Quick answer
Tennessee has lower average 1BR rent ($1,238/mo vs $1,380/mo). State income tax: Tennessee (None) vs Minnesota (Up to 9.85%) — on a $120K salary that's $11,820/year difference.
State Comparison · 2026
Minnesota vs Tennessee
Side-by-side on state income tax, rent, home prices, climate, and top metros — with specific dollar numbers for every claim.
Last updated: April 23, 2026
Minnesota vs Tennessee at a Glance
| Metric | Minnesota | Tennessee |
|---|---|---|
| Avg 1BR rent (major metros) | $1,380 | $1,238 ✓ |
| Avg median home price | $320K | $304K ✓ |
| Cheapest city | Minneapolis ($1,380) | Memphis ($980) ✓ |
| Priciest city | Minneapolis ($1,380) | Nashville ($1,520) |
| State income tax | Up to 9.85% | None ✓ |
| Avg walkability | 69/100 ✓ | 35/100 |
| Cities tracked | 1 | 4 |
✓ marks the lower or more favorable value. Averages use the major metros we track in each state.
State Income Tax: Real Savings
What the rate gap actually looks like in your paycheck. Lower rate: Tennessee (None).
Salary $80K
$7,880
/year saved in Tennessee
Salary $120K
$11,820
/year saved in Tennessee
Salary $200K
$19,700
/year saved in Tennessee
Calculation uses the effective state rate difference × gross salary. Doesn't include property tax, sales tax, or federal impact.
Deep Dive: Each State
Minnesota (MN)
Tax reality
Minnesota has a progressive state income tax topping at 9.85% for income over $185K. Property tax is moderate (~1.1% effective). No estate tax under $3M. Not a tax-friendly state for high earners, but quality-of-public-services reflects it.
Top cities (1 tracked)
Top drawbacks
- ✕Winters are the defining drawback. -10°F, -20°F wind chills, 4+ months of snow cover, and limited daylight. December sunset is at 4:30pm. This is not exaggerated.
- ✕State income tax is progressive and tops out at 9.85% — high relative to the Midwest average.
- ✕Summer is short but genuinely lovely — 75-85°F, humid but not oppressive, 15+ hours of daylight. The flip side is it lasts maybe 10 weeks.
Tennessee (TN)
Tax reality
Tennessee has no state income tax on W-2 wages or investment income. Sales tax is 7% state + local, totaling 9.25-9.75% in most metros — one of the highest sales tax rates in the US. No estate tax. Property tax is low (~0.7% effective in Nashville, lower in rural areas).
Top cities (4 tracked)
Top drawbacks
- ✕Sales tax 9.25%+ is punishing. Every purchase stings — gas, groceries (yes, groceries are taxed here), and retail.
- ✕Nashville traffic has become very bad as the metro has grown. I-24 and I-65 corridor are regularly backed up; the state has underinvested in transit.
- ✕Summers are humid subtropical — regular 90°F + 75% humidity from June through September, and thunderstorm season can be intense.
Frequently Asked Questions
Is Minnesota or Tennessee cheaper to live in?
Tennessee has lower average 1BR rent across major metros — $1,238/mo vs $1,380/mo in Minnesota, a $142/mo difference. Home prices: Tennessee median is $304K vs $320K.
Minnesota vs Tennessee: which has lower state income tax?
Tennessee has lower state income tax (None) vs Up to 9.85% in Minnesota. On an $80K salary that's $7,880/year in savings. On $200K, savings grow to $19,700/year.
Should I move from Minnesota to Tennessee?
Minnesota has a progressive state income tax topping at 9.85% for income over $185K. Property tax is moderate (~1.1% effective). No estate tax under $3M. Not a tax-friendly state for high earners, but quality-of-public-services reflects it.
What are the best cities in Minnesota vs Tennessee?
Minnesota's largest metros include Minneapolis. Tennessee's largest metros include Nashville, Memphis, Chattanooga. Cost of living varies significantly within each state — a Minnesota suburb can be 40% cheaper than its flagship city, and vice versa.