47,000 in Paterson.
Which has lower taxes, Minneapolis or Paterson?: Minneapolis is taxed under Minnesota's rules (a top state income tax rate of 9.85% and a 6.875% state sales tax); Paterson under New Jersey's (a top state income tax rate of 10.75% and a 6.625% 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).