Updated April 5, 2026

The average salary in Minnesota in 2026 is approximately $67,400 per year, meaningfully above the national average of $63,800. Minnesota consistently punches above its weight economically for a state of its size, anchored by a remarkable concentration of Fortune 500 company headquarters, a world-class healthcare ecosystem centred on the Mayo Clinic and the University of Minnesota Medical School, and a financial services industry that has historically paid well and hired steadily.

The Twin Cities metropolitan area, Minneapolis and Saint Paul together, drives wages significantly above the state average and is one of the most economically productive mid-sized metros in the United States. Outside the Twin Cities corridor, wages track more closely to the national median. However, the cost of living is substantially lower in smaller Minnesota cities and rural communities, often resulting in purchasing power that exceeds what the nominal wage suggests.

The Average Salary in Minnesota 2026

Average Salary in Minnesota by City

Average Salary in Minnesota by Industry

The Medical Device Capital of the World

Minnesota’s most distinctive economic asset is its medical device industry. The state is home to more medical device companies per capita than anywhere else in the world, a cluster that emerged from the University of Minnesota’s pioneering cardiac research in the 1950s and grew into a global hub through companies like Medtronic, which was founded in a Minneapolis garage in 1949 and is now one of the largest medical technology companies on earth. Boston Scientific, St. Jude Medical (now Abbott), and dozens of smaller medical device companies have set up operations in the Twin Cities, drawn by the talent pipeline from the University of Minnesota’s medical and engineering programs and by the cluster effects of being near competitors and suppliers.

Medical device engineers, regulatory affairs specialists, and clinical research professionals in Minnesota command salaries that are nationally competitive and locally exceptional. A biomedical engineer with five years of experience at Medtronic or Boston Scientific earns $110,000 to $145,000. Regulatory affairs managers earn $120,000 to $160,000. These salaries, combined with Minneapolis housing costs that are a fraction of Boston or San Francisco, produce an effective standard of living that is genuinely hard to replicate in other major medical device markets.

Minnesota Tax and Cost of Living Context

Minnesota has a progressive state income tax with a top rate of 9.85 percent on income above $183,340 for single filers, one of the highest state rates in the US. For most professionals earning $70,000 to $130,000, the effective state income tax rate falls between 6 and 8 percent. This is higher than neighbouring states like South Dakota (no income tax) and Wisconsin (top rate 7.65%), and it is a consideration for high earners evaluating whether to locate in the Twin Cities versus peer metros in lower-tax states.

The offset is the cost of living. Minneapolis housing costs are significantly lower than in coastal markets. A one-bedroom apartment in uptown Minneapolis or the North Loop rents for $1,600 to $2,100 per month. Detached homes in desirable Minneapolis neighbourhoods like Linden Hills, Kenwood, and Fulton average $500,000 to $800,000, which is expensive by national standards but dramatically below the prices in Seattle or Chicago’s most comparable neighbourhoods. On a $75,000 to $95,000 salary, a professional in Minneapolis can rent comfortably, save aggressively, and realistically target homeownership within four to six years.

Minnesota Salary FAQ

What is the minimum wage in Minnesota in 2026?

The Minnesota minimum wage is $10.85 per hour for large employers (annual gross revenue over $500,000) and $8.85 per hour for small employers, as of January 2026. Minneapolis has its own higher city minimum wage of $15.57 per hour for large employers. Saint Paul’s minimum wage is $15.19 for large employers.

Is Minnesota a good state for high earners?

Minnesota is excellent for professionals in medical devices, healthcare, finance, and technology, with nationally competitive wages and a moderate cost of living compared to coastal markets. The higher state income tax is a real consideration for earners above $150,000. Still, below that threshold, the combination of strong wages and affordable housing makes Minnesota a genuinely attractive place to build a career and accumulate wealth.

What is a good salary in Minneapolis in 2026?

A single adult can live comfortably in Minneapolis on $65,000 to $75,000. Homeownership becomes realistic on an income of $80,000 to $90,000 with consistent savings. A household earning $120,000 to $140,000 combined can own a home in a desirable Minneapolis neighbourhood, save for retirement, and maintain a full lifestyle without financial stress.