Thinking of moving to Minnesota? Nearly 30,000 people moved here in 2024, and for good reason. The state’s median household income is $115,861, 5% higher than the US average. Its robust economy and infrastructure make Minnesota the 4th-best state to live in.
But the move comes with trade-offs. While the cost of living and housing expenses are low, the state levies some of the highest taxes in the country. Still, many are choosing cities like Duluth, Minneapolis, and Rochester for new career opportunities and a better quality of life.
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AT A GLANCE:
- Minnesota has a diverse economy, with fast-growing sectors like manufacturing, life sciences, technology, and finance.
- Minnesota is home to several top-notch educational institutions, including the University of Minnesota and Carleton College.
- With a higher average household income of $115,861, Minnesota ranks #4 for its quality of life.
- The price of living in Minnesota is 4% lower than the national average.
- With a graduated income tax rate of 5.35% to 9.85%, Minnesota has some of the highest taxes in the country.
- Expect to pay between $2,200 to $6,500 for your move, depending on the distance and size of your belongings.
- Minnesota has a continental climate. The summers are hot and humid, while the winters are cold and snowy.
4 Reasons to Move to Minnesota
Why settle for just sunny beaches when you can also enjoy the high life? Browse through over thousands of mansions, high-rise penthouses, and spacious luxury homes for sale in Minnesota, and enjoy the finest the state has to offer.
1. Strong Job Opportunities in Minnesota
Home to 17 Fortune 500 companies, the North Star State currently has 187,000 job openings, and plans to add 170,000 new jobs by the end of 2030. Jobs in manufacturing, life sciences, technology, and finance sectors are in high demand in Minnesota.
- Manufacturing: Minnesota boasts a diverse manufacturing sector, with over 8,300 businesses operating across the state. The manufacturing sector supports over 320,000 jobs, and accounts for 11% of private sector jobs in the state.
- Life Sciences: Also known as the Medical Alley, Minnesota’s life sciences sector is home to over 7,400 companies, including industry giants like Abbott and 3M. The sector contributes around $48.5 billion, and supports over 326,000 jobs across the state.
- Technology: Minnesota’s tech sector supports over 380,000 jobs across the state. Jobs in AI and automation, cybersecurity, and cloud computing are in consistently high demand. The average salary for an IT professional in Minnesota is $107,448 per year.
- Finance: The finance sector in the Greater MSP region is 43% more concentrated than the national average. The state is home to several prestigious financial institutions, including Ameriprise Financial and US Bank.
2. Education in Minnesota
Minnesota has a robust schooling system, with 331 school districts serving nearly a million students across the state. Here is what you need to know about education in Minnesota:
- Public Schools: The state has over 2,600 public schools. Wayzata High School in Plymouth and Eden Prairie High School in Eden Prairie are among the top public schools in the state, both known for strong academics and student college readiness.
- Private Schools: Minnesota has over 510 private schools located around its urban centers. The International School of Minnesota and Mounds Park Academy are among the top private schools. The average tuition in Minnesota’s private schools is $10,219 per year.
- Higher Education: Minnesota is home to several premier educational institutions. The University of Minnesota is popular for its medicine and engineering programs, while Carleton College in Northfield is a leading institution for liberal arts.
3. High Quality of Life in Minnesota
With an average household income of $115,861 (5% higher than the US average), Minnesota ranks #4 in the country for its quality of life. The state has a robust job market in Minneapolis and St. Paul, as well as easy access to healthcare at 140 hospitals.
Additionally, Minnesota is the 8th-safest state in the country, with only 2.5 violent crimes per 1,000 residents, compared to 4 incidents nationally. This combination of financial stability, safety, and easy access to essential services ensures a high quality of life in Minnesota.
4. Diverse Landscape and Outdoor Activities
Northern Minnesota, especially along Lake Superior, is home to coniferous forests and wetlands, ideal for hiking and skiing. The state’s southwestern regions have vast grassland plains and prairies, perfect for camping, fishing, and bird-watching.
Additionally, Minnesota is known as the Land of 10,000 Lakes, with over 14,300 freshwater bodies and an extensive network of rivers and wetlands. This rich and diverse landscape makes for year-round outdoor recreation.
Pros and Cons of Moving to Minnesota
Here are the key benefits and drawbacks of living in Minnesota:
| ✅ Pros | ❌ Cons |
|---|---|
| 1. Minnesota has a robust job market, with fast-growing sectors like life sciences, manufacturing, tech, and finance. | 1. Minnesota has a graduated income tax ranging from 5.35% to 9.85%, which is one of the highest in the country. |
| 2. The state ranks #4 for overall quality of life, thanks to its career opportunities, safety, and easy access to healthcare facilities. | 2. Due to its diverse landscape with numerous water bodies, Minnesota has a major mosquito problem, especially during the summer. |
| 3. Minnesota has a diverse landscape with forests, lakes, and wetlands, making it perfect for year-round outdoor recreation. | 3. Winters in Minnesota can be harsh. The average snowfall ranges between 36 inches in the southwest to over 70 inches along Lake Superior. |
| 4. The cost of living in Minnesota is 4% lower than the national average. | 4. Public transport is sparse outside of major cities, and buying a car is a necessity here. |
Things to Know Before Moving to Minnesota ✅
Here’s what you should keep in mind before relocating to Minnesota:
1. Infrastructure and Transportation
Minnesota has preserved and maintained key parts of its infrastructure. 72% of Minnesota’s state-owned roads outside the National Highway System are in good condition. Also, the number of bridges in poor condition dropped from over 1,000 in 2017 to 874 in 2024.
Moreover, the state is set to receive $4.8 billion in federal funding over five years for the improvement of its highways and bridges.
2. Climate in Minnesota
Minnesota has a continental climate with four distinct seasons. Summers are usually hot and humid, with average temperatures ranging from 65°F to 83°F. On the other hand, winters are cold and snowy, with average temperatures between 9°F and 24°F.
However, Minnesota is prone to extreme weather conditions, including floods, tornadoes, and severe thunderstorms. Make sure to check local FEMA and National Weather Service (NWS) designated risk zones in your city before you move to Minnesota.
3. Laws and Regulations
- Vehicle Registration and Driver’s License: After your move, you must register your vehicle and obtain a Minnesota driver’s license within 60 days. Proof of residency, a social security number, a vehicle title, and a valid driver’s license are required for registration.
- Moving to Minnesota with Guns: Those over the age of 18 can apply for a permit to carry a pistol (PCP). However, background checks are necessary to purchase a firearm, and guns are prohibited in certain locations, including schools, bars, and government buildings.
- Recreational Marijuana: Adults aged 21 and above can purchase up to 2 ounces of cannabis flower and 8 grams of concentrate from licensed stores. Keep in mind that the Minnesota Clean Indoor Air Act bans smoking or vaping in indoor public places.
- Pet Registration Laws: Dogs aged 6 months and above must be licensed by the county commissioner. The license fee varies from 50¢ to $2 for a yearly license. Cities like Minneapolis also require licensing of cats. Check the city website for more information.
- Moving Permits: You will only require a moving permit for oversized vehicles in Minnesota. Your vehicle is considered oversized only if it exceeds 13’6″ in height, 8’6″ in width, or 45 feet for a single vehicle, and 75 feet for a combination of vehicles in length.
4. Low Cost of Living in Minnesota
The average cost of living in Minnesota is 4% lower than the national average, which means you save on housing, renting and utilities. However, healthcare, grocery, and transportation costs in the state are slightly higher than the national average.
Minnesota remains an attractive option compared to states like California and New York, where living costs are 58% and 30% above the national average.
5. Tax Burden In Minnesota
Minnesota has some of the highest taxes in the country. Here’s what you need to know:
- Income Tax: Minnesota ranks 44th in overall tax competitiveness in the country. This is due to Minnesota’s graduated income tax, i.e. 5.35% to 9.85% of your annual income.
- Sales Tax: Minnesota also has a high sales tax of 6.87%. Some cities also levy local sales tax. This makes the average effective tax rate 8.12%, one of the highest in the country.
- Property Tax: Property taxes in Minnesota are slightly higher than the national average. The average effective property tax rate in Minnesota is 1.05%. This is slightly higher than the US average of 0.90% of the assessed value of your property.
How to Move to Minnesota?
Before buying a house in Minnesota, follow this step-by-step guide for a seamless move:
1. How to Plan Your Logistics?
- If you want to hire professional movers, you can expect to pay around $110 per hour. However, this rate can vary depending on the size of your belongings and the distance.
- On the other hand, if you want to do it yourself, renting a truck can be a better option. The average rent of a mid-size truck with a load capacity of 4,000 to 6,000 lbs ranges between $40 and $80 per day.
2. How to Set Up Utilities in Minnesota?
Start setting up your utilities in advance, as the process can take up to 4 weeks.
- Electricity and Gas: Xcel Energy, Minnesota Power, and Connexus Energy are the state’s largest electricity providers. Minnesota Power serves northeastern Minnesota, Connexus Energy serves the north metro area, and the Twin Cities are served by Xcel Energy.
- Water and Sewer: Water and sewer services in Minnesota are usually managed by the local municipalities, along with a few private companies. You can visit your city website to find out about your specific service provider and apply for the service.
- Internet and Cable: Xfinity, Spectrum, CenturyLink, and Mediacom are among the largest internet and cable service providers in the state. The cost of internet and cable service in Minnesota ranges between $35 and $80 per month.
3. How to Enroll Your Kids in School?
Most schools in Minnesota offer online registration. Just visit your local school district’s website to get started. Here’s how the process generally works:
- Kindergarten or First Grade: Your child must be at least 5 years old for kindergarten and 6 years old for the first grade by the 1st of September. For enrollment, you will need proof of age, proof of residency, and the child’s immunization record.
- For Older Children: In addition to the documents mentioned above, you will also need transcripts and a withdrawal form from the child’s previous school.
- Transfers and Special Cases: These are mostly managed by the local school districts in Minnesota. You can visit their website or the school district office for more details.
4. How to Transfer Your Job or Find a New One?
- For Remote Jobs: Minnesota is in the national top 10 for remote work. 34% of the residents in Minnesota work from their homes. If you are also a remote worker and moving to Minnesota, just ask your employers for state-specific tax and employment policies.
- Find a New Job: Minnesota’s CareerForce platform offers several free services, including job assistance, career exploration, and training. Additionally, you can also utilize online job boards like LinkedIn and Indeed to find job openings in your area.
5. How to Find the Perfect House?
The Minnesota housing market currently leans in favor of buyers. 27% of homes listed have experienced price drops, and inventory has increased by 6.5%. This gives buyers more negotiating power to secure a better deal.
- In popular cities like Minneapolis, St. Paul, and Rochester, the average rent is $1,595, depending on the neighborhood and the nearby amenities.
- If you plan to buy a house in a popular city, on average, homes for sale in Minneapolis cost around $337K. Cities like Hibbing and Albert Lea offer more affordable options, with median housing costs of $157K and $171K respectively.
Should I Move to Minnesota?
Yes, you should definitely move to Minnesota. The state combines new opportunities, a good quality of life, and friendly communities. However, relocating to Minnesota isn’t easy. It takes time, careful planning, and effort to find the perfect place to call your home.
With Houzeo, Minnesota’s best home-buying website, buying a house in the North Star State is simple. You can browse through the latest listings, save your favorites, schedule showings, and submit offers, all at your fingertips.
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Data Sources
To help you make a smart move to Minnesota, we analyzed key data points that impact relocation costs, lifestyle, and employment prospects. We’ve sourced reliable, up-to-date data across the following categories:
- Statistical Atlas: Major employers
- Zillow: Average rent, Median home price
- MoveBuddha: Estimated moving costs
- Thisoldhouse: DIY truck rental rates, Average cost of moving
By backing our insights with real numbers, we give you a clear picture of what it really takes to relocate to Minnesota, long before the moving boxes are packed.
