Salary Comparison

Software Engineer Salary:
Chicago, IL vs Melbourne

Side-by-side gross salary, after-tax take-home pay, and purchasing power comparison. Updated June 2026.

Chicago, IL
$172,147
/ year
+79%
difference
Melbourne
$96,116
/ year
Bottom line: Chicago wins on all three metrics — higher salary, more take-home pay, and greater purchasing power. How is this calculated? →
Metric
Chicago
Melbourne
Median Gross Salary
Annual, before tax
$172,147✓ higher
$96,116
Entry Level
0–2 years experience
$111,327✓ higher
$63,772
Senior Level
8+ years experience
$266,195✓ higher
$144,864
Est. Take-Home Pay
After income tax + FICA
$114,882✓ higher
$65,359
Purchasing Power
Equivalent in median-CoL city
$149,693✓ higher
$76,893
Cost of Living Index
Relative to US median (1.00)
1.15×✓ lower
1.25×
Percentile 10 (Low)
Bottom 10% of earners
$111,327✓ higher
$96,933
Percentile 90 (High)
Top 10% of earners
$266,195✓ higher
$220,193

What if you move from Chicago to Melbourne?

Gross salary change
$76,031
79% decrease
Take-home change
$49,523
per year after tax
Purchasing power change
$72,800
equivalent real income

Take-home pay is estimated using 2024 US federal tax brackets (single filer) + 7.65% FICA, or a blended international effective rate. Purchasing power converts gross salary to an equivalent in a US median cost-of-living city (index 1.00×). Full methodology →

Salary Range Comparison

Chicago, IL$172,147
P10: $111,327Median: $172,147P90: $266,195
Melbourne$96,116
P10: $96,933Median: $96,116P90: $220,193

More Software Engineer salary comparisons

Chicago vs New YorkChicago vs Los AngelesChicago vs HoustonChicago vs PhoenixChicago vs PhiladelphiaChicago vs San AntonioMelbourne vs SydneyMelbourne vs BrisbaneMelbourne vs PerthMelbourne vs AdelaideAll Software Engineer salaries →

Frequently Asked Questions

▶Does a Software Engineer earn more in Chicago or Melbourne?

The median Software Engineer salary in Chicago, IL is $172,147/yr compared to A$146,096/yr in Melbourne. Chicago pays 79% more in gross terms.

▶Is a Software Engineer salary worth more in Chicago or Melbourne after cost of living?

After adjusting for local cost of living, your Chicago salary has the purchasing power of $149,693/yr in a median-cost city, vs $76,893/yr for Melbourne. Chicago offers stronger real purchasing power.

▶What is the take-home pay for a Software Engineer in Chicago vs Melbourne?

After estimated taxes, a Software Engineer in Chicago, IL takes home approximately $114,882/yr, vs $65,359/yr in Melbourne. These are estimates based on standard federal tax rates and do not account for state/local taxes or deductions.