MinnesotaMoney Index August 2026
"Top services, top tax."
Minnesota — Money Index — Key Facts
- Banking Access: 7/10. Minnesota scores 7/10 on banking access — fine for everyday accounts, worth shopping online HYSA rates to beat local offers.
- Retirement: 5/10. Minnesota is workable for retirees (5/10) but not at the top of the pack.
- The Short Answer. Minnesota is a balanced state for money — top tax, top services.
- Inflation Resilience: 6/10. Minnesota scores 6/10 on inflation resilience — middle of the national pack.
- Affordability: 6/10. Minnesota sits in the middle of the affordability pack (6/10).
- Remote Work: 6/10. Minnesota scores 6/10 for remote work — solid but not stand-out.
- Midwest Money Profile. Minnesota sits in the Midwest — and its personality is "The Tax Burden". High marginal rates demand precision: deductions, retirement accounts, and discipline.
- Business Climate: 7/10. Minnesota scores 7/10 on business climate with 6/10 for remote work — moderate runway for entrepreneurs.
- Tax Friendliness: 3/10. Minnesota has one of the heaviest state income-tax burdens (3/10). Maxing 401(k)/IRA matters more here than almost anywhere.
- Minnesota Quirk. Minnesota's top tax, top services shapes how residents save and invest — small policy choices compound into big lifestyle differences.
Minnesota is a balanced state for money — top tax, top services.
On our 1-10 money scorecards, Minnesota ranks 3/10 on tax friendliness, 6/10 on cost of living, and 5/10 on retirement — placing it #38 of 50 states overall.
How Minnesota scores across the board
Seven dimensions of household finance, scored 1-10. Higher is better in every category.
Money personality: The Tax Burden
High marginal rates demand precision: deductions, retirement accounts, and discipline.
Four Minnesota money truths
Minnesota has one of the heaviest state income tax burdens (3/10) — maxing tax-advantaged accounts matters more here than almost anywhere.
Cost of living scores 6/10 — Minnesota sits in the middle of the affordability pack.
Retirement friendliness 5/10 — workable for retirees but not at the top of the pack.
Business climate 7/10 with 6/10 for remote work — moderate runway for entrepreneurs and laptop-class earners.
"Minnesota's top tax, top services shapes how residents save and invest — small policy choices compound into big lifestyle differences."
Money lessons from Minnesota
- 1
High-tax states demand maxed-out 401(k)/IRA contributions — every dollar deferred is a 35%+ instant return
- 2
State tax policy is part of your investment strategy — not just where you live
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Minnesota money FAQ
Is Minnesota a good state for keeping your money?+
Minnesota scores 39 on our composite money index, with a the tax burden profile. Minnesota is a balanced state for money — top tax, top services.
What is the state income tax in Minnesota?+
Minnesota has one of the heaviest state income tax burdens in the country. On our 1-10 tax-friendliness scale (10 = no income tax), Minnesota scores 3.
Is Minnesota good for retirement?+
Minnesota scores 5/10 on retirement friendliness, factoring in tax treatment of Social Security and pension income, healthcare costs, and overall affordability for fixed-income households.
Is Minnesota good for business owners and remote workers?+
Minnesota scores 7/10 on business climate and 6/10 on remote-work suitability — covering tax incentives, talent pools, infrastructure and cost of doing business.
How affordable is Minnesota?+
Minnesota scores 6/10 on cost of living (10 = cheapest). Combined with 6/10 inflation resilience, that shapes how far paychecks stretch here.
What money personality fits Minnesota?+
The Tax Burden — High marginal rates demand precision: deductions, retirement accounts, and discipline.
What's surprising about money in Minnesota?+
Minnesota's top tax, top services shapes how residents save and invest — small policy choices compound into big lifestyle differences.
