Dallas vs Minneapolis: cost of living compared
Minneapolis is 3% more expensive than Dallas overall. Dallas (TX) has no state income tax; MN tops out around 7.05%.
Indexes use a US average of 100: below 100 is cheaper than the national average. Housing and transportation are derived from median home prices, rents and commute times; figures come from BLS, Census ACS, Numbeo and the MIT Living Wage Calculator.
The big picture
Overall, Minneapolis has a slightly higher cost of living compared to Dallas. While housing costs are noticeably lower in Minneapolis, other significant expenses, particularly state income tax and utilities, contribute to a higher overall burden. Dallas's lack of a state income tax helps keep its total cost of living somewhat more manageable, despite slightly higher housing and transportation indices.
Housing
Housing costs present a notable difference, with Minneapolis generally offering more affordable home prices than Dallas. Rent for a one-bedroom apartment, however, is roughly similar in both metros. When considering homeownership, Dallas's housing index is slightly higher, while Minneapolis's is somewhat lower. Property taxes and insurance costs can vary significantly in both regions, impacting the total cost of ownership.
Taxes and everyday costs
Daily expenses show a mixed picture. Minneapolis residents face a state income tax, which is absent in Dallas, creating a substantial difference in take-home pay. Utilities are also higher in Minneapolis, as is healthcare. Conversely, transportation costs are somewhat lower in Minneapolis, and food expenses are slightly higher. Miscellaneous goods and services are roughly similar in both cities.
Lifestyle trade-offs
Beyond costs, lifestyle differences are significant. Dallas offers a warm climate with hot summers and mild winters, while Minneapolis experiences distinct four seasons, including cold, snowy winters. Dallas is known for its sprawling urban landscape and car-centric transportation, though public transit options exist. Minneapolis features a more compact urban core with a greater emphasis on walkability and public transit, including light rail, and is well-known for its extensive park system and lakes.
Bottom line
For households considering a move, the absence of a state income tax in Dallas could lead to more disposable income, even with slightly higher housing and transportation costs. Minneapolis offers more affordable home prices but comes with higher utilities, healthcare, and the impact of state income tax. The choice hinges on prioritizing housing affordability versus the broader impact of taxes and other daily expenses, alongside climate and urban environment preferences.
| Measure | Dallas, TX | Minneapolis, MN |
|---|---|---|
| Overall cost of living (US avg = 100) | 105 | 108 |
| Housing index | 99 | 94 |
| Transportation index | 104 | 98 |
| Food index | 98 | 102 |
| Healthcare index | 102 | 105 |
| Utilities index | 105 | 108 |
| Misc index | 98 | 98 |
| Median home price | $358,000 | $328,000 |
| Median 1-bedroom rent | $1,450/mo | $1,450/mo |
| Average commute | 29 min | 27 min |
Compare any two metros with the free cost of living tool, or see the true monthly cost of a specific Minneapolis home with the True Cost Calculator.