Is it cheaper to live in Minneapolis or Phoenix?

Minneapolis, MN is cheaper. Its monthly baseline of $1,350 (1BR rent + utilities) runs about 6% below Phoenix, AZ's $1,430, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $48,000 a year in Minneapolis versus $50,000 in Phoenix.

Which has lower taxes, Minneapolis or Phoenix?

Minneapolis is taxed under Minnesota's rules (a top state income tax rate of 9.85% and a 6.875% state sales tax); Phoenix under Arizona's (a top state income tax rate of 2.50% and a 5.6% state sales tax).

Minneapolis vs Phoenix Cost of Living 2026

Minneapolis

Minnesota

$1,350/mo est.

Phoenix

Arizona

$1,430/mo est.

Monthly estimate = 1BR rent + electricity + gas

A one-person monthly baseline (1BR rent plus typical utilities) runs $1,350 in Minneapolis, MN versus $1,430 in Phoenix, AZ. Overall, Minneapolis, MN is roughly 6% cheaper to live in day-to-day than Phoenix, AZ, driven mainly by rent.

Median household income is $80,269 in Minneapolis, MN and $77,041 in Phoenix, AZ — about 4% higher in Minneapolis, MN. Minnesota has a top state income tax rate of 9.85% and a 6.875% state sales tax; Arizona has a top state income tax rate of 2.50% and a 5.6% state sales tax.

Minneapolis, MN

Phoenix, AZ

Rent

Studio

$992

$1,127

+14% in Phoenix, AZ

1 Bedroom

$1,192

$1,253

+5% in Phoenix, AZ

2 Bedroom

$1,555

$1,493

+4% in Minneapolis, MN

3 Bedroom

$1,761

$1,771

+1% in Phoenix, AZ

Buying a Home

Median Home Value

$345,600

$381,900

+11% in Phoenix, AZ

Income

Median Household Income

$80,269

$77,041

+4% in Minneapolis, MN

Metro Median Wage (annual)

$59,320

$51,380

+13% in Minneapolis, MN

People & Lifestyle

Median Age

33.0 yr

34.8 yr

+1.8 yr in Phoenix, AZ

Homeownership

48.0%

57.1%

+9.1 pp in Phoenix, AZ

Bachelor's+ (25+)

54.5%

32.3%

+22.2 pp in Minneapolis, MN

Avg Commute

22.5 min

25.7 min

+3.2 min in Phoenix, AZ

Crime (per 100k/yr)

Violent Crime

1,167.8

799.6

+32% in Minneapolis, MN

Property Crime

5,182.6

2,338.9

+55% 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

75.1°F

+27.7°F in Phoenix, AZ

Annual Precipitation

32.8 in

8.2 in

+24.6 in in Minneapolis, MN

Gas

Regular Gasoline

$4.25/gal

$5.57/gal

+31% in Phoenix, AZ

Area: Minnesota vs West Coast (PADD 5).

Public Transit

Base Fare (one-way)

$2.00

about equal

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

Utilities

Electricity (¢/kWh)

15.1

15.6

+3% in Phoenix, AZ

Natural Gas ($/MCF)

$14.33

$19.69

+37% in Phoenix, AZ

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

Groceries

Milk (gal)

$4.14

$4.37

+6% in Phoenix, AZ

Bread (lb)

$1.79

$2.10

+17% in Phoenix, AZ

Eggs (doz)

$3.63

$2.25

+38% in Minneapolis, MN

Ground Beef (lb)

$6.97

$7.23

+4% in Phoenix, AZ

Chicken (lb)

$2.15

$2.14

+1% in Minneapolis, MN

Bananas (lb)

$0.63

$0.74

+18% in Phoenix, AZ

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

State Taxes

Sales Tax (MN / AZ)

6.875%

5.6%

+1.3 pp in MN

Income Tax (top rate)

9.85%

2.50%

+7.3 pp in MN

Minneapolis vs Phoenix — FAQ

Is it cheaper to live in Minneapolis or Phoenix?: Minneapolis, MN is cheaper. Its monthly baseline of $1,350 (1BR rent + utilities) runs about 6% below Phoenix, AZ's $1,430, mainly because of rent.
How much more do you need to earn to live in Minneapolis than in Phoenix?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $48,000 a year in Minneapolis versus $50,000 in Phoenix.
Which has lower taxes, Minneapolis or Phoenix?: Minneapolis is taxed under Minnesota's rules (a top state income tax rate of 9.85% and a 6.875% state sales tax); Phoenix under Arizona's (a top state income tax rate of 2.50% and a 5.6% 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).