Is $40,000 a good salary in Minnesota?

$40,000 in Minnesota provides a monthly take-home of approximately $2,666 after taxes. Across major Minnesota cities, this salary is rated manageable, with an average monthly surplus of $335.

What is the cost of living on $40,000 in Minnesota?

The average monthly living cost across major Minnesota cities is approximately $2,331 for a single adult (rent, food, transport, utilities, healthcare). On $40,000 take-home pay of $2,666/month, you would have roughly $335/month remaining.

Living in Minnesota · 2026

Is $40,000 enough to live in Minnesota?

Single adult · MN · 2026 tax brackets · Real cost-of-living data

Statewide verdict:Manageable

Monthly take-home

$2,666

Avg monthly expenses

$2,331

Avg monthly surplus

$335

Savings potential

~13%

After-tax take-home in Minnesota

Gross salary$40,000

Federal income tax− $2,694

State income tax− $2,260

Social Security− $2,480

Medicare− $580

Annual take-home$31,986

Effective tax rate20.04%

How $40,000 feels in Minnesota cities

Rent: HUD FMR 2026 · Food: USDA Low-Cost Plan × COL · Transport/Utilities/Healthcare: BLS CES × COL

Minneapolis

COL index: 1.17× national avg

Very tight

Rent (1BR)

$1,600

Food

$484

Transport

$205

Utilities

$193

Healthcare

$234

Total: $2,716/mo

Surplus: $-50/mo

Rent burden: 60.0% — Unaffordable (> 50%)

Full Minneapolis analysis →

St Paul

COL index: 1.10× national avg

Manageable

Rent (1BR)

$1,450

Food

$462

Transport

$193

Utilities

$182

Healthcare

$220

Total: $2,507/mo

Surplus: $159/mo

Rent burden: 54.4% — Unaffordable (> 50%)

Full St Paul analysis →

Rochester

COL index: 0.95× national avg

Comfortable

Rent (1BR)

$1,150

Food

$440

Transport

$166

Utilities

$157

Healthcare

$190

Total: $2,103/mo

Surplus: $563/mo

Rent burden: 43.1% — High (35–50%)

Full Rochester analysis →

Duluth

COL index: 0.88× national avg

Comfortable

Rent (1BR)

$1,000

Food

$418

Transport

$154

Utilities

$145

Healthcare

$176

Total: $1,893/mo

Surplus: $773/mo

Rent burden: 37.5% — High (35–50%)

Full Duluth analysis →

Bloomington

COL index: 1.08× national avg

Manageable

Rent (1BR)

$1,400

Food

$418

Transport

$189

Utilities

$178

Healthcare

$216

Total: $2,401/mo

Surplus: $265/mo

Rent burden: 52.5% — Unaffordable (> 50%)

Full Bloomington analysis →

Brooklyn Park

COL index: 1.05× national avg

Manageable

Rent (1BR)

$1,350

Food

$449

Transport

$184

Utilities

$173

Healthcare

$210

Total: $2,366/mo

Surplus: $300/mo

Rent burden: 50.6% — Unaffordable (> 50%)

Full Brooklyn Park analysis →

50 / 30 / 20 Budget Planner

Based on your monthly take-home of $2,666 ($31,992/yr)

Needs 50%Wants 30%Savings 20%

Needs50%

$1,333

per month

›Rent / mortgage
›Groceries
›Utilities
›Insurance
›Minimum debt payments
›Transportation

Wants30%

$800

per month

›Dining out
›Streaming services
›Gym
›Hobbies
›Travel
›Shopping

Savings20%

$533

per month

›Emergency fund
›401(k) / IRA
›Investments
›Down payment fund
›Debt payoff (extra)

Needs / year

$15,996

Wants / year

$9,598

Savings / year

$6,398

Salary Intelligence

Financial pressure in Minneapolis

Rent alone would take 60% of take-home income. This salary creates significant financial pressure in this city — a $64,000 annual income or lower rent is needed to reach affordability.

Lifestyle score: 1.7/10 (Difficult)

Lifestyle Assessment

A $40,000 salary does not fully cover typical living expenses for a single adult in Minneapolis, Minnesota. Monthly costs exceed take-home pay by $50, indicating this income is insufficient for an independent lifestyle here without additional income or reduced spending.

Purchasing Power

Minneapolis's above-average cost of living (index: 1.17) means $40,000 provides the purchasing power of roughly $34,188 in an average-cost US city, or $40,342 in Austin. Moving to a lower-cost state could effectively increase your take-home by thousands.

State & National Benchmark

$40,000 is 21% below the Minnesota individual median of $50,400. Consider negotiating a higher salary or exploring higher-paying roles in this state.

State individual median

$50,400

-21%

State household median

$87,012

-54%

Tax reduction strategies

Maximize 401(k) Contributions — Up to $5,170 in federal tax (22% bracket)

Contribute to a Traditional IRA — Up to $1,540 in federal tax (22% bracket)

$40,000 vs. Minnesota income benchmarks

Individual median (Minnesota)

$50,400

-21% vs. this salary

Household median (Minnesota)

$87,012

-54% vs. this salary

Source: US Census Bureau ACS 2023

Related salary insights

Explore other salary levels in Minnesota

$40,000 $60,000 $100,000 $150,000 $200,000 $300,000

Reviewed by

Finance Editor

CPA, 10+ years in personal finance

Data Sources

•Tax calculations: IRS federal tax tables
•Rent data: HUD Fair Market Rents
•Cost-of-living index: C2ER / ACCRA Cost of Living Index

Data updated monthly using government datasets.