Minneapolis vs Nashville: cost of living compared
Nashville is about the same as Minneapolis overall. Nashville (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
Comparing Minneapolis and Nashville reveals an overall cost of living that is roughly similar, both exceeding the national average. However, this similarity masks significant differences in key areas. Housing costs are noticeably higher in Nashville, while Minneapolis residents face greater expenses for healthcare and utilities. A major distinction impacting overall financial well-being is the presence of a state income tax in Minnesota, which Tennessee does not have, creating a substantial difference in take-home pay for many.
Housing
Housing presents the most significant cost disparity between these two cities. Both buying a home and renting a one-bedroom apartment are considerably more expensive in Nashville than in Minneapolis. While specific property taxes and insurance costs vary, the initial outlay for housing is a much bigger gap. Minneapolis generally offers a more established housing stock, often with older, well-built homes, while Nashville's rapid growth has led to a mix of new construction and older properties.
Taxes and everyday costs
Daily expenses vary considerably. Nashville offers slightly lower costs for groceries, healthcare, and utilities, which can provide some relief. However, transportation costs are a bit higher in Nashville. The most impactful difference for everyday budgeting is the state income tax. Minnesota levies a significant state income tax, whereas Tennessee does not, meaning a larger portion of earnings remains in your pocket in Nashville, offsetting some other higher costs.
Lifestyle trade-offs
Beyond costs, lifestyle differences are notable. Minneapolis experiences distinct four-season weather, including cold, snowy winters and warm summers, with a strong emphasis on outdoor activities. Nashville enjoys a milder, humid subtropical climate with hot summers and generally mild winters. Minneapolis has a more established public transit system, while Nashville is more car-dependent. Nashville often feels more spread out with a faster pace of growth, contrasting with Minneapolis's more traditional urban density.
Bottom line
For those considering a move, the financial impact depends heavily on housing and income. While the overall cost of living appears similar, Nashville's higher housing prices are a major factor. However, the absence of a state income tax in Tennessee can provide a substantial financial advantage, potentially offsetting those housing costs for many. Conversely, Minneapolis offers more affordable housing but comes with higher taxes and utility bills, making a careful budget comparison essential.
| Measure | Minneapolis, MN | Nashville, TN |
|---|---|---|
| Overall cost of living (US avg = 100) | 108 | 108 |
| Housing index | 94 | 119 |
| Transportation index | 98 | 104 |
| Food index | 102 | 98 |
| Healthcare index | 105 | 98 |
| Utilities index | 108 | 98 |
| Misc index | 98 | 95 |
| Median home price | $328,000 | $438,000 |
| Median 1-bedroom rent | $1,450/mo | $1,650/mo |
| Average commute | 27 min | 29 min |
Compare any two metros with the free cost of living tool, or see the true monthly cost of a specific Nashville home with the True Cost Calculator.