Who are the Millionaires in Minnesota? An In-Depth Look at the North Star State‘s Wealthiest Residents
When we think of America‘s billionaires and ultra-wealthy individuals, coastal states like New York, California and Florida typically come to mind. But Minnesota? The frigid North Star State is hardly considered a hotbed for the rich and famous. However, Minnesota is actually home to more than its fair share of millionaires and billionaires, especially clustered around the Twin Cities region.
This comprehensive guide will explore exactly who‘s who among Minnesota‘s wealthy residents. You‘ll discover how certain MN families built vast fortunes as well as the factors driving the accumulation of wealth across the state. Let‘s dive in!
Minnesota‘s Richest Families – Old Money and New Money
The Dayton family, heirs to Target Corporation‘s vast retail empire, are by far Minnesota‘s wealthiest clan with an estimated net worth of $7.7 billion. However, they are not the state‘s only billionaires. Here are a few other of Minnesota‘s richest families:
Old Money
- Cargill-MacMillan family: With an estimated $5.8 billion in combined net worth, these families maintain ownership stakes in Cargill Inc. The agricultural giant was founded in 1865 and remains one of the largest private companies in the U.S.
- Pohlad family: Currently worth around $4 billion, the Pohlad‘s own the MN Twins, banks, real estate ventures, and more. Their wealth stems from investments made by patriarch Carl Pohlad, who passed away in 2009.
New Money
- Carlson family: The Carlson family‘s net worth exceeds $1 billion thanks to their ownership of Carlson Companies. Their hotel, restaurant, and travel brands include Radisson Hotels, T.G.I. Friday‘s, and Carlson Wagonlit Travel.
- Andersen family: Worth $1.7 billion, this family derives its wealth from Andersen Windows, the largest window company in America. The Andersen Corporation was founded in 1903 and remains family-owned.
- Taylor family: With a $3 billion net worth, the Taylor family owns Enterprise rental car. Jack Taylor originally founded the company in St. Louis in 1957. His daughter Andy Taylor now acts as CEO.
As you can see, Minnesota is home to multi-generational family wealth as well as new money entrepreneurs who‘ve built their own business empires more recently.
Next let‘s examine the total number of millionaires and billionaires calls Minnesota home. The results may surprise you!
Millionaires by the Numbers in the North Star State
According to Internal Revenue Service (IRS) data from 2018, approximately 39,490 millionaire households calls Minnesota home. That includes filers showing an adjusted gross income of $1 million or more.
Here‘s how those millionaires break down geographically across the state:
- Twin Cities metro area: 15,000 millionaire households
- Suburban counties like Dakota, Scott, and Carver: 9,000 millionaire households
- Outstate Minnesota: 15,000 millionaire households
However, this IRS data relies solely on individually filed tax returns. It does not account for the many married couples and households filing jointly that would also qualify in the millionaire bracket.
Experts estimate the true number of millionaires in Minnesota lands closer to around 80,000 households in total. That means approximately 2.2% of the state‘s households are millionaires.
To provide more context on Minnesota‘s millionaire tally compared to other states, here is a breakdown of where the most millionaires live:
| State | # of Millionaire Households |
|---|---|
| California | 302,000 |
| New York | 200,000 |
| Florida | 129,000 |
| Texas | 105,000 |
| Illinois | 104,000 |
| Minnesota | 80,000 (estimated) |
So while Minnesota cracks the top 20 list, powerhouse states like California and New York far exceed it when it comes to sheer number of seven-figure households.
Next let‘s examine the key drivers that allow certain Minnesotans to achieve millionaire status while the state lags as whole.
How Education and Occupation Factor In
Though Minnesota is home to some incredibly wealthy families and individuals, the state overall actually ranks near the middle of the pack when it comes to median household income.
In 2019, Minnesota‘s median household income sat at $65,599 – good for 13th highest in the nation. Nothing to scoff at, but far below top states like Maryland ($83,242), New Jersey ($80,088) and Massachusetts ($77,385).
What explains this discrepancy between Minnesota‘s individual millionaires and the state‘s middle-of-the-road median income?
A few key factors are at play:
- Education level: Minnesota has one of the most highly educated populations in America, with 34.2% of residents over age 25 holding a Bachelor‘s degree or higher. Advanced degrees and specialized skills lead to higher earning potential.
- Occupational concentrations: Highly paid professionals in fields like healthcare, finance and engineering are clustered in urban hubs like the Twin Cities, skewing those areas richer.
- Generational wealth: Long-standing family fortunes like the Target, Cargill and Pohlad families increase Minnesota millionaire numbers. Yet much of that wealth is concentrated in just a handful of elite families.
In summary, Minnesota‘s mix of generational family wealth plus urban professional workers with high education levels explain why the state has so many millionaires. Yet the broader population‘s earning potential is limited by lower educational attainment and professional opportunity outside the metro regions, keeping median income moderate overall.
Now let‘s examine how Minnesota‘s tax structure impacts the wealthy.
Minnesota‘s Tax Profile – Not Too Punitive for Millionaires
Wealthy individuals and families considering where to live and work weigh factors like amenities, culture and cost of living. But taxes are always a top consideration. So how does Minnesota rate in terms of “tax friendliness” for the rich?
Minnesota levies a 9.85% top tax rate on individual income over $164,000 or joint married income over $273,470 as of 2024. Very wealthy earners may also pay an additional 3% surtax once certain high income thresholds are met.
When state, federal and local taxes are combined, Minnesota‘s overall tax burden lands close to the national average.
The state does not assess:
- Estate tax
- Inheritance tax
- Inventory tax
In summary, while not tax-free like states such as Florida and Texas, Minnesota‘s income tax rates remain relatively competitive for high net worth households compared to coastal states where top rates can exceed 12%.
Home prices are another major factor that weigh on millionaires‘ finances. Let‘s look at how Minnesota real estate stacks up.
Minnesota Home Prices – Paying More for Lakeside Living
For wealthy buyers especially, owning the right property in the right location is a top priority. So how does Minnesota‘s real estate market stack up in terms of value for millionaires?
The median home value in Minnesota is $259,500 as of January 2023. That‘s 3.5% higher than the national median home value of $250,000. Home prices certainly vary widely across the state though.
In sought-after lakeside communities like Lake Minnetonka and White Bear Lake, multimillion dollar homes with 250+ feet of shoreline are commonplace. $1 to $3 million is typical for lakefront living in desirable MN neighborhoods.
Meanwhile, million-dollar homes can also be found in affluent suburban enclaves like North Oaks and Dellwood as well as downtown penthouses in Minneapolis.
No matter where in Minnesota millionaires choose to settle, they end up paying a premium over national averages due to high demand for Minnesota‘s quality of life perks. Out-of-staters from the coasts moving to MN for lower taxes often drive up prices as well.
Let‘s wrap up with an overview of how Minnesota compares to other states in appeal for wealthy residents.
How Does Minnesota Stack Up for Millionaires?
We‘ve examined how Minnesota ended up with so many millionaire households as well as the state‘s moderate tax rates and real estate costs. But how attractive is Minnesota overall for millionaires compared to other states in the country?
Pros
- Low estate and inheritance taxes preserve intergenerational wealth
- Above average education levels and skilled workforce
- Vibrant metropolitan hubs with luxury amenities
- Natural beauty and ample lakeside living options
Cons
- Harsher winters than southern and coastal competitors
- Limited global air connections compared to major urban centers
- Higher cost of living than other Midwestern states
- Smaller core of Fortune 500 headquarters and business titans than NYC, Houston, Chicago
In summary, Minnesota lands in the middle of the pack for appeal to the ultra wealthy. While not atop any “best states for millionaires” lists, the Land of 10,000 Lakes does have considerable assets to tempt high net worth individuals.
The state provides a blend of relative tax savings, outdoor beauty and modern living. For billionaires like the Target fortune heirs and global executives at companies like UnitedHealth and Best Buy, Minnesota can be an attractive place to, well, target for long-term residence.
And thanks to all those lakeside living options, Minnesota may continue minting millionaires and billionaires for generations to come.
