Watertown cost of living index

In the event that the cost of living data was unavailable for this city, estimates based upon nearby cities were used. Each cost of living index is based on a national average of 100. If the amount is below 100, it is lower than the national average. If the amount is above 100, it is higher than the national average.
IndexWatertownMinnesotaNational
Cost of living index100102100
IndexWatertownMinnesotaNational
Goods & Services index110107100
Groceries index105107100
Health care index103108100
Housing index89101100
Transportation index10198100
Utilities index9387100
Here we can see a simple outline of the cost of living in Watertown, MN. As you can see, with the average cost of living in Watertown, MN being 100, that puts it 2% lower than the average of Minnesota and equal to our nation's average. This simple outline of the cost of living index was formulated using prices of: goods and services (weighted 33%), housing prices (weighted 30%), groceries (weighted 13%), utilities (weighted 10%), transportation (weighted 9%), and health care (weighted 5%). Thus, goods/services, along with housing influences the majority of the cost of living index. The price of daily goods and services is a valuable and reliable number to be aware of when considering the general price of the city's goods. In the case of Watertown, MN, the price of goods and services are 3% higher than the average of Minnesota as well as 10% higher than the nation's average.

Did you know?

  • The cost of living in Watertown is 2% lower than the Minnesota average.
  • The cost of living in Watertown is equal to the national average.
  • The cost of housing in Watertown is 11% lower than the national average.
  • Minnesota general sales tax is 35% higher than the national average.
  • Minnesota state income tax is 141% higher than the national average.

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Compare Watertown, MN Cost of living To Other Cities

Salary Calculator

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Health care index
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Use the salary calculator to compare your current income in Watertown, MN to any other city in the country. The calculator will tell you how much income you would need to make in a particular city to live at the same level based on the cost of living in each city. For example, if the cost of living in the city you are looking to move to is higher than that of Watertown, MN, then you would need to earn a higher salary in order to enjoy the same standard of living. To use the Watertown, MN salary calculator, enter the name of the new city, then move the slider to your current salary level. The salary calculator will do the rest and let you know if your salary would need to increase or decrease for the new city. You will also see a complete overview of the cost of living.

Median Income & Debt-To-Income Ratio

Median IncomePer YearPer MonthMax Budget (28% DTI)Max Budget (36% DTI)
Owners$78,300$6,525$1,827$2,349
Renters$25,833$2,153$603$775
A good way to judge both the affordability of the housing and the cost of living is by simply calculating the maximum that a person should spend on housing in Watertown, MN, otherwise known as the debt-to-income ratio (DTI). The safest way to live in the city is to avoid spending more than 28 percent of the gross income that one earns on costs that pertain to housing and no more than 36 percent on all expenses and debts. Watertown, MN has a median income of about $78,300 for people who own homes. Based on that number, a person should spend a maximum of $1,827 on expenses related to housing. Renters have a slightly different median income, which is $25,833. Based on this average, renters should spend no more than $603 on all of their rental costs if they want to maintain a non-impoverished standard of living.

Minnesota Sales Tax

StateGeneral Sales TaxWith Max Surtax
Minnesota6.875%7.875%

Minnesota Income Tax

StateIncome Tax (Low)Income Tax (High)
Minnesota5.35%9.85%
When considering the overall cost of living expenses in Watertown, MN, it's important to take into account the sales tax for Minnesota, as well as the rate for income tax in Minnesota. Goods and services sold to consumers in any state have some form of sales tax. Each state has its own tax code, which means that sales tax rates vary from state to state, ranging from over 7% in some states to as low as 0% in others. The maximum surtax for Minnesota is 7.875%, and the sales tax in the state of Minnesota is 6.875%. Alternatively, the tax imposed on your income by the state government is known as income tax. The rate for this tax also varies from state to state, and your rate is affected by your tax bracket, which is determined by your level of income. Income tax rates might be as high as 9%, down to as low as 0%. The range for income tax rates in Minnesota starts from 5.35% and goes up to 9.85%.

Goods & Services

ItemWatertownNational avg.Difference
Haircut $22.60$14.5954.9%
Beauty Salon $33.37$34.683.8%
Toothpaste $3.44$2.4739.1%
Shampoo $1.05$1.022.7%
Movie $9.80$9.870.7%
Bowling $4.06$4.397.6%

Groceries

ItemWatertownNational avg.Difference
Ground Beef $3.63$4.4818.9%
Fried Chicken $1.85$1.4626.4%
Milk $2.33$2.361.1%
Potatoes $3.12$3.061.9%
Pizza $10.58$9.2414.5%
Beer $8.48$8.631.8%

Health Care

ItemWatertownNational avg.Difference
Optometrist $82.75$99.7817.1%
Doctor $133.63$105.0327.2%
Dentist $84.81$88.704.4%
Ibuprofen $11.66$9.4123.9%
Lipitor $252.50$298.5015.4%

Housing

ItemWatertownNational avg.Difference
Home Price $166,400.00$175,700.005.3%
Avg. Mortgage Payment $1,221.08$1,081.0313.0%
Apartment Rent $685.00$920.0025.5%

Transportation

ItemWatertownNational avg.Difference
Gasoline $1.96$2.096.3%
Tire Balancing $54.71$45.2920.8%

Utilities

ItemWatertownNational avg.Difference
All Electricity$163.14$170.804.5%
Phone $24.99$28.2611.6%
Although the cost of living data is updated regularly, this cost of living information is to be used as estimates only as prices can change on an ongoing basis.

Nearby cities with low cost of living

City, StatePopulationCost of Living IndexNational Avg.
Plato, MN32994-6%
Lester Prairie, MN1,66695-5%
Winsted, MN2,32595-5%
Howard Lake, MN2,04995-5%
New Germany, MN42597-3%
Watertown, MN4,243100-0%

Cities with similar population

City, StatePopulationCost of Living IndexNational Avg.
Del Mar, CA4,242216116%
Temple, GA4,24491-9%
Desert Edge, CA4,24484-16%
Isle of Palms, SC4,24118585%
Tice, FL4,24586-14%
Watertown, MN4,243100-0%
Source: The Watertown, MN cost of living data displayed above is derived from the Council for Community and Economic Research (C2ER) for the fourth quarter of 2015.