Is $120,000 Enough to Live On in Sydney?
Full 2026 budget breakdown for living on $120,000 a year in Sydney, Australia. After-tax income, monthly expenses, and an honest verdict.
Last verified: 1 July 2025YES — You can live on $120,000 in Sydney
After tax you take home $7,568/month. Estimated living costs are $3,936/month, leaving a surplus of $3,632/month.
Lifestyle tier: Good
Your Income After Tax
Gross Annual
$120,000
Tax + Medicare
-$29,188
After Tax (Annual)
$90,812
Monthly Take-Home
$7,568
Monthly Expenses in Sydney
| Expense | Monthly Cost |
|---|---|
| Rent (1-bedroom apartment) | $2,400 |
| Groceries | $518 |
| Transport | $230 |
| Utilities | $288 |
| Phone & Internet | $120 |
| Insurance | $150 |
| Entertainment | $230 |
| Total Expenses | $3,936 |
| Your Take-Home | $7,568 |
| Monthly Surplus | +$3,632 |
Estimates based on average 2026 costs for a single person renting a 1-bedroom apartment in Sydney. Your actual costs may vary.
Where Your Money Goes
Smart Money Moves on $120,000 in Sydney
- You're in a solid position in Sydney with meaningful surplus for savings and lifestyle.
- Maximise your super contributions ($30,000 concessional cap) for significant tax savings.
- Consider investment property or a diversified share portfolio.
- You can comfortably afford to live alone, run a car, and take holidays.
- Focus on growing wealth: high-interest savings, ETFs, or property.
- Consider income protection insurance to protect your lifestyle.
What You'd Need to Earn to Be Comfortable in Sydney
To cover all expenses and have $1,000/month left for savings, you'd need a gross salary of approximately $74,000/year ($4,961/month after tax).
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Frequently Asked Questions
Can I live on $120,000 a year in Sydney?
Yes, you can live on $120,000 in Sydney. After tax, you'd take home $7,568/month with estimated expenses of $3,936/month, leaving a surplus of $3,632/month.
What is $120,000 after tax in Australia?
On a $120,000 gross salary, you'd pay approximately $29,188 in income tax and Medicare levy, leaving you with $90,812 after tax ($7,568/month).
How much is rent in Sydney in 2026?
The average rent for a 1-bedroom apartment in Sydney is approximately $2,400/month in 2026. Share houses are typically 30-50% cheaper.
What salary do I need to live comfortably in Sydney?
To live comfortably in Sydney (covering all expenses plus $1,000/month savings), you'd need a gross salary of approximately $74,000 per year.
Is $120,000 a good salary in Sydney?
$120,000 is a good salary in Sydney. You'll have a comfortable lifestyle with meaningful surplus for savings and investments.
This tool provides general information and estimates only based on publicly available data from the ATO, ASIC, and state government sources. It does not constitute financial, tax, or legal advice and should not be relied upon as such. Results may not reflect your specific circumstances. Always verify with a licensed financial adviser or the ATO before making financial decisions.