CITY COMPARISON
Minneapolis vs Denver Cost of Living: Which Is Cheaper in 2026?
Data updated May 2026. Rent from Zillow ZORI, taxes from the Tax Foundation, cost-of-living index from BEA.
Minneapolis to Denver is a Northern-tier move that swaps lakes for mountains. Both cities run a similar size and feel. The tax math favors Denver.
Minnesota's income tax runs into the high single digits. Colorado uses a flat rate in the low single digits. Denver rent is higher than Minneapolis's, but the overall cost of living is comparable.
Is Minneapolis or Denver cheaper to live in?
At a $100,000 salary, moving from Minneapolis to Denver costs roughly $2,800 a year in disposable income. At $150,000 the gap narrows to about $1,600 a year in Minneapolis's favor.
Denver wins on income tax, with a significantly lighter rate than Minnesota's. Minneapolis competes on cheaper rent and a strong corporate job market. Net result is close, with income level deciding it.
DISPOSABLE INCOME: MOVING MINNEAPOLIS → DENVER
AT A $100,000 SALARY
in Minneapolis's favor
AT A $150,000 SALARY
in Minneapolis's favor
Assumes the same gross salary in both cities (the remote-work case) and a single filer renting at the local median. Positive means Denver leaves more money after tax, housing, and everyday costs.
Full cost breakdown: Minneapolis vs Denver
Here is where every dollar goes in each city, at two salary levels. Taxes, housing, and everyday costs are all in.
AT A $100,000 SALARY
| Line item | Minneapolis | Denver |
|---|---|---|
| Gross salary | $100,000 | $100,000 |
| Federal income tax | -$15,000 | -$15,000 |
| State income tax (6.8%) Denver: (4.4%) | -$6,800 | -$4,400 |
| FICA (Social Security + Medicare) | -$7,650 | -$7,650 |
| Housing (median rent) ($1,320/mo) Denver: ($1,470/mo) | -$15,840 | -$17,640 |
| Other living costs (COL index 107) Denver: (COL index 128) | -$31,050 | -$34,200 |
| Sales tax on spending (7.5%) Denver: (7.8%) | -$1,630 | -$1,867 |
| Disposable income / year | $22,030 | $19,243 |
AT A $150,000 SALARY
| Line item | Minneapolis | Denver |
|---|---|---|
| Gross salary | $150,000 | $150,000 |
| Federal income tax | -$27,000 | -$27,000 |
| State income tax (6.8%) Denver: (4.4%) | -$10,200 | -$6,600 |
| FICA (Social Security + Medicare) | -$11,475 | -$11,475 |
| Housing (median rent) ($1,320/mo) Denver: ($1,470/mo) | -$15,840 | -$17,640 |
| Other living costs (COL index 107) Denver: (COL index 128) | -$31,050 | -$34,200 |
| Sales tax on spending (7.5%) Denver: (7.8%) | -$1,630 | -$1,867 |
| Disposable income / year | $52,805 | $51,218 |
Minneapolis vs Denver: taxes, rent, and schools at a glance
| Metric | Minneapolis | Denver |
|---|---|---|
| State income tax | 6.8% | 4.4% |
| Median 1-bedroom rent | $1,320/mo | $1,470/mo |
| Combined sales tax | 7.5% | 7.8% |
| Cost-of-living index (US avg = 100) | 107 | 128 |
| School composite rating (1-10) | 7/10 | 7/10 |
Who should pick Minneapolis?
Stay in Minneapolis if cheaper rent and a deep Fortune-500 corporate base matter more than the income tax savings. The city has a strong job market in healthcare, finance, and retail.
Who should pick Denver?
Pick Denver if you want a much lower income tax and mountain access. Rent runs higher than Minneapolis but the tax savings compounds, especially at higher salaries.
How we calculated this
Disposable income is gross salary minus federal income tax, state income tax, FICA, housing, everyday non-housing costs, and sales tax on discretionary spending. Federal tax uses 2026 effective rates after the standard deduction for a single filer. State income tax is a single-bracket approximation for mid-six-figure earners. Housing is the median 1-bedroom rent. Non-housing costs scale with the BEA cost-of-living index. Sales tax is applied to roughly 70 percent of discretionary spending, since groceries and many services are reduced-rate or exempt in most states.
The numbers on this page assume the same gross salary in both cities. That is the remote-work scenario, and it is the cleanest way to isolate the cost-of-living difference. If a new job would rebase your salary by city, plug both real offers into the tool below.
Run your own Minneapolis vs Denver numbers
The interactive Move-To-City tool lets you set different salaries for each city, enter your actual rent, switch filing status, and see the full FIRE-timeline impact of the move.
Open the Move-To-City tool →KEEP READING
Educational only, not financial advice. Cost-of-living estimates are modeled approximations from public data and will not match any individual budget exactly. Verify rent, tax, and salary figures for your own situation before making a move.