There’s a lot to think about when moving to Minnesota from Alaska. From differences in the cost of living to insurance premiums along with getting over to the Minnesota DMV to transfer your Alaska driver’s license and vehicle registration, you’ll want to do some budgeting and planning before you make the move.
Relocalate.com has done the heavy lifting for you. Our expert researchers have compiled the key things you need to know when moving to Minnesota from Alaska. Find out what you can expect to pay in federal and Minnesota state taxes, whether you’ll be spending more or less in key cost of living categories, and how long you’ll have to get a new driver’s license and car registration. Plus, you can even get a head start on saving the most money when you move by comparing free quotes for health coverage, car insurance, home/renters insurance, and more.
License & Registration
Transfer your Alaska driver’s license to Minnesota within 60 days.
Transfer your vehicles & get Minnesota license plates within 60 days.
On this page, you’ll be able to:
- See how the cost of living compares for Minnesota and Alaska.
- Estimate how much more or less you can expect to pay in state and federal income taxes after you move to Minnesota.
- Find out what to expect when it comes to Minnesota property taxes, buying a home, and home insurance premiums.
- Learn whether you’ll be able to save some money or have to spend a little more in key cost of living categories including groceries, transportation, housing, and healthcare.
- Find out what you’ll need to do with the Minnesota DMV to transfer your Alaska driver’s license and vehicle registration. (And how long you’ll have to do it.)
- Estimate how much it will cost to move from Alaska to Minnesota.
- BONUS: Start saving money today by comparing free quotes for all your new insurance policies in Minnesota.
Moving to Minnesota from Alaska Checklist
- 1. Estimate the cost of the move.
- 2. Update your insurance policies.
- 3. Be prepared to transfer your Alaska license & registration to Minnesota.
- 4. Budget and prepare for cost of living changes.
- 5. Change your address and forward your mail through USPS.
- 6. Register to vote.
- 7. Update your new address with your banks, loans, and other accounts.
- 8. Set up your utilities and services at your new home.
Find some more tips and to-dos for Moving to Minnesota here.
Cost of Moving from Alaska to Minnesota
Unfortunately moving can be expensive. Moving to a brand new state usually comes with some extra costs.
Use this moving cost calculator to get a rough idea of how much your move from Alaska to Minnesota will cost.
The rough distance between Minnesota and Alaska is 2,479 miles. We’ll use that for our calculations. Select the size of your home that you’ll be moving to get an idea of the costs.
Moving Cost Calculator: Alaska to Minnesota
Remember, this is just a rough estimate. The cost of your move will vary depending on the company you choose, your belongings, and other circumstances.
Update Your Insurance Policies for Coverage in Minnesota
Don’t wait! Update your car insurance coverage for Minnesota
When you move to Minnesota, you’ll want to make sure that you’ll be covered for all of life’s unexpected situations. That means updating your insurance policies with your new address and the minimum requirements for Minnesota.
Minnesota Car Insurance
One of the first policies you’ll want to update when you move is going to be your car insurance coverage.
In Minnesota, the minimum liability coverage is $30,000 bodily injury liability per person, $60,000 bodily injury liability per accident, $10,000 property damage liability per accident, $25,000 uninsured/underinsured motorist coverage per person, $50,000 uninsured/underinsured motorist coverage per accident, $40,000 personal injury protection.
Average Cost of Minimum Coverage
$585
On average, the annual premium for a minimum liability coverage policy is higher in Minnesota. You’ll likely pay more for car insurance in Minnesota than you did in Alaska.
Average Cost of Full Coverage
$1,760
On average, the annual premium for a full coverage auto insurance policy is lower in Minnesota. You’ll likely pay less for full coverage in Minnesota than you did in Alaska.
Do you own a motorcycle?
Minnesota Home & Renter’s Insurance
Whether you’ll rent or own your new home, you’ll want to make sure you have the right coverage when you arrive.
Let’s face it, accidents happen during a move. Make sure you have the coverage you need to protect your belongings and your house.
Average Cost of Homeowner’s Insurance
$1,930
You can usually expect that the annual premium for home insurance will be higher in Minnesota. You’ll likely pay more for your home insurance policy in Minnesota than you did in Alaska.
Will you own or rent your home?
Minnesota Health Insurance
You’ll also need to make sure that you and your family have health coverage once you arrive in Minnesota.
If you’ll be keeping your job when you move, be sure to ask your employer about any implications for your current health insurance policy.
You’ll need to find out which hospitals and plans are available near your new home. Spend some time researching providers in your area.
Healthcare Costs in Minnesota
Lower
Generally, healthcare costs are lower in Minnesota. You’ll likely pay less for healthcare in Minnesota than you did in Alaska.
Will you be keeping health insurance with your current employer?
Find Health Coverage ➜
Department of Motor Vehicles (DMV) Tasks when Moving to Minnesota from Alaska
Transfer your Alaska Driver’s License
within 60 days.
After you’ve moved to Minnesota, you’ll need to get a valid driver’s license.
Transfer your Alaska Car Registration
within 60 days.
You’ll also need to transfer your vehicle registration and get Minnesota license plates.
When you become a resident of Minnesota, you’ll need to transfer your Alaska driver’s license and vehicle registration.
You’ll also need to update your car insurance policies so that they meet the minimum requirements for Minnesota. Sometimes this can come with a rate hike, so it’s always a smart idea to shop around.
The minimum liability coverage you’ll need in Minnesota is $30,000 bodily injury liability per person, $60,000 bodily injury liability per accident, $10,000 property damage liability per accident, $25,000 uninsured/underinsured motorist coverage per person, $50,000 uninsured/underinsured motorist coverage per accident, $40,000 personal injury protection.
You can start comparing car insurance quotes for Minnesota for free right here on Relocalate.com.
Transfer Your Alaska Driver’s License to Minnesota
Minimum Age for a Minnesota Driver’s License
17 years old
A standard Minnesota driver’s license is available to residents who are at least 17 years old.
Minnesota Driver’s License Expires
every 4 years
You’ll need to renew your driver’s license every 4 years.
Minnesota Driver’s License Cost
$25.25
A driver’s license will cost around $25.25.
One of the first things you’ll want to do after becoming a resident of Minnesota is to get a driver’s license.
In fact, new residents should apply for their Minnesota driver’s license within 60 days.
In Minnesota, driver’s licenses are issued by the DVS.
To apply, you’ll need to:
- Complete the Minnesota Driver’s License Application.
- Surrender your Alaska driver’s license.
- Present the necessary proof of identity and residency with your new Minnesota address.
- Pass any required testing.
- Take a photo.
- Pay the driver’s license fee.
After applying and passing any necessary tests, you’ll receive a temporary paper license. The Minnesota DVS will mail you your new license, and it should arrive within a few weeks.
For official information and for details about scheduling appointments, visit https://onlineservices.dps.mn.gov/EServices/_/.
Minnesota Driver’s License Knowledge Exam
Total Questions on the Minnesota Driver’s License Test
40 total questions
The Minnesota knowledge exam will typically consist of 40 total questions that are based on the driver’s handbook.
Passing Score
80%
You’ll need to score 80% to pass the test.
When you transfer your Alaska license to Minnesota, you should be prepared to pass the driver’s license written exam.
While not every applicant will be required to take the test, it is still a good idea to brush up on traffic laws in Minnesota.
Before you visit the DVS, take some time to study the official driver’s handbook for Minnesota. While many traffic laws and safety rules are universal from state to state, there are some specifics that may be a little different.
Assuming your Alaska driver’s license is valid and unexpired, you should not need to take the Minnesota driving test.
Is your Alaska driver’s license valid?
One potential hang up to be aware of is around the validity of your Alaska driver’s license.
To make things as easy as possible, your Alaska license should be valid when you apply for a license in Minnesota.
Ideally what this means is that you should clear any issues with the Alaska DMV BEFORE you move.
For example:
- If your Alaska driver’s license is lost or damaged, you should replace it before moving.
- If your Alaska driver’s license is suspended or revoked, you should try to reinstate it before you move.
If your Alaska driver’s license is expired when you go to apply for your Minnesota license, it’s possible that the DVS will treat it like a brand new application, which may require a written exam and a road test, plus any other requirements for new drivers.
The bottom line: Try to take care of any issues with your Alaska driver’s license BEFORE you move and visit the Minnesota DMV.
Transfer Your Car Registration from Alaska to Minnesota
If you’re going to bring your car with you when you move, you’ll also need to transfer your Alaska registration to Minnesota.
Vehicle registration and titles are handled by the Minnesota DVS.
You can find more specific details for your vehicle registration and official information at https://dps.mn.gov/divisions/dvs/Pages/default.aspx
Minnesota Registration Fee Basis
value-base
Minnesota vehicle registration fees are generally calculated by value-base.
Registration Base Fee Estimate
Varies
Additional fees may vary based on vehicle type as well as any local fees and taxes.
Minnesota Registration Expiration
every year
In Minnesota, you’ll need to renew your registration every year.
Front License Plates
Minnesota requires that vehicles display a front license plate.
Vehicle Safety Inspections
There is typically no vehicle safety inspection required in Minnesota.
Smog & Emissions Testing
Emissions testing is not required for vehicles registered in Minnesota.
New residents in Minnesota are required to transfer their out-of-state vehicle registration within 60 days.
When moving to Minnesota with vehicles from Alaska, you should be prepared to:
- Complete an application for Minnesota registration and title.
- Present your current registration documents from Alaska.
- Provide any other necessary proof of ownership documents (title, lease agreement, lienholder information, etc.)
- Pass any necessary vehicle inspections required for Minnesota registration.
- Have a valid Minnesota insurance policy for your vehicles.
- Pay the registration fees.
Notify the Alaska DMV
While it’s not always a requirement, it can be worthwhile to update your address with the Alaska DMV and notify them that you have moved out of the state.
This can often be done on the DMV website, and will prevent you from receiving any renewal notices for your old driver’s license and registrations.
Taxes in Minnesota vs Alaska
Differences in taxes are a big consideration in any state to state move.
Unfortunately, it’s not all black and white. In order to get the full picture, it’s important to consider all of your potential tax burdens when moving from Alaska to Minnesota including state income tax, property taxes, and sales tax.
Plus, you’ll need to think about how the overall cost of living on key spending categories is going to compare. More on that below.
For example, if you’re a homeowner, it’ll be smart to look at both income tax differences, property tax burdens, as well as average home prices to get a more accurate idea of your tax savings or hike once you move to Minnesota.
We’ll cover some key differences in your tax savings and tax hikes when moving to Minnesota from Alaska.
For simplicity’s sake, we’ll be comparing effective tax rates, which simplify the marginal tax rates and tax brackets in each state to look at the estimated average total tax you may be paying.
Note that your tax situation may be much different than the estimates provided here. Use these as a high-level comparison tool.
Federal & State Income Taxes when Moving to Minnesota from Alaska
Overall, you’ll likely be looking at an income tax hike when moving to Minnesota from Alaska.
Minnesota Income Tax (effective rates)
4.66% (single) & 4.72% (joint)
Minnesota has a state income tax with an effective rate of 4.66% for single filers, and 4.72% for married couples filing jointly.
Effective Rates: Federal + State Income Taxes
21.94%
On average, the effective income tax rate (state + federal) is higher in Minnesota. You’ll likely pay more in income tax in Minnesota than you did in Alaska.
Tax Comparison Calculator
Effective income tax rates (Federal + State):
- Minnesota: 21.94% (single), 21.28% (joint)
- Alaska: 17.10% (single), 16.25% (joint)
In Minnesota, your tax would be . In Alaska, your tax would be .
You would pay more in than in .
When comparing your overall tax burdens between states, it can help to look at both the state and federal income tax rates.
Remember, this comparison is looking at the effective rates in order to simplify things.
Here’s a high level look at how your effective tax rates may be different after you move to Minnesota from Alaska
- State Income Tax (single filers): 4.66% in Minnesota vs 0.00% in Alaska
- State Income Tax (joint filers): 4.72% in Minnesota vs 0.00% in Alaska
- Federal + State Income Tax (single filers): 21.94% in Minnesota vs 17.10% in Alaska
- Federal + State Income Tax (joint filers): 21.28% in Minnesota vs 16.25% in Alaska
Sales Tax in Minnesota vs Alaska
Next, it’s helpful to consider the differences in sales tax.
Sales tax is a consumption tax you pay when you buy goods and services. It is typically calculated as a percentage of the final price you pay.
Note that many states have a state-wide sales tax and local governments and municipalities can charge an additional sales tax on top of that. This comparison looks at the state-wide sales tax.
Minnesota Sales Tax
6.88%
Minnesota has a state sales tax rate of 6.88%.
The sales tax rate is higher in Minnesota. You’ll likely pay more on sales tax in Minnesota than you did in Alaska.
Property Taxes in Minnesota vs Alaska
If you’re a homeowner, or plan to buy a home in Minnesota, it’s also a good idea to take a look at the difference in property taxes and home values.
Minnesota Property Tax Estimate
1.12%
The property tax rate is lower in Minnesota. You’ll likely pay less for property taxes in Minnesota than you did in Alaska.
Home Prices in Minnesota
$223,900
On average, the average home price is lower in Minnesota. You’ll likely pay less for a house in Minnesota than you did in Alaska.
This is also a good time to back sure you are getting the best deal on your Minnesota homeowner’s insurance policy.
How Does the Cost of Living Compare in Minnesota vs Alaska?
Cost of living is another major difference when moving to a brand new state.
Depending on the local industries, geography, region, and population, the price of different goods and services can vary greatly.
Now, the cost of living will also depend on your own lifestyle, spending habits, and which city you move to in Minnesota.
Cost of living (COL) indexes are used to compare each state to the national average of 100. The difference between COL values higher or lower than 100 represent the percentage difference from the national average.
We can compare the cost of living indexes for Minnesota and Alaska to get a high level idea of whether we’ll be saving money or have to spend a bit more on the following categories:
- Overall Cost of Living.
- Groceries.
- Housing.
- Utilities.
- Transportation.
- Healthcare.
- Miscellaneous goods and service.
Overall, the cost of living in Minnesota is
-5.90% cheaper
than the national average, compared to 24.40% more expensive for Alaska.
Minnesota Cost of Living Index
94.1
National Avg: 100
On average, the cost of living is lower in Minnesota. You’ll likely pay less for many things in Minnesota than you did in Alaska.
Cost of Groceries
-2.80% cheaper
than the national avg.
Typically, the cost of groceries is lower in Minnesota. You’ll likely pay less for groceries in Minnesota than you did in Alaska.
Housing Costs
-17.70% cheaper
than the national avg.
Generally, the cost of housing (rent/mortgage/etc) is lower in Minnesota. You’ll likely pay less for housing costs in Minnesota than you did in Alaska.
Minnesota Utilities
-8.50% cheaper
than the national avg.
The cost of utilities is typically lower in Minnesota. You’ll likely pay less for your monthly utility bills in Minnesota than you did in Alaska.
Transportation Costs
-1.00% cheaper
than the national avg.
On average, the cost of transportation is lower in Minnesota. You’ll likely pay less on transportation in Minnesota than you did in Alaska.
Healthcare in Minnesota
11.50% more expensive
than the national avg.
Generally, healthcare costs are lower in Minnesota. You’ll likely pay less for healthcare in Minnesota than you did in Alaska.
Miscellaneous Costs
-0.40% cheaper
than the national avg.
The cost of miscellaneous goods and services are generally lower in Minnesota. You’ll likely pay less for these things in Minnesota than you did in Alaska.
Relocalate.com Methodology
While big changes like moving to a new state can be exciting, we also know that any move can be stressful. That’s why we created Relocalate.com.
The data and comparisons on this page are designed to give you a high level look at what you can expect when moving from Alaska to Minnesota.
Our free moving tools and calculators are here to help you play around with the numbers so you can start working on a budget for your big move to Minnesota.
We’ve crunched the numbers from census data, federal government resources, state and local data, as well as interviews and chats with people who’ve made the move from Alaska to Minnesota.
While there are many things we can’t control when moving to a new state, like the overall cost of living and housing prices, we’ve found that one of the single most effective ways to save money is by getting a better deal on your insurance policies.
That’s why we’ve partnered with trusted insurance providers and some of the best in Minnesota to bring your free quote tools that you can access while you plan out your move.
Good luck! We wish you the best as you get settled into your home and start feeling like a Minnesota local.