How Much to Earn to Live in Melbourne? (2026)

Figuring out your cost of living is tricky, but it’s essential for setting realistic financial goals. Based on 2026 estimates, here is a rough breakdown of what you need to earn to live comfortably in Melbourne. Remember, 'comfortable' means you can save a little after covering necessities, not just scraping by.

For a single person, aiming for a take-home pay of around $70,000 to $80,000 per year is a safe bet. This allows for a modest 1-bedroom apartment (median rent around $500-$600 per week) and leaves room for savings. A couple generally needs closer to $110,000 to $130,000 per year. And for a family (two adults, one child), we're looking at the $180,000 to $220,000+ bracket. This takes into account higher costs for childcare, which can be a significant drain on your budget.

Before making any big decisions, use our cost of living calculator to fine-tune these numbers based on your lifestyle.

Let's look at the core expenses. Housing is usually the biggest chunk. As of 2026, the median rent for a 1-bedroom apartment in desirable areas of Melbourne is likely to hover between $500 and $650 per week. A 2-bedroom apartment might cost $650 to $800 weekly, while a modest house rental could push past $1,200 per week. We recommend sticking to the 30% rule: your total rent shouldn't eat up more than 30% of your take-home pay.

Beyond rent, you need to factor in essentials. Groceries for a family of three are estimated at $1,000 to $1,200 per month, and utilities (power, internet, water) will add another $250 to $350 monthly. Don't forget transport—if you rely on trams or buses, budget at least $250-$350 per month for a single commuter. To plan for these variable costs, check out our budget planner.

Melbourne is a fantastic city, but its cost of living can make you feel like you need a second mortgage! When comparing it to other major Australian cities, Melbourne generally sits in the upper-middle tier for cost. Sydney is often cited as having the highest cost of living, particularly regarding housing. Conversely, cities like Geelong or Ballarat often offer significantly more affordable housing options, meaning you might need to earn less to achieve the same lifestyle. If you’re exploring relocation, check out our guide on cost of living by city Australia to compare figures.

The key takeaway here is that while Melbourne has great transport links, the housing market dictates much of your required income. Understanding where your money is going—and where you can cut back—is half the battle!

The good news is that you don't have to pay top dollar for everything. To survive and thrive on a budget in Melbourne, focus on these key areas. First, tackle the coffee habit; bringing a thermos and making coffee at home can save you $10-$15 per day. Second, rethink your grocery shopping: instead of relying solely on major supermarkets, explore local farmers' markets, especially on the weekend. They often have fresher produce and better deals. Finally, consider your transport options; if your workplace is within a reasonable distance, cycling or walking is not only better for your health but also saves you hundreds in public transport fares over a year. By making these small changes, you can significantly boost your savings rate.

Q: Does this salary figure include taxes?

A: No, the figures provided are estimates for your necessary gross annual salary. Your actual take-home pay will be lower after mandatory tax, Medicare levy, and superannuation contributions.

Q: What about childcare costs?

A: Childcare is highly variable depending on the type of care and your suburb, but budget at least $1,200 to $1,800 per month for quality care. This is often the biggest unexpected expense for new families.

Q: Is earning $60,000 enough for a single person?

A: It would be tight in 2026, especially if you plan to save money. You would need to be extremely disciplined with rent and spending to make it work comfortably.