Salary Comparison

Software Engineer Salary:
London vs Melbourne

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

London
$93,597
/ year
-3%
difference
Melbourne
$96,116
/ year
Bottom line: Melbourne wins on all three metrics — higher salary, more take-home pay, and greater purchasing power. How is this calculated? →
Metric
London
Melbourne
Median Gross Salary
Annual, before tax
$93,597
$96,116✓ higher
Entry Level
0–2 years experience
$62,101
$63,772✓ higher
Senior Level
8+ years experience
$141,067
$144,864✓ higher
Est. Take-Home Pay
After income tax + FICA
$63,646
$65,359✓ higher
Purchasing Power
Equivalent in median-CoL city
$62,398
$76,893✓ higher
Cost of Living Index
Relative to US median (1.00)
1.50×
1.25×✓ lower
Percentile 10 (Low)
Bottom 10% of earners
$49,060
$96,933✓ higher
Percentile 90 (High)
Top 10% of earners
$111,443
$220,193✓ higher

What if you move from London to Melbourne?

Gross salary change
+$2,519
3% increase
Take-home change
+$1,713
per year after tax
Purchasing power change
+$14,495
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

London$93,597
P10: $49,060Median: $93,597P90: $111,443
Melbourne$96,116
P10: $96,933Median: $96,116P90: $220,193

More Software Engineer salary comparisons

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Frequently Asked Questions

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

The median Software Engineer salary in London is £73,942/yr compared to A$146,096/yr in Melbourne. Melbourne pays 3% more in gross terms.

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

After adjusting for local cost of living, your London salary has the purchasing power of $62,398/yr in a median-cost city, vs $76,893/yr for Melbourne. Melbourne offers stronger real purchasing power.

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

After estimated taxes, a Software Engineer in London takes home approximately $63,646/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.