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Salary Needed to Live in Melbourne, Australia (2026)

How much do you need to earn to live in Melbourne? We calculate the gross monthly salary required to cover rent, food, transport, and utilities — accounting for Australia's tax system.

You need at least $3,693/month gross to live in Melbourne on a budget.

For a comfortable lifestyle, aim for $4,847/month gross ($4,064 net after ~16% tax).

Monthly Expense Breakdown by Lifestyle

ExpenseBudgetComfortablePremium
Rent (1BR)
$1,800
Cheapest neighborhood (Footscray)
$2,400
Median neighborhood
$2,600
Premium neighborhood (Prahran)
Groceries$630$756$945
Transport$200$200$200
Utilities$300$300$300
Dining & Entertainment$340$408$510
Total Monthly Expenses$3,270$4,064$4,555

Budget Lifestyle

$3,693/month gross

Take-home pay$3,271
Effective tax rate~11%
Monthly expenses$3,270

Comfortable Lifestyle

$4,847/month gross

Take-home pay$4,064
Effective tax rate~16%
Monthly expenses$4,064

Premium Lifestyle

$5,570/month gross

Take-home pay$4,555
Effective tax rate~18%
Monthly expenses$4,555

Neighborhood Rent Comparison

1-bedroom second-hand rents across 9 neighborhoods in Melbourne

Most Affordable

Footscray

12 min by metro

$1,800 - $2,100

Brunswick

15 min by tram

$2,000 - $2,300

St Kilda

20 min by tram

$2,100 - $2,500

Most Expensive

Prahran

12 min by tram

$2,400 - $2,800

CBD Melbourne

0 min by walk

$2,400 - $2,800

South Yarra

10 min by metro

$2,300 - $2,700

Full Melbourne Cost of Living

See all 9 neighborhoods, detailed expense breakdowns, and savings projections.

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How We Calculate This

We total monthly expenses (rent, groceries, transport, utilities, dining out) for each lifestyle tier, then reverse-calculate the gross salary needed to cover those expenses after Australia's income tax and social contributions. Rent data comes from second-hand market listings (what expats actually pay). All figures are based on 2026 data from official government statistics. See our data sources for full attribution.

Frequently Asked Questions

What salary do I need to live in Melbourne?

On a budget lifestyle, you need at least $3,693/month gross salary to cover basic expenses in Melbourne. For a comfortable lifestyle, aim for $4,847/month gross. These figures include rent, food, transport, utilities, and dining out, with taxes calculated for Australia.

What is the average rent in Melbourne?

The average 1-bedroom rent across 9 neighborhoods in Melbourne is approximately $2,356/month. Rents range from $1,800 in Footscray to $2,800 in Prahran.

How much are groceries in Melbourne?

Monthly groceries for a single person in Melbourne cost approximately $630. This covers basic home cooking. Dining out and premium food will add to this budget.

What is the tax rate in Australia?

Tax rates in Australia are progressive. At the budget salary level of $3,693/month, the effective tax rate is approximately 11%. At the comfortable level of $4,847/month, it rises to approximately 16%. This includes income tax and social contributions.

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Updated Mar 2026

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© 2026 AffordWhere. Estimates only, not financial advice.

2026 tax rules • Mar 2026 rent data