Lifestyle
Minnesota offers a wide range of retirement destinations, from charming college towns like Northfield to nature-focused communities such as Ely. Each location offers its own mix of lifestyle, affordability, and access to outdoor recreation.If you can handle long, difficult winters—or, perhaps, even enjoy them and the various outdoor activities they bring—Minnesota could be an ideal state for your retirement. Towns and cities such as Northfield and Mankato offer excellent opportunities for continued education as well as top-notch healthcare facilities. The Mayo Clinic, which has auxiliary locations throughout the state, is one of the best in the world—seniors concerned about their health or in need of specialists will find all they need through its network. In addition, the North Star State is home to dozens of lauded performing arts venues, museums, and other cultural institutions. If this sounds appealing, read on to discover the 8 best cities to retire to in Minnesota.
C.E Larusso
Published March 5th, 2026
Updated March 5th, 2026
C.E Larusso
•
Published March 5th, 2026
•
Updated March 5th, 2026
Table of Contents
If you can handle long, difficult winters—or, perhaps, even enjoy them and the various outdoor activities they bring—Minnesota could be an ideal state for your retirement. Towns and cities such as Northfield and Mankato offer excellent opportunities for continued education as well as top-notch healthcare facilities. The Mayo Clinic, which has auxiliary locations throughout the state, is one of the best in the world—seniors concerned about their health or in need of specialists will find all they need through its network. In addition, the North Star State is home to dozens of lauded performing arts venues, museums, and other cultural institutions. If this sounds appealing, read on to discover the 8 best cities to retire to in Minnesota.
Is Minnesota a good place to live for retirees?
Minnesota is known for its stunning natural beauty, with lakes, rivers, forests and more to enjoy. Active, outdoor-loving retirees can hike, walk, backpack, camp, and picnic in the state’s many parks and green spaces.
That said, some of these activities are seasonally-restricted. Minnesota is a very cold state, with long, harsh winters—if this climate sounds too extreme for you, you might want to consider a warmer state.
The North Star State is also well-known for its many cultural activities, ranging from museums to music festivals. The Twin Cities Jazz Festival and the Minnesota State Fair are two major annual events.
Finally, retirees are often drawn to the state for its excellent medical facilities. The Mayo Clinic, often regarded as one of the best medical centers in the world, is in Rochester and has auxiliary hospitals and clinics throughout the state.
Seniors desiring a lower cost-of-living, access to five-star health facilities, and plentiful outdoor recreation might enjoy Minnesota as a retirement state.
Is Minnesota tax-friendly for seniors?
Minnesota is not considered a tax-friendly state. The North Star State partially taxes Social Security income—it’s one of only nine states that do so. There is an income threshold, however; only those with adjusted gross incomes over $82,190 ($105,380 for those married and filing jointly) will see their Social Security taxed.
The state also taxes other forms of retirement income, such as IRAs and 401(k) distributions. The income tax rate ranges from 5.35% to 9.85%, and there is no estate tax.
Do seniors in Minnesota pay property taxes over 65?
Those over 65 pay property taxes in Minnesota, however there is a deferral program for seniors to defer a portion of your taxes, if you qualify. To qualify, you must:
- Be 65 or older the year you apply
- Have a household income under $96,000
- Have owned and lived in your home for the last 5 years
- Verify your home has been homesteaded for 5 years
- Not have any reverse mortgages, life estates, state or federal tax liens, or judgment liens on your property
- Verify that any other liens against your property are less than 75% of the estimated market value
What benefits do seniors get in Minnesota?
Aside from the property tax deferral program outlined above, seniors in Minnesota can enjoy some of these benefits:
- NAPS (Nutritional Assistance for Program Seniors)—qualifying adults can receive a free food package once per month
- Help at Your Door—a non-profit service that will deliver groceries to seniors with mobility issues
- Senior LinkAge Line—a free telephone service to connect older Minnesotans to get answers and help related to Medicare, prescription drugs, caregivers, and more
Where is the best place to retire in Minnesota?
Most cities and towns in Minnesota are rich with natural beauty, adjacent to lakes and rivers. The state prides itself on its many green spaces, so locals have ample opportunities for hiking, picnicking, camping, and more. In short, if you are an outdoor enthusiast, it’s hard to go wrong in Minnesota, and the decision may come down to local cultural offerings, the size of the town or city, and access to airports, major cities, and healthcare.
1. Rochester
CITY POPULATION: 285,300
SHARE OF POPULATION 65+: 17%
COST OF LIVING FOR RETIREES: 2% above the national average
MEDIAN HOME VALUE: $329,353
MEDIAN RENT: $1,421
TAX RATING FOR RETIREES: Not Tax Friendly
Frequently on lists of best places to retire in the U.S., Rochester is a smaller city that has a lot to offer. It’s home to nearly 3,000 acres of park land and a bustling downtown area—both will keep seniors physically and socially active. In addition, it’s home to one of the best-known and respected hospitals in the world, the Mayo Clinic.
2. St. Cloud
CITY POPULATION: 72,145
SHARE OF POPULATION 65+: 14%
COST OF LIVING FOR RETIREES: 4% below the national average
MEDIAN HOME VALUE: $248,685
MEDIAN RENT: $1,099
TAX RATING FOR RETIREES: Not Tax Friendly
Just an hour away from the Twin Cities, retirees are drawn to St. Cloud for its very low cost-of-living, with the median home prices well below the national average. The city is also home to the Paramount Center for the Arts, which hosts concerts, plays, and art exhibitions throughout the year.
3. Grand Rapids
CITY POPULATION: 11,244
SHARE OF POPULATION 65+: 26%
COST OF LIVING FOR RETIREES: 19% below the national average
MEDIAN HOME VALUE: $270,603
MEDIAN RENT: $1,175
TAX RATING FOR RETIREES: Not Tax Friendly
Grand Rapids boasts stunning natural beauty, with Lake Michigan only a 30-minute drive away for beach trips. The city is very walkable and has a deep sense of community, with over 40% of residents actively involved in community service. It’s also very affordable, with both housing, food, and other every day expenses costing less than the national average.
4. Mankato
CITY POPULATION: 46,459
SHARE OF POPULATION 65+: 13%
COST OF LIVING FOR RETIREES: 13% below the national average
MEDIAN HOME VALUE: $297,155
MEDIAN RENT: $1,400
TAX RATING FOR RETIREES: Not Tax Friendly
Mankato’s downtown has gone through a revitalization, and now bustles with new shops, restaurants, cultural venues, and more. The mid-sized city is only 90 minutes away from the Twin Cities, giving retirees easy access to a larger metropolis but able to return home to a quieter place. The Mayo Clinic has a hospital outpost there, which offers excellent healthcare services through its hospital and a system of in-city clinics.
5. Little Falls
COUNTY POPULATION: 9,206
SHARE OF POPULATION 65+: 26%
COST OF LIVING FOR RETIREES: 16% below the national average
MEDIAN HOME VALUE: $265,532
MEDIAN RENT: $1,100
TAX RATING FOR RETIREES: Not Tax Friendly
Little Falls is notable as being the childhood home of Charles Lindbergh, and there are many local attractions to celebrate this fact, including Charles A. Lindbergh State Park, where residents can picnic, camp, and hike. The city is a short drive to St. Cloud, and has its own popular senior center where retirees take classes, play bingo, and socialize.
6. Northfield
CITY POPULATION: 21,316
SHARE OF POPULATION 65+: 16%
COST OF LIVING FOR RETIREES: 6% below the national average
MEDIAN HOME VALUE: $379,132
MEDIAN RENT: $1,124
TAX RATING FOR RETIREES: Not Tax Friendly
Northfield is often thought of as a college town, with the liberal arts school of St. Olaf calling it home, but it has plenty to offer retirees. The Cannon River runs through Northfield, and the town has plentiful bike and walking paths. St. Olaf College offers continuing education classes, and while Northfield has its own hospital, seniors who need specialists only need to drive 50 miles to get to the Mayo Clinic in Rochester.
7. Hutchinson
CITY POPULATION: 14,708
SHARE OF POPULATION 65+: 22%
COST OF LIVING FOR RETIREES: 15% below the national average
MEDIAN HOME VALUE: $290,457
MEDIAN RENT: $1,145
TAX RATING FOR RETIREES: Not Tax Friendly
Those looking for a small town with a tight-knit community to call home should consider Hutchinson. The town, while quaint and quiet, has many shops, art galleries, and other attractions, including a historic Deco movie theater. Many outdoor enthusiasts are drawn to the area for the Luce Line Trail, a 63-mile long path for walkers, hikers, and cyclists.
8. Ely
CITY POPULATION: 3,214
SHARE OF POPULATION 65+: 27%
COST OF LIVING FOR RETIREES: 15% below the national average
MEDIAN HOME VALUE: $269,262
MEDIAN RENT: $1,190
TAX RATING FOR RETIREES: Not Tax Friendly
Ely draws many environmental and animal enthusiasts. It’s home to the North American Bear Center, which educates the public on the bears that live in the region. The International Wolf Center is also located in Ely, and showcases the importance of wolves to the state. There are several state parks for hiking, camping, and more—Bass Lake Trail is known as a location for wild blueberry picking.
Bottom Line
Minnesota, while one of only nine states that tax Social Security, does have rich natural beauty, excellent medical facilities, and some tax-advantageous exceptions for lower-income seniors. Its towns and cities have tight-knit communities, with bustling cultural activities that appeal to a range of interests. Retirees can choose from one of many places, such as Mankato or Northfield, to consider for their golden years, depending on their budget, priorities, and needs. To decide where in Minnesota you can afford to comfortably retire, it’s best to speak to a financial advisor at Retirable to review your investments and budget.
Share this advice
A professional content writer, C.E. Larusso has written about all things home, finance, family, and wellness for a variety of publications, including Angi, HomeLight, Noodle, and Mimi. She is based in Los Angeles.
Share this advice
A professional content writer, C.E. Larusso has written about all things home, finance, family, and wellness for a variety of publications, including Angi, HomeLight, Noodle, and Mimi. She is based in Los Angeles.