Minnesota Retirement Guide
Those looking for information about the “Land of 10,000 Lakes” and the best places to retire here will find everything they need to know about Minnesota within these pages. TopRetirements.com will give you the objective point of view of active adults when it comes to this Midwestern favorite. Updated Dec. 2016.
Overall
Outdoor recreation is top-notch here, with water, forests, and parks creating an idyllic and adventurous landscape. They are largely untouched, since nearly 60% live in the metropolitan area of Minneapolis-St.Paul. The Twin Cities are host to an active and internationally known art scene and renowned universities. The Minnesota population was just under 5.5 million in 2015 with a median age of 37.7.
Active adults looking for information about retirement cities like Duluth, Minneapolis, Northfield and Red Wing can find all they need here. You can also search Minnesota’s Wikipedia page for more information.
Twin Cities skyline
Climate
Minnesota’s continental climate makes it prone to temperate extremes; winters are cold and summers are hot. Blizzards, thunderstorms, tornadoes and high winds are not uncommon.
Per capita income and home prices
Median household income in 2011-14 was $61,492, about $8000 higher than the national median. Its MERIC index for cost of living is the 30th lowest of al the states. In late 2016, the Zillow Home Value Index was $198,300, slightly higher than the national index. The National Association of Realtors reported that the median selling price of a home in the Twin Cities metro was $240,300 in late 2016.
Taxes
Tax Burden: Minnesota’s state and local tax burden is the 8th highest in the nation at 10.8% of income.
Marginal Income Tax Rates. Minnesota’s individual tax income tax has 4 brackets, the highest taxes income of $259,420 (couples) at a very high rate of 9.85%
Retirement Income Exemptions. All retirement income is taxable, although people over 65 with limited incomes might get some exemptions.
Social security exemption. Minnesota applies the state income tax to Social Security benefits that are taxable at the federal level.
Sales Tax: State sales tax is 6.875%.
Property Taxes: At $1547 the state’s per capital property tax collections are the 15th highest in the nation. There is a property tax deferral program for residents 65 and older with household incomes of $60,000 or less, and a property tax refund program that you might be eligible for.
Estate and/or Inheritance Taxes. Minnesota has an estate tax, but no inheritance tax.
Link to Minnesota Department of Revenue
Certified Retirement Communities
Minnesota does not have any certified retirement community programs.
Best Retirement Communities
Minnesota is home to at least two active adult communities: Friendship Village of Bloomington and Village on the Cannon.
