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Cost of Living: Phoenix, AZ vs Minneapolis, MN

A data-driven comparison of housing, groceries, transportation, taxes, job market and more. See which city gives you more for your money.

4.0% Minneapolis, MN is more expensive overall
1.9% 1.9% more expensive housing
3.1% 3.1% more expensive groceries
Updated April 2026 · Data: Bureau of Labor Statistics, U.S. Census Bureau National average = 100

At a Glance

🏠 Housing ~Same
Phoenix
106
Minneapolis
108
🛒 Groceries 3.1% more
Phoenix
98
Minneapolis
101
🚗 Transportation 5.0% more
Phoenix
101
Minneapolis
106
🏥 Healthcare 5.3% more
Phoenix
95
Minneapolis
100
⚡ Utilities 12.0% cheaper
Phoenix
108
Minneapolis
95

Detailed Breakdown

Category Phoenix, AZ Minneapolis, MN Difference
Overall Cost Index1001044.0% more
Housing106108~Same
Median 1BR Rent$1,280$1,3505.5% more
Median Home Price$370,000$330,00010.8% less
Groceries981013.1% more
Transportation1011065.0% more
Healthcare951005.3% more
Utilities1089512.0% less

Tax Comparison

Tax Type Phoenix, AZ Minneapolis, MN
State Income Tax2.50%9.85% (top)
State Sales Tax5.60%6.88%
Avg Property Tax Rate0.51%1.02%
Estate / Inheritance TaxNoneYes

What You'd Need to Earn

Phoenix, AZ
$68,000
Median household income
Minneapolis, MN
$76,000
Median household income
✅ Good news: Income in Minneapolis outpaces the cost difference, so your purchasing power should hold up.

Salary Equivalent Calculator

Find out what you'd need to earn in Minneapolis to maintain your Phoenix lifestyle.

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Based on overall cost index: Phoenix (100) vs Minneapolis (104). This is an estimate for comparison purposes.

Job Market Snapshot

Unemployment Rate
Phoenix3.9%
Minneapolis3.2%
Job Growth (YoY)
Phoenix3.3%
Minneapolis2.5%
Top Industries
PhoenixTech, Healthcare, Finance
MinneapolisHealthcare, Finance, Retail

Quality of Life

Avg Commute
Phoenix27 min
Minneapolis25 min
Walk Score
Phoenix38
Minneapolis69
Air Quality (AQI)
Phoenix58
Minneapolis36
Avg Temperature
Phoenix75°F
Minneapolis45°F
Population
Phoenix1,624,569
Minneapolis425,336

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Planning Your Move?

Here are some helpful resources if you're considering relocating.

🏠 Find ApartmentsBrowse rentals in Phoenix and Minneapolis → 🚚 Get Moving QuotesCompare prices from top movers → 📈 Check Home ValuesSee real estate trends in both cities → 💼 Search JobsFind open positions in Minneapolis →

Compare Other Cities

Phoenix vs Austin → Phoenix vs Denver → Phoenix vs Nashville → Minneapolis vs Raleigh → Minneapolis vs Portland → Minneapolis vs Chicago →

Frequently Asked Questions

Is Phoenix or Minneapolis cheaper to live in?+
Phoenix is the more affordable option overall. The biggest difference is in housing costs, where the gap is about 1.9%. Day-to-day expenses like groceries and transportation are closer between the two cities.
How much is rent in Phoenix vs Minneapolis?+
A typical one-bedroom apartment costs around $1,280/month in Phoenix and $1,350/month in Minneapolis — a difference of about $70 per month.
Which city has lower taxes, Phoenix or Minneapolis?+
Arizona has a state income tax of 2.50% and sales tax of 5.60%. Minnesota has a state income tax of 9.85% (top) and sales tax of 6.88%. Consider all tax types together when evaluating total tax burden, as states with no income tax often compensate with higher sales or property taxes.
Can I afford to move from Phoenix to Minneapolis?+
Median household income in Phoenix is $68,000 compared to $76,000 in Minneapolis. Use the salary calculator above to see what you'd need to earn to maintain your current standard of living.
What about buying a home in Phoenix vs Minneapolis?+
The median home price in Phoenix is $370,000 versus $330,000 in Minneapolis — a difference of $40,000. Property tax rates also differ: Arizona averages 0.51% while Minnesota averages 1.02%.