Is it cheaper to live in Minneapolis or Salem?

Salem, OR is cheaper. Its monthly baseline of $1,170 (1BR rent + utilities) runs about 15% below Minneapolis, MN's $1,370, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $48,000 a year in Minneapolis versus $40,000 in Salem.

Which has lower taxes, Minneapolis or Salem?

Minneapolis is taxed under Minnesota's rules (a top state income tax rate of 9.85% and a 6.875% state sales tax); Salem under Oregon's (a top state income tax rate of 9.90% and no state sales tax).

Minneapolis vs Salem Cost of Living 2026

Minneapolis

Minnesota

$1,370/mo est.

Salem

Oregon

$1,170/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 $1,170 in Salem, OR. Overall, Salem, OR is roughly 15% cheaper to live in day-to-day than Minneapolis, MN, driven mainly by rent.

Median household income is $80,269 in Minneapolis, MN and $71,900 in Salem, OR — about 10% higher in Minneapolis, MN. Minnesota has a top state income tax rate of 9.85% and a 6.875% state sales tax; Oregon has a top state income tax rate of 9.90% and no state sales tax.

Minneapolis, MN

Salem, OR

Rent

Studio

$992

$1,075

+8% in Salem, OR

1 Bedroom

$1,192

$989

+17% in Minneapolis, MN

2 Bedroom

$1,555

$1,337

+14% in Minneapolis, MN

3 Bedroom

$1,761

$1,778

+1% in Salem, OR

Buying a Home

Median Home Value

$345,600

$382,400

+11% in Salem, OR

Income

Median Household Income

$80,269

$71,900

+10% in Minneapolis, MN

Metro Median Wage (annual)

$59,320

$55,310

+7% in Minneapolis, MN

People & Lifestyle

Median Age

33.0 yr

35.7 yr

+2.7 yr in Salem, OR

Homeownership

48.0%

55.7%

+7.7 pp in Salem, OR

Bachelor's+ (25+)

54.5%

31.4%

+23.1 pp in Minneapolis, MN

Avg Commute

22.5 min

22.4 min

+0.1 min in Minneapolis, MN

Crime (per 100k/yr)

Violent Crime

1,168.5

540.6

+54% in Minneapolis, MN

Property Crime

5,183.1

2,878.6

+44% 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

53.0°F

+5.6°F in Salem, OR

Annual Precipitation

32.8 in

39.7 in

+6.9 in in Salem, OR

Gas

Regular Gasoline

$3.95/gal

$5.09/gal

+29% in Salem, OR

Area: Minnesota vs West Coast (PADD 5).

Public Transit

Base Fare (one-way)

$2.00

—

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

Utilities

Electricity (¢/kWh)

16.9

16.3

+4% in Minneapolis, MN

Natural Gas ($/MCF)

$14.95

$20.59

+38% in Salem, OR

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

Groceries

Milk (gal)

$4.31

$4.82

+12% in Salem, OR

Bread (lb)

$1.66

$2.04

+23% in Salem, OR

Eggs (doz)

$3.63

$2.19

+40% in Minneapolis, MN

Ground Beef (lb)

$6.77

$7.36

+9% in Salem, OR

Chicken (lb)

$2.10

$2.01

+4% in Minneapolis, MN

Bananas (lb)

$0.62

$0.70

+14% in Salem, OR

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

State Taxes

Sales Tax (MN / OR)

6.875%

None

+6.9 pp in MN

Income Tax (top rate)

9.85%

9.90%

+0.1 pp in OR

Minneapolis vs Salem — FAQ

Is it cheaper to live in Minneapolis or Salem?: Salem, OR is cheaper. Its monthly baseline of $1,170 (1BR rent + utilities) runs about 15% below Minneapolis, MN's $1,370, mainly because of rent.
How much more do you need to earn to live in Minneapolis than in Salem?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $48,000 a year in Minneapolis versus $40,000 in Salem.
Which has lower taxes, Minneapolis or Salem?: Minneapolis is taxed under Minnesota's rules (a top state income tax rate of 9.85% and a 6.875% state sales tax); Salem under Oregon's (a top state income tax rate of 9.90% and no 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).