What it costs to live and work in Minnesota: the minimum wage, state income tax, sales tax and median rent, from official sources, and what they mean for your monthly budget.
| Minnesota | Source | |
|---|---|---|
| Minimum wage | $11.41 an hour | US Department of Labor, State Minimum Wage Laws (updated July 1, 2026) |
| State income tax | 5.35 % to 9.85 % | Tax Foundation, State Individual Income Tax Rates and Brackets, 2026 |
| State sales tax | 6.875 % | Tax Foundation, State and Local Sales Tax Rates, Midyear 2026 (as of July 1, 2026) |
| Median gross rent | $1,291 a month (2024) | US Census Bureau, ACS 2024 1-year estimates, table B25064 Median Gross Rent |
Minnesota's minimum wage is $11.41 an hour in 2026, adjusted every year for inflation.
Minnesota has graduated rates from 5.35 % to 9.85 %; the top rate applies to single filers above $203,150.
The state sales tax is 6.875 %; local taxes add an average of 1.26 %, for a combined 8.14 %.
What income does rent in Minnesota take?
A common rule of thumb is to keep rent at or below 30 % of gross income. At the median rent of $1,291 a month, that means a household income of about $51,600 a year before tax.
Sources
- US Department of Labor, State Minimum Wage Laws (updated July 1, 2026) (2026-07-01)
- Tax Foundation, State Individual Income Tax Rates and Brackets, 2026 (2026-02-19)
- Tax Foundation, State and Local Sales Tax Rates, Midyear 2026 (as of July 1, 2026) (2026-07-06)
- US Census Bureau, ACS 2024 1-year estimates, table B25064 Median Gross Rent (2025-09)
- Minnesota Paid Leave, Premiums (2026)