Minneapolis vs Sacramento: cost of living compared

Sacramento is 19% more expensive than Minneapolis overall. State income tax tops out around 7.05% in MN vs 9.3% in CA.

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 Minneapolis and Sacramento involves a substantial shift in overall cost of living. Sacramento is noticeably more expensive across the board, with its higher housing costs being the primary driver of this difference. While other categories also show Sacramento as pricier, the gap in housing expenses creates the largest impact on a household budget when comparing these two cities.

Housing

Housing costs present a significant contrast. Both buying and renting are considerably more expensive in Sacramento. Median home prices are substantially higher there, and a one-bedroom apartment commands a noticeably larger monthly rent. Minneapolis offers more affordable options for both homeowners and renters, with housing costs below the national average, while Sacramento's housing expenses are well above it.

Taxes and everyday costs

Beyond housing, daily expenses also lean higher in Sacramento. Transportation, food, healthcare, and utilities are all more costly there. Additionally, California's state income tax rate is higher than Minnesota's, which will impact take-home pay for many. This means that routine spending, from groceries to commuting, will generally require a larger portion of one's income in Sacramento.

Lifestyle trade-offs

Lifestyle differences extend beyond cost. Minneapolis experiences distinct four seasons, including cold, snowy winters, while Sacramento enjoys a Mediterranean climate with hot, dry summers and mild, wet winters. Minneapolis has a well-developed public transit system and a strong biking culture, while Sacramento is more car-dependent, though it also has some public transportation options. Commute times are roughly similar in both metros.

Bottom line

For those considering a move, the financial implications are clear: Sacramento generally entails a higher cost of living across nearly all categories, most notably housing. A household's budget will stretch further in Minneapolis, allowing for more disposable income or savings. The decision often comes down to balancing these significant cost differences with preferences for climate, urban density, and lifestyle amenities each city offers.

MeasureMinneapolis, MNSacramento, CA
Overall cost of living (US avg = 100)108128
Housing index94132
Transportation index98110
Food index102108
Healthcare index105108
Utilities index108125
Misc index98105
Median home price$328,000$498,000
Median 1-bedroom rent$1,450/mo$1,750/mo
Average commute27 min30 min

Compare any two metros with the free cost of living tool, or see the true monthly cost of a specific Sacramento home with the True Cost Calculator.

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