Cost of living
Best Australian Cities For Take-Home Pay
Short answer
Income tax is federal, so take-home pay on a given salary is identical in every state after PAYG tax and the 2% Medicare levy. What changes is rent. On our indicative figures a one-bedroom costs about $2,600 a month in Sydney against $1,600 in Adelaide and Hobart.
It comes down to rent
Sydney has the highest salaries but also the highest rents. More affordable cities can leave more spare cash for a similar salary. Compare with the cost of living calculator.
Frequently asked questions
Does tax differ by city?+
No - income tax is federal. Only the cost of living changes between cities.
Which city is cheapest?+
Adelaide and Hobart are typically among the more affordable capitals, though it varies by suburb.
Is a Sydney salary worth it?+
Only if the higher pay outweighs the higher rent - compare disposable income, not gross.
Sources & methodology
- ATO - Personal income tax: new tax cuts (15% rate from 1 July 2026)
- Income Tax Rates Act 1986 (legislation.gov.au)
- ATO - Study and training loan repayment thresholds and rates
- ATO - Super guarantee
- ATO - Contribution caps
- ATO - Payday Super and the annual maximum contribution base
- ATO - Medicare levy
- ATO - Medicare levy surcharge income thresholds and rates
- Fair Work Ombudsman - Pay slips
- How we calculate these estimates
Last updated 13 August 2026. Figures use the 2026-27 financial year.
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