Cost of Living in Watertown, MN

Get 300+ Local Insights for Any Address in Watertown, MN

Get Access to 300+ Local Data Points
B+
1%
Overall NAT. AVG.
4%
Goods & Services NAT. AVG.
12%
Housing NAT. AVG.
Date & Last Updated: This data reflects 2025 and was released from C2ER in January, 2026; this is the most current data available.
The cost of living index is based on a national average of 100. For example, if the cost of living is 90, then it is 10% lower than average. If the cost of living is 110, then it is 10% higher than average. The breakdown for each index is as follows: goods & services (33%), groceries (13%), health care (5%), housing (30%), transportation (9%) and utilities (10%). If the cost of living data was unavailable for this city, estimates based upon nearby cities were used.
Index Watertown Minnesota National
Cost of living10199100
Goods & Services96100100
Groceries102101100
Health care91102100
Housing112100100
Transportation9696100
Utilities9595100
Does this Area Fit Your Budget? Local Insights Report
  • Know the community before you call it home
  • Compare multiple areas side by side
  • Access over 300 data points for any address
Local Insights Report

Homes For Sale In Watertown, MN

property for sale

12175 County Road 20

Watertown, MN
property for sale

648 Hawthorne Ln

Watertown, MN
property for sale

1311 Balsam Ln

Watertown, MN
property for sale

175 Highview Cir

Watertown, MN
See the Newest Homes For Sale In Watertown, MN

Cost Of Living Quick Facts

  • The cost of living in Watertown is 2% higher than the Minnesota average
  • The cost of living in Watertown is 1% higher than the national average
  • Watertown housing is 12% higher than the national average
  • Minnesota general sales tax is 35% higher than the national average
  • Minnesota state income tax is 106% higher than the national average

Most Affordable Places to Live in and Around Watertown

See all the best places to live around Watertown

Compare Watertown, MN Cost of Living

City Image
    City Default Image
      vs
      Compare Neighborhoods & Addresses Local Insights Report

      Why stop at city-to-city? With Local Insights, you can compare neighborhoods, zip codes, or even exact addresses. Access 300+ hyperlocal data points—from schools and crime to housing and amenities—to see which area is the better fit.

      Local Insights Report
      How would you rate the cost of living in Watertown?
      Write a review to give others more information about this area.
      Is the cost of living increasing or decreasing in Watertown?
      Write a review to give others more information about this area.
      See all Watertown poll results

      The best places in Minnesota

      Here are the best places to live in MinnesotaSee the best places to live in WatertownCheck out the 10 safest cities in MinnesotaSafest Cities In The US
      Best Places in Minnesota

      Salary Calculator

      This is how much you would need to earn in
      Price difference in compared to
      Cost of living index
      Goods & Services index
      Groceries index
      Health care index
      Housing index
      Transportation index
      Utilities index

      Median Income & Debt-To-Income Ratio

      Median Income Per Year Per Month Max Budget (28% DTI) Max Budget (36% DTI)
      Owners$163,119$13,593$3,806$4,894
      Renters$42,387$3,532$989$1,272
      A good way to judge both the affordability of the housing and the cost of living in Watertown is by simply calculating the maximum that should be spent on housing, otherwise known as the debt-to-income ratio (DTI). The plan is to avoid spending more than 28 percent of the gross income on costs that pertain to housing and no more than 36 percent on all expenses and debts. Watertown has a median income of about $163,119 for people who own homes. Based on that number, a maximum of $3,806 should be spent on expenses related to housing. Renters have a slightly different median income, which is $42,387. Based on this average, renters should spend no more than $989 on all rental costs if they want to maintain a non-impoverished standard of living.

      Minnesota Sales Tax

      State General Sales Tax With Max Surtax
      Minnesota 6.875% 7.875%

      Minnesota Income Tax

      State Income Tax (Low) Income Tax (High)
      Minnesota 5.35% 9.85%

      Goods & Services

      Item Watertown National avg. Difference
      Haircut $29.45$27.626.6%
      Beauty Salon $41.84$51.1118.1%
      Toothpaste $4.03$4.091.5%
      Shampoo $1.96$1.5427.1%
      Movie $12.04$12.886.5%
      Yoga $25.72$19.6630.8%

      Groceries

      Item Watertown National avg. Difference
      Ground Beef $7.57$7.701.7%
      Fried Chicken $1.53$1.668.0%
      Milk $4.64$4.732.0%
      Potatoes $5.00$5.264.9%
      Pizza $13.48$12.765.6%
      Beer $9.61$10.558.9%

      Health Care

      Item Watertown National avg. Difference
      Optometrist $124.11$140.0611.4%
      Doctor $175.71$153.8214.2%
      Dentist $95.56$123.1522.4%
      Ibuprofen $11.80$11.730.6%
      Lipitor $18.84$23.6120.2%

      Housing

      Item Watertown National avg. Difference
      Home Price $414,942.00$326,622.0027.0%
      Avg. Mortgage Payment $1,910.71$2,480.2523.0%
      Apartment Rent $1,106.00$1,444.0023.4%

      Transportation

      Item Watertown National avg. Difference
      Gasoline $2.94$3.063.7%
      Tire Balancing $62.72$65.213.8%

      Utilities

      Item Watertown National avg. Difference
      All Electricity $205.04$220.126.8%
      Phone $194.30$195.710.7%
      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 Population Cost of Living Index National Avg.
      Lester Prairie, MN1,776918.7%
      Winsted, MN2,084918.7%
      Plato, MN236937.3%
      Glencoe, MN5,684963.6%
      Howard Lake, MN1,955972.8%
      Watertown, MN4,6461011.2%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      The Pinehills, MA4,64617171.5%
      Warwick, QC4,646n/a 
      Saint-Étienne-des-Grès, QC4,645n/a 
      Fort Pierce South, FL4,644990.8%
      Oconto, WI4,6438416.5%
      Watertown, MN4,6461011.2%
      Date & Last Updated: This data reflects 2025 and was released from C2ER in January, 2026; this is the most current data available.
      General
      For Professionals
      Follow Us
      AV on Twitter AV on Facebook
      © AreaVibes Inc. 2010-2026