Memphis vs Minneapolis: cost of living compared
Minneapolis is 38% more expensive than Memphis overall. Memphis (TN) 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
Moving between Memphis and Minneapolis presents a substantial shift in living expenses. Memphis offers a noticeably lower overall cost of living, driven primarily by its much more affordable housing market. While other categories like food, healthcare, and utilities also lean towards Memphis being less expensive, housing costs create the most significant difference in a household budget between these two metros.
Housing
Housing is considerably more affordable in Memphis, whether you are looking to buy a home or rent an apartment. The median home price in Memphis is significantly lower, and monthly rent for a typical one-bedroom unit also reflects this substantial difference. Minneapolis housing costs are higher across the board, which is a major factor in its elevated overall cost of living index.
Taxes and everyday costs
Daily expenses for transportation, food, healthcare, and utilities are generally lower in Memphis compared to Minneapolis. Additionally, Tennessee does not have a state income tax, which can lead to more take-home pay for residents in Memphis, contrasting with Minnesota's state income tax. This difference in taxation, combined with lower costs for essential goods and services, impacts daily spending.
Lifestyle trade-offs
Beyond costs, a move involves distinct lifestyle changes. Memphis offers a warmer, humid climate with a longer summer season, while Minneapolis experiences four distinct seasons, including cold, snowy winters. Both metros have riverfronts and established urban cores, but Minneapolis is known for its extensive park system and robust public transit options, whereas Memphis relies more on personal vehicles for getting around.
Bottom line
For those considering a move, Memphis generally offers a much more budget-friendly environment, particularly due to its significantly lower housing costs and the absence of a state income tax. While Minneapolis provides a different climate and urban experience, it comes with a higher price tag for nearly all major spending categories. The financial impact of choosing one metro over the other is substantial and should be carefully weighed.
| Measure | Memphis, TN | Minneapolis, MN |
|---|---|---|
| Overall cost of living (US avg = 100) | 78 | 108 |
| Housing index | 54 | 94 |
| Transportation index | 88 | 98 |
| Food index | 85 | 102 |
| Healthcare index | 88 | 105 |
| Utilities index | 92 | 108 |
| Misc index | 78 | 98 |
| Median home price | $178,000 | $328,000 |
| Median 1-bedroom rent | $900/mo | $1,450/mo |
| Average commute | 25 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.