Minnesota Salaries 2025
Corporate powerhouse with Midwest's highest quality of life
Median Household Income (#8 in USA)
Minnesota Salary Overview 2025
Minnesota defies Midwestern stereotypes with the 8th highest median household income nationally ($80,400), an extraordinary concentration of Fortune 500 headquarters, and quality-of-life rankings that consistently place it among America's best states. The Twin Cities metro punches far above its weight, hosting 16 Fortune 500 companies—more per capita than any other metro.
The corporate roster reads like a who's who of American business: UnitedHealth Group (#5), Target, Best Buy, 3M, General Mills, U.S. Bancorp, and Medtronic call Minnesota home. This concentration creates exceptional career opportunities in healthcare, retail, financial services, and medical devices. The Mayo Clinic in Rochester adds world-renowned healthcare.
Minnesota's tradeoff is taxes—the top rate of 9.85% is among the nation's highest. However, the combination of strong wages, reasonable cost of living (98 index), excellent schools, and genuine quality of life keeps attracting professionals. Those who embrace winter find a state that invests in its communities and delivers genuine livability. For comprehensive salary data, see salary trends 2025.
Minnesota Salary Snapshot
| Metric | Minnesota | National Average |
|---|---|---|
| Median Household Income | $80,400 | $74,580 |
| Mean Household Income | $103,000 | $97,300 |
| Per Capita Income | $42,000 | $37,638 |
| Minimum Wage (2025) | $10.85/hr | $7.25/hr (federal) |
| Cost of Living Index | 98 | 100 |
| Top Income Tax Rate | 9.85% | Varies |
Salaries by Minnesota Region
Minneapolis-St. Paul Metro – Twin Cities
Median Household Income: $88,000
The Twin Cities metro (3.6 million) drives Minnesota's economy with extraordinary corporate density. UnitedHealth Group is America's largest company by revenue headquartered in the Midwest. Target, Best Buy, General Mills, 3M, and Medtronic add Fortune 500 headquarters. Corporate salaries are nationally competitive: software engineers $95,000-$155,000, finance professionals $70,000-$150,000, marketing $60,000-$130,000.
Minneapolis offers urban living with lakes, trails, and cultural amenities. St. Paul adds historic character. Suburbs like Edina, Minnetonka, and Eden Prairie provide family-oriented communities with excellent schools. Housing ($360,000 metro median) is affordable for income levels.
Rochester – Mayo Clinic City
Median Household Income: $78,000
Rochester exists largely because of Mayo Clinic—the world's largest integrated medical practice and a top research institution. Healthcare careers offer exceptional compensation and prestige. Physicians $300,000-$600,000+, researchers $80,000-$160,000, nurses $65,000-$90,000, IT $70,000-$130,000. The city has excellent schools and family orientation but limited diversity of employment.
Duluth – Northern Gateway
Median Household Income: $55,000
Duluth offers Lake Superior beauty at affordable prices ($250,000 median home). Healthcare, education (University of Minnesota Duluth), and tourism drive employment. Limited professional opportunities but exceptional outdoor lifestyle. Increasingly attractive for remote workers.
St. Cloud
Median Household Income: $58,000
St. Cloud State University and healthcare anchor this regional center. Very affordable ($230,000 median home) with growing commuter population to Twin Cities.
| Region | Median Income | Median Home | Key Industries |
|---|---|---|---|
| Minneapolis-St. Paul | $88,000 | $360,000 | Corporate HQs, Healthcare, Tech |
| Edina/Minnetonka | $120,000 | $550,000 | Corporate, Professional Services |
| Rochester | $78,000 | $310,000 | Mayo Clinic, Healthcare |
| Duluth | $55,000 | $250,000 | Healthcare, Tourism, Education |
| St. Cloud | $58,000 | $230,000 | Education, Healthcare |
Top Paying Industries in Minnesota
Healthcare & Medical Devices
UnitedHealth Group, Mayo Clinic, Medtronic, and numerous health systems make Minnesota a healthcare powerhouse. UnitedHealth corporate roles $80,000-$200,000+, Medtronic engineers $85,000-$150,000, Mayo Clinic physicians $300,000-$600,000+. The state has one of the nation's highest concentrations of health-related employment.
Retail Corporate
Target headquarters (Minneapolis) and Best Buy headquarters (Richfield) create substantial retail corporate employment—merchandising, supply chain, marketing, technology. Salaries are competitive: software engineers $90,000-$150,000, merchants/buyers $60,000-$120,000, supply chain $65,000-$130,000. Target is known for strong culture and benefits.
Financial Services
U.S. Bancorp, Ameriprise, and numerous regional financial institutions provide banking and wealth management employment. Analysts $65,000-$110,000, portfolio managers $100,000-$250,000, IT professionals $80,000-$140,000. Minneapolis is a significant financial center.
Technology
Beyond corporate tech roles, Minneapolis has growing startup scene and major company offices. Software engineers $90,000-$155,000, data scientists $95,000-$145,000. 3M's research and development adds technical employment. Not Bay Area scale but legitimate and growing.
Food & Agriculture
General Mills, Cargill (largest private company in U.S.), Land O'Lakes, and Hormel create food industry employment. R&D, marketing, and corporate roles pay well. Food scientists $70,000-$120,000, brand managers $80,000-$150,000.
| Industry | Entry Level | Mid-Career | Senior Level |
|---|---|---|---|
| Healthcare (UHG Corporate) | $70,000 | $110,000 | $180,000+ |
| Medical Devices (Medtronic) | $75,000 | $110,000 | $155,000+ |
| Software Engineering | $80,000 | $115,000 | $160,000+ |
| Healthcare (Mayo Physicians) | $300,000 | $420,000 | $600,000+ |
| Retail Corporate | $60,000 | $95,000 | $150,000+ |
Minnesota Tax Analysis
State Income Tax Brackets (2025)
| Taxable Income (Single) | Tax Rate |
|---|---|
| $0 – $31,690 | 5.35% |
| $31,691 – $104,090 | 6.80% |
| $104,091 – $193,240 | 7.85% |
| $193,241+ | 9.85% |
Minnesota's top rate is among the nation's highest. High earners face significant state tax burden.
Tax Comparison
| Salary | MN Tax | WI Tax | SD Tax |
|---|---|---|---|
| $75,000 | ~$4,600 | ~$4,100 | $0 |
| $100,000 | ~$6,600 | ~$5,800 | $0 |
| $150,000 | ~$11,000 | ~$9,200 | $0 |
| $250,000 | ~$20,500 | ~$16,000 | $0 |
Minnesota taxes are notably higher than neighboring states. South Dakota (0%) attracts some high earners who can work remotely or relocate businesses.
Property Tax: Minnesota property taxes average 1.08%—moderate.
Sales Tax: 6.875% state rate plus local additions (7-8% typical).
Minnesota Cost of Living Analysis
| Expense | Minnesota | National Avg |
|---|---|---|
| Housing Index | 95 | 100 |
| Median Home Price | $330,000 | $420,000 |
| Median Rent (2BR) | $1,350 | $1,400 |
| Groceries Index | 98 | 100 |
| Utilities Index | 95 | 100 |
| Healthcare Index | 95 | 100 |
Housing by Area
| Area | Median Home | Rent (2BR) |
|---|---|---|
| Minneapolis | $340,000 | $1,550 |
| St. Paul | $290,000 | $1,350 |
| Edina | $650,000 | $1,900 |
| Eden Prairie | $480,000 | $1,700 |
| Rochester | $310,000 | $1,300 |
| Duluth | $250,000 | $1,100 |
Minnesota offers excellent value: high wages with reasonable housing costs. An $85,000 salary provides lifestyle equivalent to $110,000+ in many coastal metros.
Highest Paying Jobs in Minnesota 2025
| Occupation | Average Salary | Top 10% Earn |
|---|---|---|
| Physicians (Mayo Clinic) | $380,000 | $600,000+ |
| Healthcare Executives | $220,000 | $400,000+ |
| IT Directors | $155,000 | $205,000+ |
| Software Architects | $150,000 | $195,000+ |
| Medical Device Engineers | $115,000 | $160,000+ |
| Dentists | $175,000 | $270,000+ |
| Financial Managers | $130,000 | $190,000+ |
| Pharmacists | $125,000 | $150,000+ |
Frequently Asked Questions
Are Minnesota taxes really that high?
Yes, the top rate of 9.85% is among the nation's highest. However, the tax funds excellent schools, infrastructure, and services that contribute to quality of life. For most professionals, higher wages and lower cost of living offset much of the tax burden. High earners feel it most acutely.
How bad are the winters?
Cold. Minneapolis averages -2°F in January with significant snow. Wind chill can reach -30°F or colder. However, Minnesotans are prepared—buildings are well-heated, skyway systems connect downtown, and winter activities (skiing, ice fishing, hockey) are embraced. Those who adapt find winter manageable; those who don't should consider elsewhere.
Is Minnesota good for families?
Exceptional. Schools consistently rank among the nation's best. Parks, lakes, and outdoor recreation are accessible. Communities are family-oriented. The combination of good wages, affordable housing, and excellent public services makes Minnesota one of the best states for raising children.
Twin Cities vs. Rochester?
Twin Cities offers diverse economy, urban amenities, and career mobility across industries. Rochester is essentially a Mayo Clinic company town—exceptional for healthcare careers but limited otherwise. Most professionals prefer Twin Cities for career flexibility; those committed to Mayo find Rochester excellent.
Why do Fortune 500 companies stay in Minnesota?
Educated workforce, quality of life for executives and employees, business-friendly environment despite taxes, and historical inertia. The concentration creates a virtuous cycle—talented people come for opportunities, making it easier to attract more companies. Minneapolis punches above its weight as a corporate center.