City Comparison · Updated May 2026
Australia
COL index 78.8
Australia
COL index 82.4
Melbourne vs Sydney — Cost of Living, Salary & Tax Compared (2026)
The verdict
Living in Melbourne is 4.4% cheaper than Sydney for the same lifestyle.
Based on Q1 2026 COL index and median single-person expenditure.
Side-by-side stats
| Melbourne | Metric | Sydney | Δ |
|---|---|---|---|
| 78.8 | Cost of living index | 82.4 | +4.6% |
| €50,000 | Median gross salary | €50,000 | 0.0% |
| €43,283 | Net at €50,000 gross | €43,283 | 0.0% |
| €2,180 | Rent — 1BR centre | €2,480 | +13.8% |
| €3,070 | Monthly COL (single) | €3,421 | +11.4% |
| €54,928 | PPP — net / COL | €52,528 | -4.4% |
| 13.4% | Effective tax @ €50,000 | 13.4% | 0.0% |
Monthly expenses — paired
Salary equivalence
€50,000 gross in Australia = €3,607 net monthly.
To have the same purchasing power in Sydney, you would need roughly €52,929 gross in Australia (≈ €3,772 net monthly, adjusted for cost-of-living index).
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Pros & cons
- +Lower rent (€2,180 vs €2,480)
- −High cost of living (index 79)
- +Favourable tax rate (13.4%)
- −High rent-to-income ratio (60.4%)
- −High cost of living (index 82)
- +Favourable tax rate (13.4%)
- −High rent-to-income ratio (68.8%)
The verdict
Across the data, Melbourne carries a lower cost-of-living index; Melbourne wins on purchasing power after costs are netted out. If purchasing power is your north star, Melbourne edges it.
Frequently asked
Is Melbourne cheaper than Sydney?+
Melbourne is cheaper. Cost-of-living index: Melbourne 78.8, Sydney 82.4 — a 4.4% difference (Q1 2026).
What is the cost of living difference between Melbourne and Sydney?+
Melbourne sits at 78.8 on our COL index, Sydney at 82.4. That works out to roughly 4.4% — Melbourne being the cheaper of the two.
Is Melbourne a good place to live compared to Sydney?+
It depends on priorities. Melbourne delivers €43,283 net on a €50,000 gross salary at a 13.4% effective tax rate. Sydney delivers €43,283 at 13.4%. Centre 1-bed rent: €2,180 vs €2,480.
How do salaries compare in Melbourne vs Sydney?+
On a €50,000 gross salary, take-home is €43,283/year (€3,607/month) in Melbourne and €43,283/year (€3,607/month) in Sydney.
Which city has lower taxes, Melbourne or Sydney?+
Australia has the lower effective rate at €50,000: Australia 13.4%, Australia 13.4%.